Road Ministry Proposes MV Act Amendments: Curbing Uninsured Vehicles and Strengthening Driver's License Regulations

In a move to enhance road safety and compliance, the Ministry of Road Transport and Highways (MoRTH) is seeking amendments to the Motor Vehicles Act (MV Act) to address the rising number of uninsured vehicles and tighten regulations for driving licenses. The proposed changes aim to create a more uniform and stringent system across the country.

Tackling Uninsured Vehicles

A key focus of the proposed amendments is to reduce the number of vehicles plying the roads without valid insurance. Currently, the penalty for driving an uninsured vehicle is a fine of ₹2,000 for a first offense, which increases to ₹4,000 for subsequent offenses, along with a possible imprisonment of up to three months. The ministry proposes a significant increase in these penalties to deter violations.

Instead of a fixed fine, the new proposal suggests a dynamic penalty linked to the insurance premium. First-time offenders would be required to pay three times the base insurance premium, while repeat offenders would be charged five times the premium. This shift aims to make the penalty more financially impactful, particularly for owners of high-value vehicles. The move is intended to protect both vehicle owners and potential accident victims seeking compensation.

Stricter Driving License Rules

The proposed amendments also include stricter norms for the renewal of driving licenses. The ministry aims to improve road discipline and safety by implementing mandatory driving tests for certain categories of drivers. Individuals convicted of serious offenses, such as overspeeding, drunk driving, or dangerous driving, will be required to undergo a driving test at the time of license renewal. Additionally, drivers aged 55 years and above will also need to undergo a driving test when applying for license renewal, irrespective of their past driving record.

Uniform Speed Limits

To address the confusion arising from varying speed limits across states, the ministry has proposed that the central government set the speed limits for National Highways (NHs) and expressways, while state governments can set limits for state highways and other roads. Currently, while the Centre officially sets maximum speed limits, states often impose lower limits, leading to drivers being penalized despite adhering to central norms. The lack of uniformity has also been cited as a potential source of misuse and corruption by enforcement authorities. The proposed division of authority aims to streamline enforcement, enhance road safety, and eliminate arbitrary penalties.

Next Steps

The proposed amendments to the MV Act have been circulated to other central ministries for feedback before being presented to the Cabinet for approval. Once approved, these changes are expected to bring greater clarity, compliance, and safety to India's road transport ecosystem. The stricter penalties for uninsured vehicles and the tightened driving license rules are intended to promote responsible driving behavior and reduce the number of accidents on Indian roads.


Written By
Ishaan Gupta brings analytical depth and clarity to his coverage of politics, governance, and global economics. His work emphasizes data-driven storytelling and grounded analysis. With a calm, objective voice, Ishaan makes policy debates accessible and engaging. He thrives on connecting economic shifts with their real-world consequences.
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