The Rajya Sabha has cleared the Motor Vehicles (Amendment)Bill, 2019 that aims to improve road safety, facilitate citizens in theirdealings with transport departments, strengthen rural transport, publictransport and last mile connectivity through automation, computerization andonline services.As per the new ammendment, there will be a 10 time increase ininsurance compensation, from Rs 50, 000 to Rs 5 lakh.

Insurance firms have to pay claims within a month, if thevictim’s family agree to accept Rs 5 lakh compensation. The Bill also increasesthe minimum compensation for hit and run cases from Rs 25,000 to two lakhrupees in case of death, and from Rs 12,500 to Rs 50,000 in case of grievousinjury, the Bill says.The Bill has included the driver’s attendant in 3rd Partyinsurance. There will be no cap on liability of insurers while the claimprocess has been simplified.

The Motor Vehicles (Amendment) Bill, 2019 is based on therecommendations of the Group of Transport Ministers (GoM) of States constitutedby the Ministry of Road Transport & Highways.The Bill has been passed withthree government amendments and will need to go back to Lok Sabha. The LokSabha had already passed the Bill on the 23rd of July 2019.