Page 3 - The Motor Vehicles Act, 1988

INTRODUCTORY

The Motor Vehicles Act, 1988, is an Act to consolidate and amend the law
relating to motor vehicles in India. It repealed its predecessor Act 4 of 1939.
The Motor Vehicles Act, 1939 had been amended several times to keep it up to
date. The need was, however, felt that this Act should now, inter alia, take into
account also changes in the road transport technology, pattern of passenger and
freight movements, development of the road network in the country and particularly
the improved techniques in the motor vehicles management.
Various expert bodies including the Law Commission had recommended
updating, simplification and rationalisation of this law. Several Members of Parliament
had also urged for comprehensive review of the Motor Vehicles Act, 1939, to make it
relevant to the modern-day requirements.
A working group was, therefore, constituted in January 1984, to review all the
provisions of the Motor Vehicles Act, 1939 and to submit draft proposals for a
comprehensive legislation to replace the existing Act. This working group took into
account the suggestions and recommendations earlier made by various bodies and
institutions and other transport organisations including the manufacturers and the
general public. Besides, obtaining comments of State Governments on the
recommendations of the working group, these were discussed in a specially convened
meeting of Transport Ministers of all States and Union Territories. Some of the more
important modifications so suggested related for taking care of (a) the fast increasing
number of both commercial vehicles and personal vehicles in the country; (b) the
need for encouraging adoption of higher technology in automotive sector; (c) the
greater flow of passenger and freight with the least impediments so that islands of
isolation are not created leading to regional or local imbalances; (d) concern for road
safety standards and pollution control measures, standards for transportation of
hazardous and explosive materials; (e) simplification of procedure and policy
liberalizations for private sector operations in the road transport field; and (f) need
for effective ways of tracking down traffic offenders.
The Supreme Court in M.K. Kunhimohammed v. P.A. Ahmedkutty AIR 1987 SC
2158, had made certain suggestions to raise the limit of compensation payable as a
result of motor accidents in respect of death and permanent disablement in the event
of there being no proof of fault on the part of the person involved in the accident and
also in hit and run motor accidents and to remove certain disparities in the liability of
the insurer to pay compensation depending upon the class or type of vehicles involved
in the accident. The above suggestions made by the Supreme Court have been
incorporated in the present legislation.
After the coming into force of the Motor Vehicles Act, 1988, government received
a number of representations and suggestions from the State Governments, transport
operators and members of public regarding the inconvenience faced by them because
of the operation of some of the provisions of the 1988 Act. A Review Committee was,
therefore, constituted by the government in March, 1990 to examine and review the
1988 Act.