MV Act, 1988

Need of MV Act
MV act is a central act that came into force from 1 July 1989. It replaced Motor
Vehicles Act, 1939 which earlier replaced the first such enactment MV act, 1914.
The Act was enacted to give effect to the suggestions made by Supreme Court in
MK Kunhii Mohammed v. PA Ahmedkutty 1987
the act was amended several times especially in 1994, 2000, 2015 and 2019
India is a signatory to Brasillia Declaration (Road Safety) and it has committed to
reduce the number of road accidents by 50 percent in 2020.
Features and Need of MV Act

Improve road safety: The Act aims to promote road safety by establishing a
framework for addressing accidents and enforcing traffic laws.

Regulate vehicles: The Act regulates the registration and licensing of vehicles,
as well as the maintenance and operation of vehicles.

Ensure insurance: The Act requires the Central government to establish a

Motor Vehicle Accident Fund and provide compulsory insurance cover to all
road users.

Control pollution: The Act includes measures to control pollution.

Increase compensation: The Act increased the amount of compensation

available for hit-and-run cases and eliminated the time limit for filing a
compensation claim.

Track down traffic offenders: The Act provides for stricter protocols for
granting driving licenses and more deterrent punishment for certain traffic
offenses.

Rationalize vehicle types: The Act rationalized definitions for types of

vehicles.

Legislative Provisions

MV Act, 1988 1
 1. Licensing of Drivers (s 3-28)

2. Registration of Vehicles (s 39-65)

3. Insurance (s 145-164)

4. Liability (No fault - 140 -144)

5. Prohibited Act (s 110-134)

6. Offences and Penalties (s 177- 203)

Meaning of Motor Vehicle (s 2 (28)) - any mechanically propelled vehicle adapted

for road use
power of propulsion can be both internal or external
chasis to which a body has not been attached and a trailer.

Licensing of Drivers (s 3-28)

Section 3 - Necessity of Driving Licence
No person shall drive in public place unless he holds effective driving licence
issued to him authorising him to drive the vehicle

transport vehicle cannot be driven unless driving licence specifically entitles him
to do so.
Section 4- Age limit in connection with the driving of motor vehicles

Motor Vehicle - 18 years

50 cc motorcycle - 16 years

Transport vehicle - 20 years

Section 5- Responsibility of owners of motor vehicles for contravention of
sections 3 and 4
No owner is to give the vehicle to any person who does not fulfill 3 and 4.

Section 6 - restrictions on the holding of driving licences

MV Act, 1988 2
 no person while having a DL hold any other DL except a LL or a DL issued under
section 18(DL for driving vehicles belonging to Central Gov).
no person holding a DL permit it to be used by any other person

Section 7 - Restriction on the granting of LL for certain vehicles

LL for transport vehicles requires DL to LMV at least for one year.

No person under 18 would be given LL for WIthout Gear MC unless consent in

writing of the person having the care of the person is obtained.

Section 8 - Grant of LL
Application to licensing authority having jurisdiction in

area where he ordinarily resides or carries on business

in which school or establishment referred to in section 12 from where he

intends to receive instruction in driving a motor vehicle is situated.

forms prescribed by the Central govt

accompanied by medical certificate in form prescribed by central govt and signed
by registered medical practitioner
if medical certificate indicates any disease that would cause danger to public if LL
is granted then licensing authority can refuse to issue LL

to get LL satisfaction of licensing authority is to be met

Section 9 - Grant of DL

Same concept of jurisdiction

form and fee as prescribed by the central govt

if passed the test as prescribed by Central govt, he shall be issued DL

No test required when

applicant previously held a DL and period between date of expiry and date of
application does not exceed 5 years

holds DL as per section 18

holds a DL to drive such class of vehicle by a competent authority of any

country outside India

MV Act, 1988 3
 for transport vehicle minimum educational qualification as prescribed by central
govt and a Driving certificate by a school or establishment is required
If applicant fails test - reappear after 7 days

if fails after 3 appearances, not qualified to re-appear before 60 days of last test.
Test of competence to drive shall be carried out in the vehicle of the type to which
application refers.

if applicant is habitual criminal or drunkard or NDPS adict or licence revoked then

DL can be refued by he can make appeal to the prescribed authority.
Section 10 - forms and contents of licences to drive

classes of MV-

motorcycle without gear

motorcycle with gear

invalid carriage

light motor vehicle

transport vehicle

road roller
motor vehicle of a specified description

Section 11 - Additions to DL

any person holding DL to drive any class can apply for any other class and section
9 would be followed to grant licence

Section 12 - Licensing and Regulation of schools or establishments

Central govt may make rules for purpose of licensing and regulating by state
governments schools or establishments
the rules do licensing, granting renewal or revocation of licence of schools and
establishment

Section 13- Extent of effectiveness of licences to drive motor vehicles -

LL issued under this Act effective throughout India.

Section 14- currency of licences to drive motor vehicles

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 LL issued valid for 6 months from the date of issue of the licence

DL for transport vehicle effective for 3 years

DL for other vehicles 20 years or 50 years of age, whichever is earlier

After 50 years of age effective for 5 years

Section 15 - Renewal of Driving licences

on application made to renew DL would be done with effect from date of expiry

if past 30 days after date of expiry then from effect the date of its renewal

for renewal of transport vehicle DL and if applicant has attained 40 years then
medical cetificate is required and other provisions as they apply in learner’s
licence would be applied.
fee required for application

if renewal rejected fee would be refunded

Section 16- Revocation of DL on grounds of disease or disability

licensing authority if has reasonable grounds to believe as per the medical

certificate by virtue of any disease or disability would then revoke the DL

Section 17 - Orders refusing or revoking DL and appeals therefrom

reasons to be given in writing for refusal or revocation of LL or DL or add class

aggrieved person can appeal to prescribed authority within 30 days of receiving

order

Section 18 - DL to drive motor vehicle, belonging to Central govt

DL under this section would need to specify class or description of vehicle and
also time period

Cannot drive any other motor vehicle except a motor vehicle he is entitled to

authority issying DL may at request of state govt furnish information relating to

such person whom a DL is issued as that govt may at any time require.

Section 19- Power of licensing authority to disqualify from holding a DL or revoke

such licence.
Habitual criminal or drunkard

Habitual drug adict under NDPS

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 using motor vehicle in commission of cognizable offence
previous conduct shows he is danger to public

DL obtained by Fraud or misrepresentation

act that would cause nuisance or danger to the public as prescribed by central
govt
being a person under 18 years who was granted LL or a DL with consent in writing
of person having the care of the holder of the licence and has ceased to be in
care

Appeal within 30 days

Section 20 - Power of court to disqualify

when a person is convicted under this Act or any offence which motor vehicle was
used, the court may declare disqualification of driving licence to drive all classes
or description of vehicles, or any particular description as specified in such
licence

A court shall unless for special reasons to be recorded in writing order

disqualification of a person convicted under 184, 189 or 192

Section 21- Suspension of Driving licence in certain cases

under section 184 if previously convicted and again if a case is then DL is
suspended for

6 months from date on which case is registered

if such person is discharged or acquitted before the expiry of the period aforesaid,
until such discharge or acquittal

if acquitted court shall cancel the endorsement on such DL with regard to the
suspension thereof.

Section 22- Suspension or cancellation of DL on conviction

if committed offence under section 184 then the person is convicted then the
court can suspend DL for a period it may think fit

if a person previously convicted of offence under section 185 is again convicted

then the DL will be cancelled

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 if DL is suspended or cancelled then the court shall take the driving licence in its
custody, endorse the cancellation or, as the case may be suspension send DL so
endorsed to authority by which licence was issued or last renewed and on
receiving keep the licence in safe custody

Section 23- Effect of disqualification order

a person who is disqualified under section 19 and 20 shall be debarred to the
extent and for the period specified in such order from holding or obtaining a
driving licence and the DL shall cease to be effective to such extent and during
such period.

Section 24- Endorsement

the court or authority making an order of disqualification shall endorse or cause to
be endorsed upon the DL if any held by the person disqualified.
Section 25- Transfer of endorsement and issue of driving licence free from
endorsement

an endorsement on any DL shall be transferred to any new or duplicate DL

obtained by the holder thereof until the holder becomes entitled to have DL issued
to him free from endorsement.

Registration of Vehicles (s 39-55)

No person shall drive any motor vehicle and no owner shall cause or permit the
vehicle to be driven in any public place unless the vehicle is registered (s39).

Registration to be made in the jurisdiction the person had residence or place of

business (s40).
application on behalf of owner of motor vehicle shall be made accompanied by
documents and info as prescribed by central govt, when a motor vehicle is jointly
owned by more than one person, application made by one on behalf of all owners
shall be deemed to be the owner of MV.
registering authority shall issue the owner of Motor vehicle certificate of
registration in form prescribed by central govt
Certificate valid only for 15 years

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 there would be fee for registration

(s 41).
certificate of registration with special registration mark would be given to
diplomatic officer or consular officer.

if any vehicle is ceased to be property of any diplomatic officer or consular officer

then the Certificate would also cease to be effective
Central govt may make rules for registration of motor vehicles belonging to
diplomatic officers and consular officers (s42).
owner of a vehicle can temporarily register and get temporary certificate of
registration and a temporary registration mark valid only for 1 month and non-
renewable (s43)
the registering authority shall before proceeding to register a motor vehicle or
renew the certificate of registration of the vehicle shall order to produce such
vehicle before itself or an authority which state govt would appoint (s 44).
if vehicle is stolen or defective or fails to comply with the requirements of the Act
the registering authority may refuse to register or renew the certificate of
registration (s45).
Vehicle registered in one state shall not be required to be registered elsewhere in
India, effective throughout India ( s46)

When a MV is registered in one state has been kept in another state for more than
12 months, the owner can apply to change the registration mark, NOC is required
or if noc not obtained then receipt obtained or postal acknowledgement received
by owner if he has sent an application (s 47)

NOC to be granted to the applicant within 30 days of the receipt of application if

not communicated it shall be deemed to have granted the NOC, before granting
report from police is needed that no case relating to the theft of the motor vehicle
concerned has been reported or is pending (s 48)
if owner of a motor vehicle ceases to reside or have his place of business at the
address recorded in the certificate of registration of the vehicle, he shall, within 30
days of any such change. intimate in form prescribed the central govt
if he fails then fine of 100 rupees (s 49)

MV Act, 1988 8
 Within 14 days of transfer transferor to report the fact of transfer to the central
government in prescribed manner, for within the state. For outside the state it is
45 days along with NOC, if no NOC then receipt or postal acknowledgement

transferee within 30 days report the transfer to the registering auhtority where he
has residence or place of business where vehicle is normally kept
if transferor or transferee fails to report, action under 177 and fine of 100 rupee (s
50)

hire-purchase, lease or hypothecation agreement is made, the registering

authority shall make an entry in the certificate of registration regarding the
existence of the said agreement.

ownership of vehicle transferred and the transferee enters into said agreement,
central govt may prescribe parties to the said agreement, to make an entry as to
existence of the said agreement in the certificate of registration.

entry made may be cancelled by last registering authority on proof of termination

of the said agreement by the parties concerned on an application being made in
form prescribed by central govt

No transfer without the consent of the person whose name has been specified in
the certificate of registration
for renewal or issue of duplicate certificate or assignment of new registration
mark or NOC or change in residence or place of business or alteration of vehicle
shall apply to appropriate authority.
Within 7 days of receipt of an application, the financier may issue or refuse for
reasons which shall be recorded in writing and communicated to the applicant. (s
51)
no owner to alter the vehicle that makes variance with those originally specified
by manufacturer to that contained in certificate of registration.
central govt may prescribe specifications, conditions for approval, retrofitment
and other related matters for conversion kits

if alteration made without approval of registering authority, within 14 days report

alteration to the registering authority within whose jurisdiction he resides and
forward the certificate of registration to authority along with prescribed fee.

MV Act, 1988 9
 no person holding a vehicle under hire-purchase agreement shall make any
alteration to vehicle except with the written consent of the registered owner. (s52)
if any vehicle in such a condition that its use in public place would constitute a
danger to the public, or it fails to comply with requirements of this Act, or used for
hire without valid permit, the authority may after giving the owner an opportunity
of making any representation suspend the certificate of registration of that vehicle
(a) until the defects are rectified to its satisfaction (b) for period not exceeding 4
months.
any authority other than registering authority when making suspension order
intimate in writing the fact of such suspension and the reasons therefore
when registration suspended for continuous period of not less than one month,
inform original registering authority.

owner of the vehicle to surrender certificate of registration under such suspension

COR surrendered shall be returned to the owner when the order suspending
registration has been rescinded and not before.(s 53)

Suspension of registration of a vehicle under 53 has continued without

interruption for a period of not less than six months, the registering authority
within whose jurisdiction the vehicle was when the registration was suspended,
may, if the original registering authority, cancel the registration. (s 54)

if motor vehicle has been destroyed or he has rendered permanently, incapable of

use, the owner shall, within 14 days or as soon as ,may be report the fact to the
registering authority within whose jurisdiction he has the residence or place of
business and shall forward COR to that authority.
the registering authority shall cancel the registration and certificate of registration
if registering authority is satisfied that the registration of a motor vehicle has been
obtained on the basis of documents which were, by representation of facts false
in any material particular, or engine number or the chassis number are different
from such entered in certificate of registration.

registering authority cancelling under this section, communicate such fact in

writing to the owner of the vehicle surrender to that authority the certificate of
registration of the vehicle. (s 55)

MV Act, 1988 10
 Insurance (145 - 153)
Definitions - s 145
Authorised insurer - insurer for the time being carrying on general insurance
business under the General Insurance Business (Nationalisation) Act, 1972.

Certificate of insurance - certificate issued by authorised insurer and includes a

cover note complying with such requirements as may be prescribed.
Liability - used in relation to the death of or bodily injury to any person, includes
liability in respect to section 140
policy of insurance- includes certificate of insurance
property - includes good carried in the motor vehicle, roads, bridges, culverts,
causeways, tree, posts and mile-stones.
reciprocating country - any country on the basis of reciprocity be notified by the
central govt in the official gazette to be a reciprocating country.

third party - includes government

Necessity for insurance against third part risk- S 146

No person shall use or allow any other to use motor vehicle in a public place,
unless a policy of insurance complying within the requirements of this chapter.
Shall not apply to vehicle owned by central govt or state govt and used for govt
purposes unconnected with any commercial enterprise.

Requirements of policies and limits of liability- s 147

policy of insurance must be a policy

issued by a person who is an authorised insurer

insures against any liability which may be incurred by him in respect of the
death of or bodily injury or damage to any property of a third party caused by
or arising out of the use of the vehicle in a public place, against the death of or
bodily injury to any passenger of a public service vehicle caused by or arising
out of the use of vehicle in public place.

policy not required

MV Act, 1988 11
 1. by employer in order to cover liability in respect of the death or in bodily injury,
arising out of his employee, out of and in course of employment,

2. to cover any contractual liability.

policy shall be of no effect until issued by the insurer in favour of the person by
whom the policy is effected a certificate of insurance in the prescribed form and
containing the prescribed particulars.
where cover note issued by insurer made under provisions of this chapter or rules
is not followed by policy of insurance within prescribed time, the insurer shall,
within 7 days of expiry of the period of the validity of the cover note, notify the
fact to the registering authority.
insurer issuing policy of insurance is supposed indemnify the person or classes of
persons specified in policy in respect of any liability which the policy purports to
cover in the case of that person or classes of person.
Validity of policies of insurance issued in reciprocating countries - s 148

when vehicle operates on any route within any common area between India and
reciprocating country, a policy of insurance complying with the requirements of
the law of the insurance in force in that country, such policy of insurance shall be
effective throughout the route or area in respect of which, arrangement has been
made.
Duty of insurers to satisfy judgments and awards against persons insured in
respect of third party risks - s 149

the insurer shall subject to the provisions of this section, pay to the person entitled
to the benefit of the decree any sum not exceeding the sum assured payable in
respect of the liability, together with any amount payable in respect of costs and
any sum payable in respect of interest on that sum by virtue of any enactment
relating to interest on judgements.
No sum shall be payable by an insurer before the commencement of the
proceedings in which the judgement or award is given the insurer had notice
through the court or claims tribunal.
An insurer to whom notice of the bringing of any such proceedings is so given
shall be entitled to be made a party thereto and to defend the action on following
grounds

MV Act, 1988 12
 that there has been breach of a specified condition of the policy

condition excluding use of vehicle , for hire or reward, when the vehicle on
date of contract is not covered by permit to ply for hire or reward, for
organised racing or speed testing, for purpose not allowed by permit
under which the vehicle is used.

a condition excluding driving by a named person or persons or by any

person who is not duly licensed, or by any person who has been
disqualified for holding or obtaining a driving licence

condition excluding liability for injury caused or contributed to by

conditions of war, civil war, riot or civil commotion.

that the policy is void on the ground that it was obtained by the non-disclosure
of a material fact or by a representation of fact which was false in some
material particular.

where any such judgement is obtained from a court in a reciprocating country and
in the case of a foreign judgment is, by virtue of Section 13 of CPC 1908
conclusive as to any matter adjudicated upon by it, the insurer shall be entitled to
benefit of the decree in the manner and to the extent, as if the judgment were
given by a court in India
if the amount which an insurer becomes liable under this section to pay in respect
of a liability incurred by a person insured by a policy exceeds the amount, the
insurer shall be entitled to recover the excess from that person.
no insurer shall be entitled to avoid his liability to any person entitled to the benefit
of any such judgment or award.
Rights of Third parties against insurers on insolvency of the insured -

s 150
A person is insured against liabilities which he may incur to third parties, then
in the event of the person becoming insolvent or making a composition or
arrangement with his creditors, or
where insured person is a company, in the event of winding up order being made
or a resolution for a voluntary winding up being passed

MV Act, 1988 13
 either before or after the event, any such liability is incurred by the insured person,
his rights against the insurer under the contract in respect of the liability shall, be
transferred to and vest in the third party to whom the liability was so incurred.
Where an order for the administration of the estate of a deceased debtor is made
according to law of insolvency, then, if any debt provable in insolvency is owing
by the deceased in respect of a liability to a third party against which he was
insured under a contract of insurance, the deceased debtor’s rights against the
insurer in respect of that liability shall, be transferred to and vest in the person to
whom the debt is owing.
upon transfer the insurer shall be under the same liability to the third party as he
would have been to the insured person, but if liability of insurer exceeds the
liability of the insured person to the third party, nothing will affect the rights of the
insured person against the insurer in respect of the excess, if the liability of the
insurer to the insured person is less than the liability of the insured person to the
third party, nothing shall affect the rights of the third party against the insured in
respect of the balance.
Duty to give information as to insurance- s 151
no person against whom a claim is made in respect of any liability shall on
demand by or on behalf of the person making the claim refuse to state whether or
not he was insured in respect of that liability by any policy, or would have been
insured if the insurer had not avoided or cancelled the policy, nor shall he refuse,
if he was or would have been so insured, to give particulars with respect to that
policy as were specified in the certificate of insurance issued.
the duty to give information by this section shall include a duty to allow all
contracts of insurance, receipts for premiums, and other relevant documents in
the possession or power of the person on whom the duty is so imposed to be
inspected and copies thereof to be taken.
Settlement between insurers and insured persons - s 152
no settlement made by insurer in respect of any claim which might be made by a
third party in respect of any liability shall be valid unless the third party is a party
to the settlement.

where a person insured under a policy has become insolvent, or where such
insured person is a company, a winding up order has been made or resolution for

MV Act, 1988 14
 a voluntary winding up has been passed with respect to the company, no
agreement made between insurer and insured person after the liability has been
incurred to a third party.
(better to rely on act for sections 150 - 153…complicated)

Liability without Fault (s 140 - 142)

Liability to pay compensation in certain cases on the principle of no fault - s 140
Where death or permanent disablement of any person has resulted from accident
arising out of use of MV, the owner of MV shall, be liable to pay compensation in
respect of such death or disablement
amount of compensation for death- 50k (originally it was 25k)

for permanent disablement - 25k (originally it was 12k)

the claimant shall not be required to plead and establish that the death or
permanent disablement has been made was due to any wrongful act, neglect or
default of the owner of the vehicle.
claim for compensation shall not be be defeated by reason of any wrongful act,
neglect, or default of the person in respect of whose death or permanent
disablement had been made nor shall the quantum of compensation recoverable
in respect of such death or permanent disablement be reduced on the basis of the
share of such person in the responsibility for such death or PD.
in Oriental F. & G. Ins. Co. v. Shantibhai, there was an accident on resulting in the
death of two persons. In its order dated , the Claims Tribunal allowed
compensation without going into the question of negligence of the driver or the
owner of the vehicle

Provisions as to other right to claim compensation for death or permanent

disablement - s 141
right to claim compensation shall be in addition to claim compensation in respect
thereof under any other provision of this act or any other law for the time being in
force.
claim to be disposed of as expeditiously as possible.

MV Act, 1988 15
 person liable to pay compensation under section 140 is also liable to pay
compensation in accordance with the right on the principle of fault.
Permanent Disablement - s 142

Injury or injuries involving

permanent privation of the sight of either eye or the hearing of either ear, or
privation of any member or joint

destruction or permanent impairing of the powers of any member or joint

permanent disfiguration of head or face.

Parukutty v. K.S.R.T.C
Where negligence of owner-cum-driver of autorickshaw was found to
be 70% who had died in accident. His
L.Rs. were claimants and could be
impleaded. Insurance Company could be made liable to pay compensation by
Motor Accidents Claim Tribunal on behalf of insured. Insurance Company was not
liable to pay 70% of compensation and Insurance Company was directed to
deposit the same.

offences and penalties

S 177- General provisions for punishment of offences

if no penalty provided for offence then fine 100 rupees, if second or subsequent
offence with fine of 300 rupees.
s 178 - penalty for travelling without pass or ticket and for dereliction of duty on
the part of conductor and refusal to ply contract carriage
fine to extend to 500 rupees

conductor, if fails or refuses to accept the fare when tendered, fails or refuses to
supply a ticket, or supplies an invalid ticker, or supplies a ticket of lesser value, or
wilfully or negligently fails to check pass punishable with fine upto 500 rupees
if driver refuses to carry passengers
in case of 2 or 3 wheelers - 50 rupees
in any other case - 200 rupees

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 S 179 - disobedience of orders, obstruction and refusal of information
disobeys, obstructs any person in discharge of his functions - 500 rupees

who do not supply information, wilfully withholds or gives false , if no penalty is

provided - 500 rupees or imprisonment upto 1 month or both
S 180 - allowing unauthorised persons to drive vehicles
imprisonment upto 3 months or fine upto 1k or both
s 181 - Driving vehicles in contravention section 3 or 4 -
3 months imprisonment or fine upto 1k or with both.

s 182 - offences relating to licences

a person who is disqualified for holding or obtaining a DL drives a MV in public
place, or applies for obtaining DL or applies for obtaining DL without disclosing
endorsement - imprisonment upto 3 months of fine upto 500 rupees or both
s 183 - Driving at excessive speed

in contravention of the speed limits - 400 rupees and if again convicted, with fine
which may extent to 1k
whoever causes any person employed by him or subject to his control in driving
MV in contravention of speed limits - 300 rupees and if again convicted - 500
rupees
evidence to be obtained by use of some mechanical device solely one witness
wont be sufficient.

S 184 - Driving dangerously

Whoever drives MV at a speed or in manner which is dangerous to the public,
imprisonment for six months or fine 1k for first offence and for any second or
subsequent offence within 3 years of previous offence imprisonment 2 years or
fine 2k or both.
s 185 - driving by a drunken person or by a person under influence of drugs

alcohol exceeding 30 mg per 100 ml in blood or is under influence of a drug to

such an extent as to be incapable of exercising proper control over the vehicle.
for first offence imprisonment - 6 months or fine 2k or both

MV Act, 1988 17
 for second or subsequent within 3 years - imprisonment for 2 years or fine 3k or
both.

s 186 - driving when mentally or physically unfit to drive

when a person knows he is suffering from disease or is unfit to drive and drives
for first offence fine 200 and second or subsequent fine 500 rupees
s 187 - Punishment for offences relating to accident -
imprisonment - 3 months, or fine 500 rupees

if previously convicted and again convicted - imprisonment - 6 months or fine

upto 1k or both
s 188 - Punishment for abetment of certain offences
whoever abets commissions under section 184, 185 or 186 shall be punishable for
punishment provided for that offences.
s 189- Racing and trails of speed

whoever without written consent of state govt permits or takes part in race or trial
of speed in public place - imprisonment 6 months or finr 500 rupees or both
s 190 - Using vehicle in unsafe condition
any person who drives or causes or allows to be driven in any public place a MV
or trailer, which has defect- 250 rupees if it causes accident imprisonment 3
months - or fine which may extent to 1k rupees or both.

vehicle which violates standards prescribed in relation to road safety, control of

noise and air - pollution, for first offence fine - 1k and any subsequent offence 2k.
carriage of goods which are hazardous nature to human life- first offence 3k or
imprisonment 1 year or both or for any second or subsequent offence with fine 5k
or imprisonment for 3 years or both.
s 191 - Sale of vehicle in or alteration of vehicle to condition contravening this act

punishable with 500 rupees.

S 192 - using vehicle without registration -
first offence fine upto 5k not less than 2k for a second or subsequent offence
imprisonment extend to 1 year or fine upto 10k not less than 5k or both.
s 192 A - Using vehicle without permit -

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 first offence with fine upto 5k not less than 2k for second or subsequent offences
imprisonment upto 1 year but not less than 3 months or with fine which may
extend to 10k not less 5k.
S 193 - Punishment of agents and canvassers without proper authority-
whoever engages himself as an agent or canvasser in contravention of the
provisions of section 93, first offence 1k and for subsequent imprisonment upto 6
months, or fine upto 2k or both.

s 194 - driving vehicle exceeding permissible weight -

minimum fine of 2k and additional amount of 2k per tonne of excess load. any
driver who refuses to stop or submit his vehicle for weighing after being directed,
3k fine
s 195 - Imposition of minimum fine under certain circumstances
whoever having been convicted of offence under this act or the rules made
thereunder commits similar offence on a second or subsequent occasion within 3
years of previous offence, impose fine of no less than 1/4th of maximum amount
of the fine.
s 196 - Driving uninsured vehicle -
imprisonment upto 3 months - or fine upto 1k or both
s 197 - taking vehicle without authority -

drives or takes vehicle without consent of the owner, imprisonment upto 6

months, or fine upto 500 rupees or both.
whoever unlawfully by force or threat of force or by any other form of intimidation,
seizes or exercises control of a motor vehicle, punishable imprisonment upto 3
months, or fine upto 500 rupees, or both
abets commission of any above mentioned act, shall also be deemed to have
committed the same offence
s 198 - Unauthorised interference with vehicle-
anyone without lawful authority or reasonable excuses enters or mounts on
stationary MV or tampers with brake or any part of the mechanism of a MV shall
be punishable with fine upto 100 rupees
s 199 - Offences by companies

MV Act, 1988 19
 when offence committed by a company, every person who at time the offence
was committed, was in charge of, or was responsible to, the company, for conduct
of business of company, as well as the company shall be deemed to be guilty of
contravention and shall be liable to be proceeded against and punished
accordingly
s 200 - composition of certain offences
any offence committed before or after the commencement of this Act may either
before or after institution of the prosecution, be compounded by such officers or
authorities and for such amount as the State govt may, by notification in the
official gazette, specify in this behalf.

Acts prohibited under MV act (s 110-134)

S 110 - power of central govt to make rules
width, height, length, overhang of vehicles and of loads, size and nature, MRP,
condition of tyres, brakes and steering, use of safety glasses, signalling
appliances, speed governors, emission of smoke, reduction of noise, safety belts,
handle bars of MCs etc. rules can be provided by central govt
s 111 - power of state govt to make rules
state can make rules with respect to all matters in 110 (1), other powers include
seating arrangements in public service vehicles and the protection of passengers
against the weather
prohibiting or restricting use of audible signals at certain times at certain places
prohibiting the carrying of appliances likely to cause annoyance or danger.
periodical testing and inspection of vehicles by prescribed authorities
particulars other than registration marks to be exhibited by vehicles and the
manner in which they shall be exhibited.

use of trailers in MVs

s 112 - limit of speed

MV Act, 1988 20
 no person shall drive a MV or cause or allow a MV to be driven in any public place
at a speed exceeding the maximum speed or below the minimum speech fixed for
a vehicle under this Act
state govt on behalf of central govt fix maximum speed limits or minimum speed
limits as it thinks fir for MVs or any specified class or description of MVs
s 113- Limits of weight and limitations on use

State govt may prescribe the conditions for issue of permits for transport vehicles
by state or regional transport authorities and may prohibit or restrict the use of
such vehicles in any area or route.
no personal shall driven or allow to be driven any MV which exceeds the unladen
weight specified in the certificate of registration.
s 114 - power to have vehicle weighed

Any officer of MV department require the driver to convey the vehicle to a

weighing device, may direct driver to off load excess weight at his own risk and
not to remove the vehicle or trailer from that place until the laden weight has been
reduced.
s 115 - Power to restrict the use of vehicles
state govt may prohibit or restrict use of any specified class or description of MV
or use of trailers either generally in a specified area or on a specified road.
s 116- Power to erect traffic signs
state govt or any authority under the state govt may cause or permit traffic signs
to be placed or erected in any public place for the purpose of bringing to public
notice any speed limits of section 112 or any prohibitions or restrictions imposed
under 115

traffic signs placed or erected shall be of size and colour and type as mentioned
in schedule and shall have meanings.
state govt may empower any police officer not below rank of SP to remove or
cause to remove any sign or advertisement which is so placed to obscure any
traffic sign
no person shall wilfully, alter, deface or in any way tamper, any traffic sings placed
or erected under this section

MV Act, 1988 21
 s 117- Parking places and halting stations
State govt or authority authorised in behalf of state govt may, in consultation with
local authority, determine places at which MV may stand for specified time or
indefinitely, and may determine places at which public service vehicles may stop
for a longer time than is necessary for taking up and settling down of passengers

s 118- Driving regulations

central govt may by notification in official gazette, make regulations for driving
MVs
s 119 - Duty to obey traffic signs
every driver of a MV shall drive the vehicle in conformity with any indication given
by mandatory traffic sign and in conformity with the driving regulations made by
Central govt
s 120 - Vehicles with left hand control
no person shall drive or cause or allow to be driven in any public place any motor
vehicle with a left hand steering control unless it is equipped with a mechanical or
electrical signalling device of a prescribed nature and in working order
s 121 - Signals and signalling devices,

the driver of a motor vehicle shall make such signals and on such occasions as
may be prescribed the Central govt
s 122 - Leaving vehicle in dangerous position
No person in charge of motor vehicle shall cause or allow the vehicle or any trailer
to be abandoned or to remain at rest on any public place in such a position or in
such a condition or in such circumstances as to cause or likely to cause danger or
obstruction or undue inconvenience
s 123- riding on running board, etc
no person driving or in charge of a motor vehicle shall carry any person to be
carried on the running board or otherwise than within the body of vehicle, no
person shall travel on running board or on top or on the bonnet of a motor vehicle.
New India Ass. Co. Ltd. v. Samundri Roadways Co

According to Sec. 123 of 1988 Act no personshould be carried on the running

board or otherwise than within the body of the vehicle. Therefore, if a person is

MV Act, 1988 22
 allowed to be carried by the conductor of a bus on the roof of the bus in violation
of the above-mentioned statutory provision and in contravention of the terms of
insurance policy, and such a person dies in an accident, the insurance company is
not liable to pay any compensation in respect of the same.

s 124- prohibition against travelling without pass or ticket

no person shall enter or remain in any stage carriage for the purposes of travelling
therein unless he has with him a proper pass or ticket
s 125- Obstruction of driver
no person driving a MV shall allow any person to stand or sit or place anything in
such a manner or position as to hamper the driver in his control of the vehicle

s 126- Stationary vehicles

no person driving or charge of MV shall cause or allow the vehicle to remain
stationary in any public place, unless there is in the driver’s seat a person duly
licensed to drive the vehicle or unless the mechanism has been stopped and
brake or brakes applied or such other measures taken to ensure that vehicle
cannot accidentally be put in motion.
s 127- Removal of MV abandoned or left unattended on a public place

Where any motor vehicle is abandoned or left unattended, on a public place for 10
hours or more or is parked in a place where parking is legally prohibited, its
removal by a towing service or its immobilisations may be authorised by a police
officer in uniform having jurisdiction.

s 128- Safety measures for drivers and pillion riders - no driver of a 2 wheeled
motor cycle shall carry more than one person in addition to himself on motor cycle
and no such person shall be carried otherwise than sitting on a proper seat
securely fixed to the motor cycle with appropriate security measures.
s 129 - Wearing of protective headgear-
every person driving or riding shall while in public place, wear protective
headgear conforming to the standards of Bureau of Indian Standards, provision
shall not apply to a person who is sikh, if he is while driving or riding on MC
wearing turban

MV Act, 1988 23
 s 130 - Duty to produce licence and certificate of registration
The driver of a MV in any public place , shall on demand by any police officer in
uniform, produce his licence for examination, provided he also gets a receipt if the
licence has been submitted

s 131- Duty of the Driver to take certain precautions at unguarded railway level
crossing
every driver of MV at the approach of any unguarded railway level crossing shall
cause the vehicle to stop and the driver of the vehicle shall cause the conductor
or cleaner or attendant or any other person to walk to the level crossing and
ensure no train or trolley is approaching

s 132- Duty of driver to stop in certain cases

the driver of a MV shall cause the vehicle to stop and remain stationary so long as
not exceeding 24 hours, when required to do so by any police officer not below
rank of SI in uniform or when required by any person in charge of an animal if
such person apprehends that the animal is or being alarmed by the vehicle will
become, unmanageable

s 133- Duty of owner of MV to give information

The owner of a MV or conductor or driver on demand of ay police officer
authorised in behalf of state govt give all information regarding the name and
address of, and the license held by the driver or conductor which is in his
possession or could be reasonable diligence be ascertained by him.
s 134- Duty of driver in case of accident and injury to a person

when a person is injured or any property of a third party is damaged as a result of

an accident in which MV is involved, the driver of the vehicle or other person in
charge of the vehicle shall, unless it is not praticable to do so on account of mob
fury or any other reason beyond his control, take all reasonable steps to secure
medical attention for the injured person.
give on demand by a police officer any information required by him, or , if no
police officer is present, report the circumstances of the occurence, including the
circumstances, if any for not taking reasonable steps to secure medical attention
give the following in writing to the insurer

MV Act, 1988 24
 insurance policy number and period of its validity

date, time and place of accident

particulars of the persons injured or killed in the accident

name of driver and particulars of his driving licence.

case laws

Commencement of Insurer’s liability

In National Ins. Co. Ltd. v. R.K. Paswan,
the question arose about the position of the parties if an insurance company
pleads that the vehicle involved in the accident was not insured by it. In such a
case, it has been held, that it is the primary duty of the vehicle owner to disclose
the insurance particulars of the vehicle and prima facie prove that the vehicle was
insured with a particular company, failing which the vehicle owner has to pay the
entire amount of compensation awarded in the case. it has also been held in the
case that in case of a dispute regarding the vehicle having been insured by an
insurance company, it is the duty of the Tribunal to give its findings as to whether
the vehicle was insured by the said insurance company or not.
In V. Rani v. New India Assurance Co. Ltd.,3 it has been held that the insurer
cannot avoid his liability after the issue of certificate of insurance. In this case, the
certificate of insurance was signed by the insured company’s officials on 18-2-92.
The insured vehicle met with an accident only thereafter. It was held that the
liability of the insurer had come into existence under the Motor Vehicles Act
towards the third party. The plea of the insurance company that the certificate of
insurance was wrongly granted either by reason of any mistake or fraud
committed

Insurer’s liability for third party risks-Liability for injury to certain person or
classes of persons
The Act policy covering only Third Party Risks as mentioned in
Section 95 (1939 Act) or section 147 (1988 Act) does not make the insurer liable
for the harm suffered by a passenger travelling in a private car, neither for hire nor
reward. Similarly, it also does not cover the injury to a pillion rider on a scooter. If

MV Act, 1988 25
 the owner of the vehicle so likes, he may
take such a policy which covers risks not otherwise covered under the
provisions of the Act
In Subhash Chander v. State of Haryana, it has been held that risk to a gratuitous
passenger in a private car is not required to be covered by Section 95(l)(b) (1939
Act), and, therefore, if a gratuitous passenger travelling in a jeep dies, the
insurance company cannot be made liable for the same.
In Prabhu Dayal Agarwal v. Saraswati Bai, the insurer had issued a
comprehensive policy to the owner of a car, which stipulated that the insurer shall
indemnify the insurer in the event of an accident caused by or arising out of the
use of the motor car against all sums, including claimant’s cost and expenses,
which the insured shall become legally liable to pay in respect of death of, or
bodily injury to, any person. In this case a gratuitous passenger travelling in the
car was killed. In an action by the mother of the deceased, Saraswati Bai, it was
held that since the insurer had undertaken liability wide enough to cover such a
situation, he was liable for the same.
Driving without driving licence
In Champa Devi v. Ram Sarup, it has been held by the Punjab and Haryana High
Court that the claimant’s right to compensation would not be affected by the fact
that the driver was driving without a driving licence.
in National Insurance Co. v. Prem Narain Sahu it has been held that the insurer
cannot escape liability merely on the ground that the driver was driving without a
proper licence.
liability for damage to the property of third party
In Kishori v. Chairman, Tribal Services Coop. Society Ltd.,about 125 bags of
urea, belonging to the consignee, being carried in a goods vehicle, were
destroyed having fallen in a Naala. The question was whether the goods of the
consignee were of a third party, so as to make the insurer liable. The M.P. High
Court set aside its single Bench decision and followed the decision of the Madras
High Court in United India Ins. Co. Ltd. v. Janarthiram and held that the consignee
was not a third party and, therefore, the claims Tribunal had no jurisdiction to
entertain the claim.

Insurer’s liability towards the owner of the vehicle

MV Act, 1988 26
 In Raj Chopra v. Sangara Singh, the claimant’s husband, Manohar Lal Chopra,
Project Officer, Haryana Tourism Corporation, who was travelling in a car, got
killed in an accident between his car and a truck. It was found that the accident
had occurred due to the negligence of the drivers of the car and the truck.
Regarding the matter relating to the liability of the insurance company with which
the car was insured, it was admitted that the owner of the car was Padma Rani,
whereas the insured thereof was Ghanshyam Dass Sharma. This being the
position, it was held that since the car was insured in the name of its owner, the
insurance company could not be made liable for the same. The liability in respect
of the negligence of the driver of the car, therefore, was held to be of the driver
and the owner of the car only.

MV Act, 1988 27