Evolution of Motor Vehicles Act

  • Author :
  • TATA AIG Team
  • Published on :
  • 14/09/2022

Every person has a hobby for life. Riding a bike and exploring different places have been crazy hobbies for many people belonging to different age groups in India. With the increase in the standard of living and various other affordable purchase options, there has been an increasing demand for the number of vehicles manufactured in India. But, unfortunately, as the number of vehicles on the road has been rising, so is the number of accidents. To increase awareness of safe riding principles and reduce the number of accidents, the Motor Vehicles Act was introduced in India. Here is a detail about its evolution for your understanding.

Before we get started, let us know what the Motor Vehicle Act means.

What Is the Motor Vehicle Act?

Every individual has a specific objective while riding their bike. It can be for leisure or a serious purpose. However, an inattentive ride to the destination can cause serious injuries to the rider and the vehicle. To improve the scenario and increase the responsibility among the people, the Motor Vehicle Act was introduced in India. It is important that we abide by the laws to ensure safety amongst us. The Indian Parliament passed the Motor Vehicle Act to regulate every aspect associated with the transport of vehicles in the country. There are different provisions for vehicle registration, insurance, traffic regulations, permits and other penalties.

Evolution Of The Motor Vehicles Act

The Motor Vehicle Act has a long history. It has increased the accountability of every rider and vehicle owner since then. Here is a brief history of the different legislations and their importance.

Indian Motor Vehicles Act, 1914 - The Indian Motor Vehicles Act, 1914 was the first Act passed in British India under central legislation. It provided the required powers to the local government to ensure the registration of vehicles and possession of a driving licence by all motorists. The Act had 18 sections and was amended in some princely states in the year 1920 and further in 1924.

Motor Vehicles Act, 1988 - The Motor Vehicles Act, 1988, made vehicle registration and obtaining a driver's licence compulsory. It introduced the concept of the learner's licence for all people planning to obtain a driving licence. It made using the 'L' board and the requirement of an instructor accompanying the driver compulsory while riding the vehicle in public. The Act also proposed rules and regulations related to insurance, traffic regulation and penalties, permit control, etc.

Here is a brief about certain significant provisions.

a. Section 177 of the Motor Vehicle Act has detailed the punishments for various offences against road safety, such as riders failing to obey traffic rules, operating driving schools without a valid licence, etc.

b. Section 130 Motor Vehicle Act states that the driver should produce his licence when a police officer demands it at any time. It also states that the owner or the driver should produce the vehicle’s insurance and registration certificate when asked for an examination.

The Act further stated that only persons above the age of 20 could drive a vehicle in public. Therefore, the age criterion was fixed for issuing the learner's licence and the driving licence.

Motor Vehicles (Amendment) Act of 2019 - To make road safety regulations stricter, the central government, in association with the state governments, introduced the Motor Vehicles Amendment Bill to modify the Motor Vehicles Act 1988. The Lok Sabha passed The Motor Vehicles (Amendment) Bill, 2017. The Rajya Sabha accepted and cleared the Bill in 2019. Here is a detail about the Motor Vehicle Act Amendment.

a. Aadhar card is mandatory for applying for a driving license and a vehicle registration certificate. b. If a hit-and-run case results in a death scenario, the government will offer ₹2 lakhs or more compensation amount to the respective family. c. If a juvenile violates the traffic rules, the vehicle's guardian or owner will be held responsible unless they try to prove that the incident happened without their awareness or that they tried to avoid it. d. The penalty for a drunken drive was increased to ₹10,000. e. Automated testing is mandatory for vehicles. f. The central government can recall motor vehicles if there is a defect that proves dangerous to the environment or the general public. g. The Bill also said that there would be a National Road Safety Board that would advise the central and the state government on the road safety standards, new technology, registration of vehicles, traffic management, etc., h. It offers a cashless treatment scheme for the victims of a road accident during an emergency.

With the changing lifestyle and technology, we see an increase in vehicles on the road. The Motor Vehicle Act was a necessary action by the government to improve the quality of driving, traffic management, and vehicle production to benefit the people and the environment.

Purchasing insurance for 2-wheelers is another mandatory provision under the Motor Vehicles Act. It states that the purchase of a third-party bike insurance policy is mandatory. A third-party bike insurance policy will provide financial coverage for damages that occur to a third person or vehicle. However, when you purchase comprehensive two-wheeler insurance, you can cover third-party liabilities and the damages to your bike.

At Tata AIG, we offer third-party and comprehensive bike insurance plans with customisable add-on covers. In addition, we offer a good network of garages throughout the country for the cashless claim and reimbursement benefits. You can compare two-wheeler insurance and purchase it online based on your comfort and affordability at any time.


The advancement in technology has helped manufacturers introduce many affordable bikes. It has enhanced comfort and increased the standard of living for many people throughout the country. However, while developments in the automobile industry are booming, there is also a significant rise in accidents. Therefore, the Motor Vehicles Act was introduced to regulate every aspect related to vehicles to improve traffic management and road safety. We must respect the Motor Vehicles Act for the well-being of the environment and the people in our country.

Share This Article
Facebook Feeds
Recent Tweets
Share This Article
Facebook Feeds
Recent Tweets

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Tata AIG Also Offers Insurance for the below products

Health Insurance

Travel Insurance

Car Insurance

Two Wheeler Insurance