What happened in 2019 – Motor Vehicle Act?


The amendments to the Motor Vehicle Act were passed by the Parliament, come into effect from September 1, 2019. The new rules may bring huge dent in the monthly budget and may cause more than the monthly fuel.

Key factors of the motors vehicles act 2019


The law instructs the Central Government to form a special motor vehicle accident fund that provides compulsory vehicle insurance to the owners.

The government has targeted to ensure:

  1. Cashless Medical treatment for the victims under the “golden hour” scheme.
  2. Monetary benefits to the next blood relations (kin) of a person who has died in a “hit and run’’ accident.
  3. Monetary compensation to the blood relation of a person who has injured badly in a “hit and run” accident
  4. Monetary compensation for other victims as identified under the new guidelines.


Under this act, the central government has the right to recall vehicles of any make or model if it creates an unreasonable safety risk or fails to meet minimum safety standards.

  1. With the recall clause, a vehicle manufacturer will be liable to:
  2. To provide full reimbursement to the vehicle owner against the recall.
  3. Substitute the recalled vehicle with a replacement vehicle that has similar or higher specifications.


The act provides compensation and cashless treatment for the accident victims under the golden hour and hit & run the scheme.

Compensation for the victims under:

  1. Minimum compensation in case of death in a hit & run case: Rs. 2 lakh.
  2. Minimum compensation in case of grievous injury in a hit & run case: Rs.  50,000.


In this act, any person helping (medical or non – medical ) to a victim, will not be filed with legal action due to the death of the victim. This is applied in the case of seriously injured victims.

However, this legal rule is based on three factors:

  1. The service provided to the victim should be in good faith
  2. The service rendered should not be based on rewards expectations, monetary benefits, appreciation, etc..,
  3. The service should be voluntary.


The main point of this act is monetary penalties or traffic violators. A majority of the states have welcomed this rule aimed at reducing traffic violations.


Be it a car or two-wheelers, getting a vehicle’s insurance policy is, mandatory. You can either buy car insurance online or through the third party insurance companies. By the implementation of this act, rules and regulations have become more strict so getting insurance cover is significant.

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