Provisions of the Motor Vehicles Act and Amendments

Introduction

The Motor Vehicles Act, 1988 is the core central law governing road safety, licensing, registration, permits, and liability in India. It is regularly updated through amendments, court rulings, and changes in the Central Motor Vehicles Rules to address new compliance and safety requirements.

Compensation Claims and Licensing Provisions

• Section 166(3): A six-month limitation period from the date of accident was reintroduced for filing compensation claims before the Motor Accident Claims Tribunal (MACT) under the 2019 amendment, made effective from April 1, 2022.
• Supreme Court interim stay: In November 2025, the Supreme Court directed tribunals and High Courts not to dismiss compensation claims as time-barred under Section 166(3) while constitutional challenges are examined.
• LMV driving licence scope: In November 2024, the Supreme Court held that holders of a Light Motor Vehicle (LMV) driving licence may drive transport vehicles with an unladen weight of up to 7,500 kg.
• No separate endorsement: The ruling clarified that no separate endorsement is needed on an LMV licence for such transport vehicles within the 7,500 kg threshold.

Jan Vishwas Amendments and Permit Compliance

• Section 192A(1): With effect from January 13, 2025, the Jan Vishwas (Amendment of Provisions) Act, 2023 amended the law to impose a fine of ₹10,000, imprisonment, or both for driving a vehicle without a permit.
• No judicial leniency: The amendment removed the earlier discretion that allowed courts to record special reasons and impose a lower penalty for such violations.
• District Road Safety Committee: The Jan Vishwas changes also amended Section 215(3), enabling the Central Government to establish a District Road Safety Committee if a State Government fails to appoint one.

Central Motor Vehicles Rules: New Safety and Compliance Measures

• AVAS requirement: The Central Motor Vehicles (First Amendment) Rules, 2026, notified in January 2026, mandate the Acoustic Vehicle Alerting System (AVAS) in electric vehicles of categories M and N.
• Covered categories: Category M refers to passenger vehicles with at least four wheels, while category N refers to goods vehicles with at least four wheels.
• Implementation timeline: AVAS becomes mandatory for new electric vehicle models from October 1, 2026.
• Existing models: For existing electric vehicle models, the AVAS requirement will apply from October 1, 2027.
• Purpose: The rule is aimed at improving pedestrian safety, especially because electric vehicles are quieter than conventional vehicles.
• Toll-related compliance: The Central Motor Vehicles (Second Amendment) Rules, 2026, notified in January 2026, require full clearance of outstanding National Highway toll dues before certain approvals are issued.
• Blocked services: Pending toll dues can block a No Objection Certificate (NOC) for transfer of ownership, a Certificate of Fitness, or a National Permit.

Draft Proposal on Fitness Testing Fee

• Draft amendment rules: Draft Central Motor Vehicles Amendment Rules issued in February 2026 propose a hike in the fitness testing fee for medium and heavy goods or passenger vehicles.
• Proposed fee: The fee is proposed at ₹2,500, compared with the current ₹300 and ₹400.
• Vehicle age bracket: The proposal applies to vehicles that are between 13 and 15 years old.
• Policy intent: The change is meant to revise compliance costs for older commercial vehicles undergoing fitness testing.

Proposed Amendments on Dashboard Cameras

• Motor Vehicles (Amendment) Bill, 2025: Introduced in Parliament in December 2025, the bill seeks to add modern digital safety measures to transport law.
• Legal definition: It proposes a clear statutory definition of “dashboard camera” under the Motor Vehicles Act.
• Manufacturer fitment: The bill proposes mandatory manufacturer-installed dashboard cameras as a condition for new vehicle registrations and subsequent fitness renewals.
• Regulatory significance: If enacted, this would bring dashboard cameras into the formal safety and compliance framework.

Key Prelims Takeaways

• Section 166(3): Prescribes a six-month limit for motor accident compensation claims, though its enforcement is under interim stay.
• LMV licence: An LMV licence holder can drive transport vehicles up to 7,500 kg unladen weight without a separate endorsement.
• Section 192A(1): Driving without a permit now attracts a rigid penalty of ₹10,000, imprisonment, or both.
• Jan Vishwas impact: The amendments reduced judicial discretion in permit-related offences.
• AVAS: Mandatory for electric vehicles under the 2026 rules to improve pedestrian safety.
• Toll dues: Outstanding National Highway toll payments can block NOC, fitness certificate, and national permit-related approvals.
• Dashboard cameras: A proposed amendment seeks to define and mandate dashboard cameras for new vehicles.