Motor Vehicle Act Amendments: 12-Month Deadline For MACT Cases, Legalization Of Commercial Bike Services

Motor Vehicle Act Amendments: 12-Month Deadline For MACT Cases, Legalization Of Commercial Bike Services
NEW DELHI: The Ministry of Road Transport and Highways has proposed significant amendments to the Motor Vehicle Act, including a 12-month deadline for Motor Accident Claims Tribunals (MACTs) to resolve cases. This is part of 67 proposed changes aimed at streamlining traffic regulations and improving road safety.
A key amendment seeks to classify motorcycles under “contract carriage,” allowing ride-hailing services such as Rapido and Uber to legally use bikes for commercial transport. Currently, all vehicles are covered under contract carriage, which permits hired vehicles to transport passengers. This change will provide legal clarity for the use of motorcycles in ride-hailing services, following restrictions by several states.
In addition to motorcycles, the ministry is also revising guidelines for cab aggregators to include motorcycles, with an emphasis on enhancing passenger safety.
67 Amendments to be Presented in Winter Session
The 67 amendments are expected to be presented in the upcoming Winter Parliamentary session. Among these are new definitions for “buses of educational institutions” and a reclassification of light motor vehicles (LMVs) based on their gross weight. The draft introduces a definition for three-wheelers, a response to a recent Supreme Court case.
One significant change involves redefining “educational institution buses” as vehicles carrying more than six people, excluding the driver, and used by schools to transport students and staff. The amendment also proposes doubling penalties for traffic violations involving these buses to hold both drivers and institutions more accountable.
In response to a Supreme Court inquiry regarding whether individuals with an LMV licence can drive transport vehicles with an unladen weight of up to 7,500 kg, the government is pushing for swift parliamentary approval.
Streamlined Application Process and Underage Driving
Another amendment proposes a six-month deadline for states to process applications for cab aggregators, automated test stations (ATS), and accredited driver training centres. If states fail to meet the deadline, central government guidelines will be enforced.
To address underage driving, the ministry has proposed allowing 16- to 18-year-olds to drive motorcycles with engine capacities of up to 50cc or electric motorcycles with a maximum power of 1,500 watts and a top speed of 25 km/h.
Faster Compensation for Accident Victims
The proposed 12-month deadline for MACT cases is intended to expedite compensation for accident victims and their families. If tribunals fail to meet the deadline, they must provide written explanations. Claims submitted after the six-month limit can still be accepted if valid reasons for the delay are provided.
Additionally, the draft mandates that states consult highway authorities before lowering speed limits on national highways. Inconsistent speed limits on national highways (100 km/h) and expressways (120 km/h) have caused confusion among drivers, and the amendment seeks to address this issue.