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• The legislations regarding road transport and highways in India can be sub-divided
among two heads :
• THE CARRIAGE BY ROAD • The National Highways Authority of India Act, 1988
ACT,2007
• The Control of National Highways (Land and Traffic) Act, 2002
• THE MOTOR VEHICLES ACT, • The Multimodal Transportation of Goods Act, 1993
1988
• The Motor Transport Workers Act, 1961
• THE ROAD TRANSPORT
CORPORATIONS ACT, 1950 • The Public Liability Insurance Act, 1961
THE MOTOR VEHICLES ACT, To determine their liability for loss of the goods
1988
To determine their liability to damage to goods due to negligence or any criminal acts
REPEAL
THE ROAD TRANSPORT
CORPORATIONS ACT, 1950 This act is a repealed version of The Carrier’s Act, 1865 which states Common Carriers will not be
held responsible for either loss or damage to property having value of more than 100 rupees
Criminal acts of the Common carriers or their agents will entail their liabilities to the Owner.
AMENDMENT
The common carrier shall carry harmful or hazardous commodities only after complying with
the safety measures prescribed under the enactment.
But the common carrier shall not be held liable for the losses arising due to act of God,
disturbances or disorders, war, arrest or any other legal process, ban imposed by the Central
government etc.
Source : The Gazette of India – The Carriage by Road Act – PDF, lawyerslaw.org
4
ITEM DESCRIPTION
• LEGISLATIONS FOR ROAD
OBJECTIVES The Act clearly lays out definitions for kinds of vehicles and their intended uses along
TRANSPORT with specific forms of registrations/permits to be granted to vehicles, which in turn, are
used for licensing purposes by states.
• ACTS AND LAWS IN INDIA
The Act also lays down specific requirements to be fulfilled under each registration/
permit.
REGULATION Two levels
• THE CARRIAGE BY ROAD
ACT,2007 The Central - governs the kinds of registrations and permits that may be granted in
relation to the intended use of the vehicle.
• THE MOTOR VEHICLES ACT, State Levels- governs the grant of permits to vehicles as per the Central Government
and also creates licenses for operation.
1988
Permits Licenses
• THE ROAD TRANSPORT
CORPORATIONS ACT, 1950 • A Permit is granted by a state or regional • A Operator’s License is not the same as
transport authority permitting use of a a Permit. Licenses are granted to an
vehicle as a transport vehicle. operator to CONDUCT A BUSINESS OR
OPERATE A VEHICLE
• MOTOR VEHICLES ACT, 1988 • Granted based on the INTENDED USE of • Operators must still obtain permits for
• Transportation in India is primarily a motor vehicle vehicles to be used commercially
governed by the Motor Vehicles Act, otherwise it is illegal for them to do so.
1988. CLASSIFICATION Transport Vehicles Non – Transport Vehicles
The Central Motor Vehicles Rules, 1989 Transport Vehicle includes a Public Service Relates specifically to personal use.
and various state rules.
Vehicle, a goods carriage vehicle, a private
Exception service vehicle or educational institution
Rent a MotorCab/Rent a Motorcycle bus
Schemes –License created by central • A Non – Transport Vehicle may not be
and granted by state • A transport vehicle is a vehicle used for used as a Transport Vehicle, i.e., for a
carriage of passengers and goods. commercial purposes.
Source : An Introduction to Motor Vehicles Act – slideshare, lawyerslaw.org, The Motor Vehicles Act, 1988 - PDF
5
ITEM DESCRIPTION
“CLASSIFICATION Public Service Vehicle Private Service Vehicle
A Public Service Vehicle is a Motor Vehicle • A Private Service Vehicle is a motor
adapted for the use of carriage of vehicle adapted for carriage of more than
• LEGISLATIONS FOR ROAD passengers. 6 passengers utilized by/ on behalf of the
TRANSPORT owner for carriage of persons for or in
• Public Service Vehicles are generally connection with his trade.
engaged for Hire/Reward.
• ACTS AND LAWS IN INDIA • A Private Service Vehicle cannot be
• Includes maxi cab, motor cab, contract engaged for hire/reward and cannot be
carriage and stage carriage. engaged for public purposes
Source : An Introduction to Motor Vehicles Act – slideshare, lawyerslaw.org, The Motor Vehicles Act, 1988 - PDF
6
CONTRACT CARRIAGE GOODS CARRIAGE
Source : An Introduction to Motor Vehicles Act – slideshare, lawyerslaw.org, The Motor Vehicles Act, 1988 - PDF
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• 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.
• LEGISLATIONS FOR ROAD
TRANSPORT
• Motor Vehicles are required to obtain insurance coverage at minimum for liability for death, bodily
• ACTS AND LAWS IN INDIA 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.
• THE CARRIAGE BY ROAD
ACT,2007 • Insurance coverage for commercial vehicles may also include insurance coverage for workman’s
compensation.
• THE MOTOR VEHICLES
ACT, 1988 Insurers generally distinguish between insurance coverage for private vehicles and commercial
vehicles.
WHAT IS PEER TO PEER RIDESHARING ?
• THE ROAD TRANSPORT
CORPORATIONS ACT,
• The concept of sharing a vehicle permitted solely for
1950
private use for a trip by splitting travel costs such as fuel
and toll is known as ridesharing.
Source : An Introduction to Motor Vehicles Act – slideshare, lawyerslaw.org, The Motor Vehicles Act, 1988 - PDF
8
UNDER EXISTING LAWS, PEER TO PEER RIDESHARING IS UNREGULATED AND HENCE DEEMED ILLEGAL
IN INDIA.
• Transport authorities generally view it as a violation of the permit granted to a vehicle since it is a
• LEGISLATIONS FOR ROAD private vehicle being utilised for commercial purposes without having obtained requisite permissions
TRANSPORT from the transport authorities.
• ACTS AND LAWS IN INDIA • Other than a violation of permits, State Governments as well as the Central Government are reluctant
to provide legitimacy to the idea since it poses an enforcement issue.
• THE CARRIAGE BY ROAD • Another concern is a drastic alteration to insurance requirements. Since private vehicles do not
possess the same insurance coverage that a commercial vehicle does, harm to passengers is a major
ACT,2007
concern
• In fact, a change in mindset could take place, in view of the Motor Vehicles (Amendment) Bill, 2016,
recently introduced in Parliament.
• The Bill specifically allows state governments to formulate policies that help in reduction of traffic
congestion, increasing last mile connectivity, improvement of urban transport, promotion of energy
conservation and better utilisation of transport assets.
Source : An Introduction to Motor Vehicles Act – slideshare, lawyerslaw.org, The Motor Vehicles Act, 1988 - PDF
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Extending and improving Road transport facility in any area and of providing efficient and
• THE ROAD TRANSPORT economical system of Road transport service.
CORPORATIONS ACT, 1950
The Act deals with powers of the Road Transport Corporation where, operating Road
Transport services in the State concerned, providing ancillary service, providing suitable
conditions of service.