A product of WRI Ross Center for Sustainable Cities

AMIIT BHATT

August 19, 2016

IS THE MOTOR VEHICLE (AMENDMENT) BILL 2016, A STEP CLOSER TO VISION ZERO INDIA?

ROAD TRANSPORT SECTOR – SNAPSHOT

India has the second largest road network in the world

India’s Road Network has expanded from ~4 lac km in 1951 to ~47 lac km in 2011

India has a road density 1.42km/sq.km., which is the densest for a country of this size and compares favourably with other middle-income and emerging countries

ROAD TRANSPORT IN INDIA: INFRASTRUCTURE

The last two decades have seen a dramatic increase in the overall number of vehicles used for road transport in India

The total number of vehicles is expected to increase 3-4x to 500-600 million by 2030

ROAD TRANSPORT IN INDIA: VEHICLES

21 Million(1991)

142 Million(2011)

14 Million(1991)

102 Million(2011)

All Vehicles 2-Wheelers

ROAD TRANSPORT IN INDIA: ROAD & RAIL

1950-51 2010-110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rail Road

1950-51 2010-110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rail Road

Freight Traffic Passenger Traffic

In last 60 years, the road sector has seen: The share of freight traffic increase from 10 to 69%The share of passenger traffic increase from 30 to 90%

ROAD TRANSPORT SECTOR – Issues & Challenges

PER DAY

UN-NATURALDEATHS

ROAD ACCIDENTS

Source: National Crime Records Bureau ADSI 2012

ROAD SAFETY SCENARIO IN INDIA

2008 2009 2010 2011 2012105,000

110,000

115,000

120,000

125,000

130,000

135,000

140,000

No. of Road Accidents

ROAD SAFETY SCENARIO IN INDIA

15

1

5

200

Children (<14 yrs) are killed everyday in road accidents in India

People are killed every hour in road accidents in India

Million people were seriously Injured or disabled in road accidentsin India in the past decade

Million people died in road

accidents in India in the pastdecade

3%

Annual GDP loss to Indiadue to road accidents

Statutes to protectchildren on the road

70

300

120

5600

Thousand + two wheeler riders died in the past decade

Thousand people can be saved every year with timely emergency medical care

Thousand + Vulnerable road users

killed in road accidents in the past decade

Thousand + people died in bus crashes from just 5 states in India in 2012

2001The year in which MVA was updated

Thousand + pedestrians died in road accidents in the past decade

The average vehicular speeds on India’s highways is significantly less than the global average, yet the number of deaths is higher by comparison

HIGHWAY SPEEDS AND ROAD SAFETY

India

USA

Mexico

Sri Lan

ka

German

y

Sweden

0

2

4

6

8

10

12

14

16

18

20 19

1413

12

6

4

Death rate per 100,000

India Global average0

20

40

60

80

100

120

140

160

Average truck speed kmph

30-55

60-140

Action required – road safety, speeds, and traffic conditions need improvement

Source: WorldLifeExpectancy.Com - 2011 , Deloitte research report - 2012

Although India spends less on logistics than most nations, its per ton-km total cost is 30-70% higher

LOGISTICS SPENDS – INDIA AND OTHER COUNTRIES

USA

Japan

Germany

India

0 500 1000 1500

1373

515

240

138

Spend on logistics (USD billion, 2007)

USA

Japan

Germany

India

0 2 4 6 8 10 12 14

10

10

8

13

Logistics as % of GDP (Percentage, 2007)

Road

Rail

Costal Shipping

0 2 4 6 8 10 12 14 16

India; 13.8

India; 3.2

India; 1.9

USA; 10.8

USA; 1.9

USA; 1.1

PPP adjusted unit cost (USc per ton-

km, 2007)

Sources: Industry trends, McKinsey

Inefficiencies in freight transport will result in wastage of over 1% of India’s total commercial energy consumption

INCREASED WASTE AND EMISSIONS

- Shortage of rail and interchange resulting in imbalanced mode mix (road share increases from 57% to 70%)

- Increased pressure on already congested road networks

- More traffic on expensive modes leads to higher transport costs

- Slower average road speeds leads to higher inventory levels

2007 Increase till 2020 TOTAL (2020)0

20

40

60

80

100

120

140

160

45

95

140

Logistics-related waste (USD billion)

Waste% of GDP

EmissionsMillion tons CO2 equivalent

4.5 - 5

11565 180

ROAD TRANSPORT IN INDIA: DEMAND

2012 2032

10,375 billion pkm

Overall Road Passenger Transport Demand Growth

168,875 billion pkm

16x

2012 2032

2,000 billion Tkm

Overall Road Freight Transport Demand Growth

13,000 billion Tkm

6.5x

Total Passenger Demand is expected to grow at 15.4% per annum over the next 20 years

Total Freight Transport Demand is expected to grow at 9.7% per annum over the next 20 years

ROAD TRANSPORT LEGISLATIONS

Indian Motor Vehicles Act, 1914Motor Vehicles Act, 1939A working group was, therefore, constituted in January, 1984 to review all the provisions of the Act of 1939. The motor Vehicles Act 1988 MV Act 1988 has so far been amended three times in the years 1994, 2000 and 2001Sundar Committee Report Road Transport & Safety Bill 2014 (Draft)Motor Vehicles Amendment Bill 2016 (Draft)

HISTORY OF TRANSPORT LEGISLATION

GLOBAL COMPARISON OF MV ACTS – VEHICLES

GLOBAL COMPARISON OF MV ACTS – USERS

GLOBAL COMPARISON OF MV ACTS – DRIVERS

GLOBAL COMPARISON OF MV ACTS – INFRASTRUCTURE

GLOBAL COMPARISON OF MV ACTS – REGULATION

Motor Vehicles

Amendment BILL 2016

MV AMENDMENT BILL – HIGHLIGHTS

MV AMENDMENT BILL – HIGHLIGHTS

MV AMENDMENT BILL – HIGHLIGHTS

MV AMENDMENT BILL – SUMMARY

KEY FEATURES – DETAILS

• New terms defined- ‘adapted vehicle’, ‘aggregator’, ‘community service’, ‘driver refresher training course’, ‘golden hour’, ‘scheme’ and ‘testing agency’.

• Section 2B (inserted)- It seeks to provide flexibility to the Central Government to exempt new technologies, inventions or innovations from the provisions of the principal Act to promote innovation.

• Section 8 (amended)- It seeks to simplify the process of obtaining a learner’s licence. The applicant will also be able to apply to any licensing authority in the State or use online means to submit the application, fee and other documents. The learner’s licence could then be provided in electronic form.

• Section 9 (amended)- It seeks to simplify the process of obtaining a driver’s licence in the same manner as obtaining learner’s license.

• Section 10 (amended)- Here, the term ‘invalid carriage’ is proposed to be replaced with the term ‘adapted vehicle’, in order to take a more sensitive approach towards the mobility needs of the differently abled.

• Section 14 (amended)- It seeks to increase the length of time for which a driving licence shall remain valid.

• Section 15 (amended)- It seeks to allow a licence holder to apply for renewal of licence any time in a window of six months before expiry of licence and six months after.

KEY FEATURES – DETAILS

• Section 19 (amended)- It seeks to provide for disqualification from holding driving licence and revocation of driving licence of drivers found to commit certain traffic offence. They will also be required to complete a driver refresher training course, as prescribed by the Central Government.

• Section 25A (inserted)- It seeks to establish a National Register of Driving Licences containing data on all driving licences issued throughout India by assimilating data from all state registers.

• Section 41, 43, 44 (amended)- Changes in these section are around registration of new motor vehicles by dealers, penalties for dealers who fail to register a new motor vehicle and removing the requirement of producing the motor vehicle before the registering authority at the time of registration.

• Section 49 (amended)- It seeks to simplify the process for recording change of residence on registration certificate by making it online. There will also be increased penalty for not providing the new information on time.

• Section 55 (amended)- It states that a registering authority can cancel registration of a vehicle, if it is suspected of being used for an offence.

• Section 56 (amended)- It states that no certificate of fitness shall be granted to a vehicle, after October 1, 2018, unless the vehicle has been tested at an automated testing station.

KEY FEATURES – DETAILS

• Sections 62A and 62B (inserted)- Section 62A seeks to prohibit the registration of oversized vehicles and issuance of certificates of fitness to such vehicles. Section 62B seeks to establish the National Register of Motor Vehicles that shall contain data on all motor vehicles registered throughout India.

• Section 66A and 66B (inserted)- 66A It seeks to empower the Central Government to develop and implement a National Transportation Policy. 66B states that permit holders shall not be disqualified from applying for a licence under a scheme for the transportation of goods and passengers.

• Section 67 (amended)- Empowers the State Government to issue directions to the State Transport Authority and the Regional Transport Authorities to safeguard the convenience of passengers, prevent overcrowding, promote road safety and provide economically competitive fares.

• Section 72 (amended)- It states that the Regional Transport Authority may relax condition for a Stage carriage permit if it helps rural transport.

• Section 74 (amended)- It looks at empowering the Regional Transport Authority to waive any permit condition for a contract carriage to promote low cost last mile connectivity solutions. It also states that priority will be given to self-help groups for issuing permits.

• Section 88A (inserted)- It empowers the Central Government to modify permits and make schemes for inter-state transport of goods and passengers.

• .

KEY FEATURES – DETAILS

• Section 93 (amended)- It seeks to provide formal recognition to transport aggregators and details out their role. Later Section 193 is amended to add penalties for offences by them.

• Section 110A and 110B (inserted)- It empowers the Central Government to recall vehicles that do not meet quality standards. 110B seeks to issue type approval letters and regulations for testing agencies.

• Section 116 (amended)- It seeks to remove advertisements from National Highways that may be distracting for commuters.

• Section 129 (amended)- It makes the rule for wearing helmets more stringent. It states that any person above 4 years of age- rider, pillion or being carried- will have to wear helmets.

• Section 134A (inserted)- It provides for protection of ‘Good Samaitans’ who help in getting medical aid for persons injured in road accidents.

• Section 135 (amended)- It empower the State Government to make schemes for any amenities in the interests of the public. It also empowers the Central Government to make schemes for in-depth studies and analysis of causes of road accidents.

• Section 136A (inserted)- It seeks to allow electronic monitoring and enforcement. It provides for body-wearable cameras for data collection.

KEY FEATURES – DETAILS

• Section 138 (amended)- It empowers States to regulate pedestrians and non-motorised transport. The existing Act does not mention pedestrians anywhere and hence, does not provide for any rules/guidelines for their safety. It is the only time pedestrians are mentioned in this bill as well.

• Chapter X- Sections 140 to 144 (omitted)- The entire chapter has been deleted. It discussed the liability of paying compensation to road accident victims. Some provisions have been made part of chapter XI.

• Chapter XI- Sections 145 to 164 (amended)- This entire chapter on insurance and compensations has been amended and made anew. This chapter aims to simplify the third party insurance for motor vehicles. It empowers the Central Government to prescribe the premium and the corresponding liability of the insurer for the policy. A new Section 164B has been added to establish Motor Vehicle Accident Fund.

• Chapter XIII- Sections 177 to (amended)- Several Sections in this chapter on penalties have been amended to increase penalties for traffic offences. Some of the interesting new additions include stringent laws for juvenile offenders, aggregators, excessive honking and those related to registration of vehicles. Another addition is that of prescribed hours for community service as penalty for some offences. These did not exist earlier. Details of penalties are mentioned below in table 1. Additionally, the state government holds the power to increase the penalties further.

PREVISIONS ON AGGREGATORS • Aggregator

– It means a digital intermediary or market place for a passenger to connect with a driver for the purpose of transportation

• Rules– They will not engage as an agent in the business of collecting,

forwarding or distributing goods carried by goods carriages.– While issuing the licence to an aggregator the State

Government shall follow guidelines of the Central Government– Every aggregator shall comply with the provisions of the

Information Technology Act, 2000 and the rules and regulations• Penalty for aggregators-

– Operating without license- Rs 1000 for first offence ; Rs 2000 and 6 months imprisonment for second offence

– Not following all rules of section 93 of the MV Act- fine of Rs 25,000 to Rs 100,000

KEY FEATURES – PENALTIES Section Details Existing Provision Proposed Provision177 General Rs 100 Rs 500New 177A Rules of road regulation violation Rs 100 Rs 500178 Travel without ticket RS 200 Rs 500179 Disobedience of orders of authorities Rs 500 Rs 2000180 Unautorized use of vehicles without

licenceRs 1000 Rs 5000

181 Driving without licence Rs 500 Rs 5000182 Driving despite disqualification Rs 500 Rs 10,000182 B Oversize vehicles New Rs 5000183 Over speeding Rs 400 Rs 1000 for LMV

Rs 2000 for Medium passenger vehicle184 Dangerous driving penalty Rs 1000 Upto Rs 5000 185 Drunken driving Rs 2000 Rs 10,000189 Speeding / Racing Rs 500 Rs 5,000192 A Vehicle without permit upto Rs 5000 Upto Rs 10,000193 Aggregators (violations

of licencing conditions)New Rs 25,000 to

Rs 1,00,000194 Overloading Rs 2000 and Rs

1000 per extra tonne

Rs 20,000 and

Rs 2000 per extra tonne

KEY FEATURES – PENALTIES Section Details Existing Provision Proposed Provision194 A Overloading of passengers Rs 1000 per extra passenger194 B Seat belt Rs 100 Rs 1000194 C Overloading of two wheelers Rs 100 Rs 2000, Disqualification for 3 months

for licence194 D Helmets Rs 100 Rs 1000 Disqualification for 3 months

for licence194 E Not providing way for emergency

vehiclesNew Rs 10,000

196 Driving Without Insurance RS 1000 Rs 2000199 Offences by Juveniles New Guardian / owner shall be deemed to

be guilty. Rs 25,000 with 3 yrs imprisonment. For Juvenile to be tried under JJ Act. Registration of Motor Vehicle to be cancelled

206 Power of Officers to impound documents Suspension of driving licenses u/s 183, 184, 185, 189, 190, 194C, 194D,194E

210 B Offences committed by enforcing authorities

Twice the penalty under the relevant section

Thank You

abhatt@wri.org