TRANSPORTATION

IN INDIA

THE LAW AND ITS APPLICATION

Vaibhav B Padashetty , Krishna

Laws applicable to Motor Vehicles in India

Constitution of India

Who can Legislate:

Motor Vehicles and other mechanically propelled vehicles fall under Entry 35 of List – III.
Power to Make Laws under Art. 245 and Art. 246 r/w. Sch. VII.
3 Lists under Schedule VII – Union (List - I), State (List - II) and Concurrent (List – III). This means both Centre and State have power to legislate on matters relating to motor vehicles.

Motor Vehicles Act, 1988 r/w. Allied Rules

Consolidates law on motor vehicles

Enacted by Parliament (Union) in accordance with Entry 35 Sch. VII
Governs motor vehicles and motor vehicle related businesses in India

State Rules

Motor Vehicles Act, 1988, while a central legislation permits state governments to make rules in
However, these must be in consonance with the broad framework created by the Act.
relation to the grant of permits and registrations to vehicles**

**Sections 65 and 96 of the Act

MOTOR VEHICLES ACT, 1988
• Transportation in India is primarily governed by the Motor Vehicles Act, 1988, the Central Motor
Vehicles Rules, 1989 and various state rules.

• The Act creates two levels of regulation at the Central and State Levels.

• The Central Government governs the kinds of registrations and permits that may be granted in
relation to the intended use of the vehicle.

• The State Government governs the grant of permits to vehicles under the framework of
registrations/permits created by the Central Government and also creates licenses for operation of
such permits.

• Exception – Rent a Motor Cab/Rent a Motorcycle Schemes – License created by center and granted by state.
ROLE OF THE CENTRAL GOVERNMENT
Usage of Framework for
Motor Vehicles Insurance
for Requirements
International for Motor
Travel Vehicles

Creation of Creation of
Categories of Tribunals to
Registrations address to
and Permits claims under
for Vehicles the Act

Creation of Definition and

Framework for Central Structuring of
Regulation of Government Offences
Motor Vehicles under the Act
ROLE OF THE STATE GOVERNMENT
Creation and
Grant of Registrations
Implementation of License
andPermits created and
by the CentralGovernment
PermitConditions, including
fares

Creation of Framework
Control of Road Transport for Licenses to be
within the State granted to Transport
Businesses

Implementation

and Enforcement State Taxation of Motor

Vehicles
of Laws Created Government
by Central

Government
TRANSPORT AND NON - TRANSPORT VEHICLES
Vehicles under the Act are broadly classified into “Transport” and “Non - Transport” vehicles.

Non – Transport Vehicles

• Non – Transport on the other hand

• Transport Vehicle includes a Public relates specifically to personal use.
Service Vehicle, a goods carriage
vehicle, a private service vehicle or • A Non – Transport Vehicle may not
educational institution bus. be used as a Transport Vehicle, i.e.,
for a commercial purposes.
• A transport vehicle is a vehicle used
for carriage of passengers and goods.

Section 2(47) of the Act

PUBLIC AND PRIVATE SERVICE VEHICLES

• A Private Service Vehicle is a motor

• A Public Service Vehicle is a Motor Vehicle vehicle adapted for carriage of more than
adapted for the use of carriage of 6 passengers utilized by/ on behalf of the
passengers. owner for carriage of persons for or in
connection with his trade.
• Public Service Vehicles are generally
engaged for Hire/Reward. • A Private Service Vehicle cannot be
engaged for hire/reward and cannot be
• Includes maxi cab, motor cab, contract engaged for public purposes.
carriage and stage carriage.

Sections 2(33) and 2(35) of the Act

“ Hire or reward” refers to any form of consideration paid by the passenger for his carriage.
MOTOR CYCLES UNDER THE ACT
• A Motor Cycle is defined under the Act to mean a two – wheeled Motor Vehicle.

• Since Motor Cycles are included within the ambit of a Motor Vehicle, they may be classified as a Motor Cab if the
intended use is commercial.

• Motor Cycles would hence qualify for grant of individual contract carriage permits.

• However, most State Governments are either reluctant or have out-right refused to grant individual contract
carriage permits to Motor Cycles citing safety, security, enforcement and insurance related concerns.
INSURANCE UNDER THE ACT

• The Act requires that any motor vehicle being used in a public place in India be covered by an Insurance Policy
in accordance with the Act.

• The requirements specified under the Act are only the minimum requirements.

• Insurers generally distinguish between insurance coverage for private vehicles and commercial vehicles.

• Commercial Vehicles are required to obtain more comprehensive

insurance coverage than private vehicles.
GENERAL REQUIREMENTS FOR MOTOR VEHICLE INSURANCE
• Motor Vehicles are required to obtain insurance coverage at minimum for liability for death, bodily
harm, harm to goods, injury to third parties, damage to property of a third party.

• However, the Act requires Commercial Vehicles to also obtain coverage for death or bodily injuries
to passengers in addition to the above.

• Insurance coverage for commercial vehicles may also include insurance coverage for workman’s
compensation.
Policy