New Delhi: The Rajya Sabha has cleared the Motor Vehicles (Amendment) Bill, 2019 that aims to improve road safety, facilitate citizens in their dealings with transport departments, strengthen rural transport, public transport and last mile connectivity through automation, computerization and online services.


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As per the new ammendment, there will be a 10 time increase in insurance compensation, from Rs 50, 000 to Rs 5 lakh.


Insurance firms have to pay claims within a month, if the victim’s family agree to accept Rs 5 lakh compensation. The Bill also increases the minimum compensation for hit and run cases from Rs 25,000 to two lakh rupees in case of death, and from Rs 12,500 to Rs 50,000 in case of grievous injury, the Bill says.


The Bill has included the driver’s attendant in 3rd Party insurance. There will be no cap on liability of insurers while the claim process has been simplified.


The Motor Vehicles (Amendment) Bill, 2019 is based on the recommendations of the Group of Transport Ministers (GoM) of States constituted by the Ministry of Road Transport & Highways.


The Bill has been passed with three government amendments and will need to go back to Lok Sabha. The Lok Sabha had already passed the Bill on the 23rd of July 2019.