Government Seeks Uniform Speed Limits, Tougher Fines for Uninsured Cars and Road Offences

To bring greater clarity, compliance, and safety to India’s rapidly evolving road transport ecosystem, the Ministry of Road Transport and Highways (MoRTH) has circulated a draft of proposed amendments to the Motor Vehicles Act. These changes aim to address inconsistent speed limits, rising instances of uninsured vehicles, and gaps in driving licence renewals and regulations, particularly for repeat traffic offenders and elderly drivers. The proposed amendments are currently being shared with other central ministries for feedback before they are tabled before the Cabinet for approval.

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Current Challenge: Confusion Over Speed Limits Across States

A major concern flagged by the Centre is the lack of uniformity in speed limits across National Highways (NHs) and expressways. While the Union government sets maximum permissible speeds, currently up to 120 kmph on expressways and 100 kmph on NHs, state governments often impose lower limits, leading to confusion among drivers.

This duality has frequently resulted in motorists being fined for exceeding state-imposed limits, despite adhering to the central norms. According to the ministry, this not only undermines consistency but has also become a source of misuse and corruption by enforcement authorities. 

To correct this, the draft amendment proposes a clear division of authority: 

• The Centre will exclusively set speed limits for NHs and expressways
• States will retain the right to fix limits for state highways and local roads

The objective is to streamline enforcement, enhance road safety, and eliminate arbitrary penalties that vary by jurisdiction.

Heavy Penalties Proposed for Uninsured Vehicles

Another significant proposal in the amendment is to tighten penalties on vehicles operating without valid insurance. Currently, violators face a fine of ₹2,000 for the first offence and ₹4,000 with a possible jail term for repeat offences. 

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Under the new proposal:

• First-time offenders will be required to pay three times the base insurance premium
• Repeat offenders will be charged five times the premium

This shift from a fixed fine to a dynamic penalty based on insurance cost is intended to make the punishment financially consequential, especially for high-value vehicles. Officials said the move is aimed at curbing the rising number of uninsured vehicles, which pose risks not just to owners but to victims of accidents seeking compensation. 

Stricter Driving Licence Renewal for Offenders and the Elderly

The draft also outlines revised norms for driving licence renewal, with an emphasis on improving road discipline and safety.

Key changes proposed include:

• A mandatory driving test at the time of renewal for anyone convicted of serious offences such as over speeding, drunk driving, or dangerous driving 
• Drivers aged 55 years and above will also need to undergo a driving test when applying for licence renewal, regardless of past conduct

Currently, driving licences can be renewed without a test unless specifically ordered by the licensing authority. The amendment seeks to ensure that both high-risk individuals and elderly drivers are fit to operate vehicles, given the physical and cognitive challenges that may arise with age. 

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Regulating Aggregators and Testing Stations

The ministry is also pushing for uniform regulation of ride-hailing companies and automation in fitness testing. 

The draft includes:

• Timelines for states to implement central guidelines for regulating aggregators like Ola, Uber, and Rapido
• Mandatory timelines for states to approve Automated Testing Stations (ATS) for periodic vehicle fitness checks

These measures aim to remove bureaucratic delays and improve regulatory oversight of both private mobility operators and commercial vehicle compliance, especially in emissions and roadworthiness.

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Impact on Consumers: Clearer Rules, Tighter Enforcement

If passed, the amendments are likely to have far-reaching implications for everyday road users:

• Clarity in speed limits will make long-distance highway travel more predictable and could reduce the chances of unjustified fines. 
• Higher penalties for uninsured vehicles will encourage timely policy renewals and could improve accident compensation coverage. 
• Elderly drivers and repeat traffic offenders will face more stringent checks, which, while potentially inconvenient, aim to enhance safety for all road users. 
• The proposal also implicitly increases accountability on state governments to modernise systems and follow central directives, especially in the context of aggregator licensing and vehicle testing.

What Comes Next?

The draft amendments have been circulated to relevant ministries and departments for comments. Once internal feedback is consolidated, the road transport ministry is expected to present the proposal to the Union Cabinet for approval. Post-Cabinet clearance, the draft will be opened for public consultation before it becomes law.