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To promote road safety and safe driving practices, the Government of India has recently introduced the New Motor Vehicle (Amendment) Act, 2019, which came into effect from 1st September. With 63 clauses of the amendment, the Motor Vehicles Act was passed by the Lok Sabha with stricter rules and heftier penalties for violation of traffic rules and regulations.

The new rules will be a nightmare for those individuals who violate traffic rules through drunk driving, not giving way to emergency vehicles such as ambulances and fire engines, driving without a license, talking on the phone while driving and driving without valid insurance.

Updated List of Traffic Fines in India

Below is the detailed list of traffic fines for violation of traffic rules in India from 1st September 2019:

Types of Offences

New Penalty

Old Penalty

Driving without License

₹5,000 and/or community service

₹500

Drunk Driving

₹10,000 and/or 6 months of prison

₹15,000 and/or 2 years jail for the repetitive violation.

₹2,000

Overspeeding

LMV: ₹1,000- ₹2,000

MPV/HPV: ₹2,000- ₹4,000 (+ licence seizure)

₹400

Driving without Seat Belt

₹1,000 and/or community service

₹100

Driving/Riding without Insurance

₹2,000 or 3-months prison, community service

₹4,000 for a subsequent offence

₹1,000

Violating Road Regulations

₹500- ₹1000

₹100

Dangerous Driving/Riding and Jumping Red Light

₹1,000- ₹5,000 and/or 6-months to 1 year in prison, licence seizure

₹100 - ₹300

Driving/Riding While on the Mobile (Handheld)

₹5,000

₹1,000

Speeding, Racing

₹5,000 and/or 3-months prison, community service

₹10,000 for subsequent violation and up to 1 year in prison, community service

₹500

Not Giving Way to Emergency Vehicles like Ambulances, Fire Engines, etc.

₹10,000 and/or community service

₹500

Riding without Helmet (rider and pillion rider)

₹1000, and or license disqualification, community service for 3-months

₹100

Overloading Two-Wheelers

₹2,000 and license disqualification and/or 3-months of community service

₹100

Juvenile Offences

₹25,000 with 3-years prison, cancellation of registration for 1-year, juvenile ineligible for a license until 25 years of age.

-

Driving/Riding Despite Disqualification

₹10,000, and/or community service

₹500

Overboarding Passengers

₹200 for every extra passenger and/or community service

-

Driving/Riding without Ticket

₹500

₹200

Offence Committed by Enforcing Authorities Such as Offering Bribes

Twice the penalty (varies according to traffic rules violated)

-

Unauthorized Use of Vehicles Without Licence

₹1,000- ₹5,000

₹1,000

Disobedience of Orders of the Authorities

₹2,000

₹500

Vehicles without Permit

₹10,000 and/or up-to 6 months prison, community service

Up to ₹5,000

Oversized Vehicles

₹5,000 to ₹10,000 and/or community service

-

Overloading

₹20,000 + ₹2,000 for every extra tonne and/or community service

₹2,000 + ₹1,000 for every extra tonne

Driving/Riding without Licence (for Aggregators)

₹25,000 to ₹1,00,000

-

Driving/Riding without Registration

₹5,000 | ₹10,000 for subsequent offence

-

Using Horn in Silent Zone

₹2,000 | ₹4,000 for subsequent offence

-

Impact on the Insurance Sector

The changes made in the New Motor Vehicles Act, 2019 turned out to be the boon for motor insurance companies. The hefty figures have forced many riders and vehicle owners to renew insurance policies on time. For example, before this new rule, individuals were required to pay ₹ 1,000 for driving without a motor insurance policy, but now they will be required to pay Rs.2,000-4,000 for the same. 

These regulations will enhance the growth which came to a halt after the downfall in the automobile sector. Insurance Regulatory and Development Authority of India (IRDAI) is actively participating in the process and examining all the traffic violations thoroughly and linking them to the insurance. 

These new regulations are implemented in a few states for now, and experts have the opinion that this growth is not only for the time being but for a continuous process. As soon as more states are added to the program for implementing the regulations, significant growth will be witnessed. 

Conclusion

With the implementation of the New Motor Vehicles Act, 2019, it is suggested that individuals should abide by the traffic rules and avoid any penalties. To ensure that the implementation is done nicely and everyone stays safe, we must come forward and fulfil our duty as a responsible citizen and try to follow all the rules. 

Naval Goel is the founder of PolicyX.com. He is an Associate Member of the Indian Institute of Insurance`, Pune. He has been authorized by IRDA to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
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