With rise in the number of road accidents, the government is in the process of amending the Motor Vehicles Act 1988 to bring fines and challans on par with inflation, with plans to link insurance compensation for road accidents to the wholesale price index (WPI). This would almost double all fines and financial penalties that were last revised in 1994.
The plan to double fines will be across the board for all offences. “The reason is that state governments are not able to control the number of accidents through law enforcement alone and a heftier financial penalty may be a deterrent to rash and negligent driving,” a senior government official said.
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