The Purpose of the MV Act,1988

 

The Purpose of the MV Act,1988

 

 Prior to the enactment of the MV Act 1988, the legal framework governing motor vehicles was based on the Motor Vehicle Act,1939 which was incorporated from the English Road Traffic Act,1930. In January 1984, a working group was constituted to review all provisions of the Motor Vehicle Act,1939 and to propose necessary amendments. This culminated in the enactment of the MV Act,1988 which has since undergone several

amendments. The Statement of Objects and Reasons of the MV

Act,1988 is extracted below for ready reference:

“2. Various Committees, like, National Transport Policy Committee, National Police Commission, Road Safety Committee, Low Powered Two - Wheelers Committee, as also the Law Commission have gone into different aspects of road transport. They have recommended updating, simplification and rationalization of this law. Several Members of Parliament have also urged for comprehensive review of the Motor Vehicles Act, 1939, to make it relevant to the modern - day requirements.

3. A Working Group was, therefore, constituted in January, 1984 to review all the provisions of the Motor Vehicles Act, 1939 and to submit draft proposals for a comprehensive legislation to replace the existing Act. This Working Group took into account the suggestions and recommendations earlier made by various bodies and institutions like Central Institute of Road Transport (CIRT), Automotive Research Association of India (ARAI), and other transport organizations including, the manufacturers and the general public, Besides, obtaining comments of State Governments on the recommendations of the Working Group, these were discussed in a specially convened meeting of Transport Ministers of all States and Union territories. Some of the more important modifications so suggested related for taking care of –

(a) the fast increasing number of both commercial vehicles

and personal vehicles in the country ;

(b) the need for encouraging adoption of higher technology in

automotive sector;

(c) the greater flow of passenger and freight with the least

impediments so that islands of isolation are not created

leading to regional or local imbalances;

(d) concern for road safety standards, and pollution-control

measures, standards for transportation of hazardous and

explosive materials;

(e) simplification of procedure and policy liberalization for

private sector operations in the road transport field ; and

(f) need for effective ways of tracking down traffic offenders.”

 As per the Statement of Objects and Reasons, the important

provisions addressed the following:

“(a) rationalization of certain definitions with additions of

certain new definitions of new types of vehicles;

(b) stricter procedures relating to grant of driving licences

and the period of validity thereof;

(c) laying down of standards for the components and parts of

motor vehicles;

(d) standards for anti-pollution control devices; (e) provision for issuing fitness certificates of vehicles also by

the authorised testing stations;

(f) enabling provision for updating the system of registration

marks;

(g) liberalised schemes for grant of stage carriage permits on

non nationalised routes, all-India Tourist permits and also

national permits for goods carriages;

(h) administration of the Solatium Scheme by the General

Insurance Corporation;

(i) provision for enhanced compensation in cases of “no fault

liability” and in hit and run motor accidents;

(j) provision for payment of compensation by the insurer to

the extent of actual liability to the victims of motor accidents

irrespective of the class of vehicles;

(k) maintenance of State registers for driving licences and

vehicle registration;

(l) constitution of Road Safety Councils.

6. The Bill also seeks to provide for more deterrent

punishment in the cases of certain offences.”

The above would suggest that the enactment of the MV Act,1988 was driven, inter alia, by the rapidly increasing number of vehicles in the country, the development of the road sector and

the need to promote the adoption of advanced technology in the

automotive sector. It is also essential to note that the Law

Commission, in particular, had made various recommendations

concerning provisions of the MV Act, 1939 and MV Act, 1988 in itsReport Nos. 859,10610,11911 and 14912. To further understand the objective of the MV Act,1988 , we may refer to the 149th Report of the Law Commission titled ‘Removing Certain Deficiencies in the Motor Vehicle Act,1988’ which noted the challenges faced by victims and their families in seeking compensation under the MV Act,1988 and the rising frequency of road accidents in the following words:-

“ The frequency of accidents caused by motor vehicles and the

pitiable plight of the victims of such accidents and dependants

have been the subject matter of comment by the Supreme Court in a number of cases. During recent years, the number of road accidents in the country have increased more alarmingly. Almost every day one finds in the newspapers, sad tales of road accidents. …. There is therefore an urgent need for streamlining the mechanism through which the victims or their legal representatives are compensated for their loss in such accidents so that they may be able to receive expeditiously an appropriate amount as compensation for the damages sustained by them. It is felt all round that victims of motor accidents and their legal representatives, where the accident is fatal, besides having grievously suffered as a result of the unfortunate event, are subjected to the agonies and uncertainties of a legal battle for a number of years for receiving the damages due to them through the process of Court. Of late, Lok Adalats have been settling the cases of such nature but it has been found that the victims or their legal representatives are compelled to be satisfied with a paltry sum out of the damages claimed by them. Such persons have no other option but to settle the dispute because they do not know for how many more years they will have to litigate for receiving the 9 Law Commission of India, ‘Claims for compensation under Chapter 8 of the Motor Vehicles Act, 1939’(85th Report,1980)

10 Law Commission of India, ‘Section 103A, Motor Vehicles Act, 1939: effect of Transfer of a Motor Vehicle on Insurance’ (106th Report,November,1984)

11 Law Commission of India, Access of Exclusive Forum for Victims of Motor Accidents under the Motor Vehicles Act, 1939 (119th Report, February,1987)

12 Law Commission of India, Removing Certain Deficiencies in the Motor Vehicles Act,1988(149th Report,1994) damages. In the backdrop of these and other related matters, the law commission has suo moto taken up the exercise of finding a solution to some of the problems relating to the Motor Vehicle Act and giving their appropriate recommendations thereon.”

The MV Act,1988 is fundamentally a social welfare legislation13

enacted with the objective of providing a mechanism for victims

and their families to seek compensation for loss or injury resulting

from road accidents. Additionally, its provisions regarding licensing and penalties for traffic violations serve the broader purpose of promoting road safety. Being a welfare legislation, it must be interpreted in a manner so as not to deprive the claimants of the benefit of the legislation. Any interpretation of its provisions must reflect the dual purpose, of not only as a mechanism for ensuring timely compensation and relief for victims of road accidents but also in promoting overall road safety.

The issue in this reference is whether an individual holding an

LMV license can legally drive a transport vehicle if it falls within

the stipulated weight limit of 7,500 kgs. The genesis of the issue

stems from disputes regarding the payment of claims by insurance companies for accidents involving ‘transport vehicles’ operated by individuals holding licenses to drive ‘light motor vehicles’. The Skandia Insurance Co. Ltd. v Kokilaben Chandravadan AIR 1987 SC 1184;

Sohan Lal Passi v Sesh Reddy AIR 1996 SC 2627question before this Court is not one of statutory interpretation but also involves concerns of road safety and public welfare. In interpreting any statute, it is always prudent to keep an eye on the object and purpose of the statute, as well as the underlying reason and the spirit behind it. However, we are conscious of not over stepping into the policy domain which is essentially the prerogative of the legislature. The legislature is uniquely positioned to examine the broader social, economic and safety considerations that underlie transportation policy and any changes to the law must be rooted in comprehensive public discourse and analysis. Having noted the broader objective of the MV Act, let us now discuss the statutory scheme.