New Traffic Rules: Doing this can save you from hefty fines, 3 months of imprisonment

Updated: September 9, 2019 3:04:01 PM

Soon after the new traffic rules came into effect, several cases of drivers paying hefty fines are being reported from all across the country. You should do this to avoid penalty.

New Traffic Rules, new traffic rules and fines, New Traffic Rules for Vehicle Insurance 2019, auto insurance, Motor Vehicles Act 2019, new traffic rules in india 2019, It is believed that with due implementation of the new law, the wide gap between uninsured and insured vehicles will narrow down significantly.

New Traffic Rules for Vehicle Insurance 2019: In order to improve road behaviour of people and promote road safety as a discipline, the Government of India recently implemented the newly-introduced Motor Vehicle (Amendment) Act, 2019, which came into effect from September 1. With amendments in over 63 clauses, the government seems all set to implement some strict penalties in some of the most common traffic violations. As per industry experts, the new law is being seen as a much-required initiative to inculcate an utter sense of responsibility among the citizens. It is also believed that with due implementation of the new law, the wide gap between uninsured and insured vehicles will narrow down significantly.

Soon after the new traffic rules came into effect, several cases of drivers paying hefty fines are being reported from all across the country. This is because the new Motor Vehicles Act has enhanced the penalties for various driving errors usually made by people, both intentionally and unintentionally. Over all, the government has enhanced penalty for offences where no penalty was implemented. The penalty for almost all first offence has been increased from up to Rs 100 to Rs 500 and the penalty for second/subsequent offence has been enhanced from 300 to Rs 1,500. Apart from this, several new penalties have also been introduced in case of violation of road regulations.

According to the new Motor Vehicles Act 2019 law, the penalty on driving a vehicle without a valid motor insurance has been increased to Rs 2,000 from Rs 1,000 for the first offence and for the second offence, the fine is Rs 4,000. Apart from the fine, there is a possibility of being jailed for 3 months on both these occasions. A 100% increase in the penalty for driving without a valid driving licence is majorly because as per the GIC report, in India there are over 19 crore registered vehicles out of which only 8.26 crore are insured. This is a grave issue as during an accident by an uninsured vehicle the victim has no other option than asking for compensation from the court rather than the insurer.

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As per a survey, most people do not bother to renew their policy after the initial years as it is not mandatory by law apart from the third-party insurance. An insurance policy basically consists of two main components, namely – Own Damage Cover and Third Party Cover. While the Own Damage Cover components for damages caused to own vehicle during an accident, the Third Party Cover compensates for damages caused to third person or property. By increasing penalty on driving without a valid driving licence, the government primarily aims at helping road accident victims so that they can claim compensation from the insurers.

Time to Renew Your Motor Insurance Cover

All those whose motor insurance policy is expiring soon must make sure to renew their policy well in advance so that they do not end up paying a hefty fine. Also, for those whose policy has already expired and are looking for best available options to renew their policy without much documentation can also look for online insurance aggregators. People whose policy has already lapsed can easily buy motor insurance within a few minutes by just uploading a few photos and videos of the vehicle on the aggregators’ mobile application and get a policy issued within a few minutes. For those whose policy is expiring soon, they just need to fill in the car details and compare policies from different insurers. It is better to buy or renew your motor insurance policy in three minutes rather than spending 3 months in jail for driving the vehicle without a valid insurance policy as per the new law.

(By Sajja Praveen Chowdary, Head-Motor Insurance, Policybazaar.com)

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