Transport Management

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TRANSPORTATION MANAGEMENT
1. Content Index
2. Chapter 1
CONTENT
3. Chapter 2
CHAPTER 1: TRANSPORTATION MANAGEMENT
4. Chapter 3
5. Chapter 4  Definition of Transportation Management
 three key processes of transportation management
6. Chapter 5  transport
 meaning of transport
 importance of transport
 modes of transport
 land transport
 water transport
 air transport
CHAPTER 2: MOTOR VEHICLES ACT 1988

 tax information
 private vehicles
 transport vehicles
 additional tax on goods vehicle
 for contract carriages
 driving license
 licensing of drivers of motor vehicles
 procedure for registration of new vehicle
| CHAPTER 1 1
< Previous Page Next Page >
 interstate national permits

1. Content Index  traffic rules
2. Chapter 1  how to get a learner‟s license
 procedure for applying for permanent license
3. Chapter 2  basic rules of the road
4. Chapter 3  know your signs
 some basic precautions to avoid accidents
5. Chapter 4  tips for emergencies
6. Chapter 5  police note
CHAPTER 3: OFFENCES PUNISHABLE UNDER MOTOR VEHICLES ACT

 Over Speed
 No Racing In A Public Road
 Dangerous Driving
 Drunken Driving
 Don‟t Leave Your Vehicle Dangerously
 Your Duty In Case Of Causing An Accident With Injury To A Person
 Unattended Vehicle Beware
 For The Attention Of Driving License Holder
CHAPTER 4: IMPORTANCE OF INSURANCE

 Motorcycle Insurance
| CHAPTER 1 2
 Vehicle Insurance
1. Content Index
 Third Party Insurance
2. Chapter 1
 What is Third Party Insurance?
3. Chapter 2  Salient Features of Third Party Insurance
4. Chapter 3  Historical Background of third Party Insurance
 Legal defense available to the Insurance Companies towards third party
5. Chapter 4  Driving license
 Relevant Provisions of Motor Vehicles Act, 1988
6. Chapter 5
 Insurance Companies have been allowed no other defense
 Section152. Settlement between insurers and insured persons
 Nature and Extent of Insurer‟s Liability (section 147)
 The policy of insurance must cover
 Insurer‟s liability to Vehicle-owner
 Liability in respect of damage to property
 Liability of Insurer beyond the limits mentioned in the Act
CHAPTER 5: MOTOR INDUSTRIES COMPANY

 Scope of Motor Industries Company:
 Products of Motor Industries Company:
 Production Units of Motor Industries Company:
 Awards won by Motor Industries Company:
| CHAPTER 1 3
CHAPTER 1
1. Content Index Transportation Management
2. Chapter 1
3. Chapter 2 Definition
4. Chapter 3
A Transportation Management is a system designed to manage transportation
5. Chapter 4
operations.
6. Chapter 5
In more recent times, we have seen that the Transport Management (TMS) systems are
being offered in many different types of licensing arrangements. These different
arrangements have given shippers who otherwise would not be able to afford sophisticated
software the opportunity to utilize TMS to better manage this vital function. The 3 primary
offerings are:
1. On-Premise Licensing (traditional purchased license)

2. Hosted (remote)
3. On-Premise Hosted Licensing (a blend of 1 & 2)
Additionally, we are seeing that many software providers have either been acquired
| CHAPTER 1 4
or merged with traditional supply chain management consultancies and are now offering
1. Content Index
shippers "blended" managed and software services as an outsourced process.
2. Chapter 1
3. Chapter 2
A new business model rapidly gaining steam is for TMS system providers to provide
4. Chapter 3
truck capacity as a blended solution. Traditionally, TMS providers provided software and
5. Chapter 4
3PL's / brokers provided freight capacity (trucks). Recently, companies have started to carve
6. Chapter 5
out a niche by providing their TMS system for free, and use freight capacity fulfillment as a
value added service. This gives customers a solution to their two main problems: low-cost
software and flexible shipping. Moreover, when this blended solution is accessed through
hosted, web-based technology, it allows instant real-time access from anywhere in the world
to both the TMS and the physical asset (truck / train / plane / ship) needed to transport the
shipper's product(s).
TMS usually "sits" between an ERP or legacy order processing and

warehouse/distribution module. Atypical scenario would include both inbound (procurement)
and outbound (shipping) orders to be evaluated by the TMS Planning Module offering the
user various suggested routing solutions. These solutions are evaluated by the user for
reasonableness and are passed along to the transportation provider analysis module to
| Transportation Management 5
select the best mode and least cost provider. Once the best provider is selected, the solution
1. Content Index
typically generates a "pick list" or a type of output that is passed to the
2. Chapter 1
warehouse/distribution module for picking and loading.
3. Chapter 2
4. Chapter 3
Transportation Management Systems manage three key processes of
5. Chapter 4
transportation management:
6. Chapter 5
1. Planification and Decision
TMS will define the most efficient transport schemes according to given parameters, which
have a lower or higher importance according to the user policy: transport cost, shorter lead-
time, fewer stops possible to insure quality, flows regrouping coefficient…
2. Transport follow-up
TMS will allow following any physical or administrative operation regarding

transportation: traceability of transport event by event (shipping from A, arrival at B, customs
clearance…), editing of reception, custom clearance, invoicing and booking documents,
sending of transport alerts (delay, accident, non-forecast stops…)

1. Content Index
2. Chapter 1
3. Measurement
3. Chapter 2
4. Chapter 3
 TMS have or need to have a Logistics KPI reporting function for transport.
5. Chapter 4
 Various functions of a TMS:
6. Chapter 5
 Planning and optimizing of terrestrial transport rounds
 Transportation mode and carrier selection
 Management of air and maritime transport
 Real time vehicles tracking
 Service quality control
 Vehicle Load and Route optimization
 Transport costs and scheme simulation
 Shipment batching of orders
 Cost control, KPI (Key performance indicators) reporting and statistics
o Typical KPIs include but not limited to:
1. % of On Time PickUp or Delivery Performance relative to requested
2. Cost Per Metric - mile; km; Weight; Cube; Pallet
1. Content Index
Transport
2. Chapter 1
3. Chapter 2
We use various products in our daily life. But do we know where are they produced?
4. Chapter 3
Many of them are produced at different places far away from our locality. So how do we get
5. Chapter 4
them at our place? These are carried on from all those places through rail, road or air and
6. Chapter 5
are made available to us at our locality. You must have seen trucks, tempo, bullock carts
etc., which carry products or even raw materials from one place to another. Similarly, you
also must have seen people traveling from one place to another by buses, trains, cars,
scooters, rickshaws, cycles, etc. This movement of goods and individuals is very important
in business. Because of this, raw materials reach the place of manufacture, finished
products reach the place of sale or consumption, individuals move around to manage the
business, etc. In this lesson, let us learn how goods and passengers move from one place to
another.
Meaning of Transport
Transport refers to the activity that facilitates physical movement of goods as well as
individuals from one place to another. In business, it is considered as an auxiliary to trade,

1. Content Index
that means, it supports trade and industry in carrying raw materials to the place of
2. Chapter 1
production and distributing finished products for consumption. Individuals or business firms
3. Chapter 2
that engage Business Studies themselves in such activities are called transporters.
4. Chapter 3
Generally, transporters carry raw material, finished products, passengers, etc. from one
5. Chapter 4
place to another. So it removes the distance barrier. Now-a-days goods produced at one
6. Chapter 5
place are readily available at distant places. People move freely throughout the world
because of transport. It is associated with every step of our life. Without transport, we, as
well as business units cannot move a singe step.
Importance of Transport
Followings are the points of importance of transport.
a. Makes available raw materials to manufacturers or producers: Transport makes it possible
to carry raw materials from places where they are available, to places where they can be
processed and assembled into finished goods.
b. Makes available goods to customers: Transport makes possible movement of goods from
one place to another with great ease and speed. Thus, consumers spread in different parts
of the country have the benefit of consuming goods produced at distant places.
1. Content Index
2. Chapter 1
c. Enhances standard of living: Easy means of transport facilitates large-scale production at
3. Chapter 2
low costs. It gives consumers the choice to make use of different quantities of goods at
4. Chapter 3
different prices. So it raises the standard of living of the people.
5. Chapter 4
6. Chapter 5
d. Helps during emergencies and natural calamities: In times of national crisis, due to war or
internal disturbance, transport helps in quick movement of troops and the supplies needed in
the operation.
e. Helps in creation of employment: Transport provides employment opportunity to

individuals as drivers, conductors, pilots, cabin crew, captain of the ship, etc. who are
directly engaged in transport business. It also provides employment to people indirectly in
the industries producing various means of transport and other transport equipments.
Transport People can also provide repairing and maintenance services by opening service
centers at convenient locations.
f. Helps in labor mobility: Transport helps a lot in providing mobility to workers.
You may be aware that people from our country go to foreign countries to work in different
1. Content Index
industries and factories. Foreigners also come India to work. In India, people also move from
2. Chapter 1
one part to another in search of work. Similarly, it is not always possible to have workers
3. Chapter 2
near the factory. Most industries have their own transport system to bring the workers from
4. Chapter 3
where they reside to the place of work.
5. Chapter 4
6. Chapter 5
g. Helps in bringing nations together: Transport facilitates movement of people from one
country to another. It helps in exchange of cultures, views and practices between the people
of different countries. This brings about greater understanding among people and
awareness about different countries. Thus, it helps to promote a feeling of international
brotherhood.
Modes of Transport
We find that basically transport is possible through land, air or water, which are called
the different modes of transport. On land we use trucks, tractors, etc., to carry goods; train,
bus, cars etc. to carry passengers. In air, we find airplanes, helicopters to carry passengers
as well as goods. Similarly in water we find ships, steamers, etc., to carry goods and
passengers. All these are known as various means of transport.

1. Content Index
2. Chapter 1
The modes of transport can be broadly divided into three categories: Land transport,
3. Chapter 2
Water transport and Air transport.
4. Chapter 3
5. Chapter 4
Land Transport
6. Chapter 5
Land transport refers to activities of physical movement of goods and passengers on

land.
This movement takes place on road, rail, rope or pipe. So land transport may further be
divided into Road transport, Rail transport, Ropeway transport, pipeline transport. Let us
Know the details about each of them.
a. Road Transport
Roads are the means that connect one place to another on the surface of the land.
You must have seen roads in your village, in towns and cities. Not all of them look alike.
Some of them are made of sand and some may be of chips and cement or coaltar. You find
different vehicles plying on roads like bullock carts, cycles, motorcycles, cars, truck, buses,
1. Content Index
etc.
2. Chapter 1
3. Chapter 2
All of these constitute different means of road transport. The means of road transport
4. Chapter 3
may be divided into three types: -
5. Chapter 4
i. Man driven;
6. Chapter 5
ii. Animal driven; and
iii. Motor driven.
You might have seen individuals carrying goods on their head or back, in bicycles or
on thelas, move from one place to other. People also ride a bicycle or use rickshaw to travel
short distances. We also find animal driven vehicles like carts (drawn by bullocks, camels,
horses, donkeys, etc.) used in rural areas to carry crops, straw, fodder and sometimes even
people. Sometimes even animals are directly used to carry goods from one place to another.
In areas, which are normally covered with snow throughout the year, we find sledges pulled
by dogs used to carry both passengers and goods.
Compared with man driven and animal-driven means of road transport, motor driven
means of transport have become more important over the years. This is due to their speedy
1. Content Index
movement and larger carrying capacity. Extensions of roads to every corner of the country
2. Chapter 1
have also enhanced the use of motor driven transport. The types of motor vehicles used to
3. Chapter 2
carry goods and passengers include auto-rickshaws, scooters, vans, buses, tempos and
4. Chapter 3
trucks, etc. In Kolkata, tramway also forms part of road transport for carrying passengers.
5. Chapter 4
6. Chapter 5
Advantages of Road transport
Road transport has the following advantages.

(i) It is a relatively cheaper mode of transport as compared to other modes.
(ii) Perishable goods can be transported at a faster speed by road carriers over a short
distance.
(iii) It is a flexible mode of transport as loading and unloading is possible at any destination.
It provides door-to-door service.
(iv) It helps people to travel and carry goods from one place to another, in places which are
not connected by other means of transport like hilly areas.

1. Content Index
2. Chapter 1
Limitations of Road transport
3. Chapter 2
4. Chapter 3
It has the following limitations.
5. Chapter 4
6. Chapter 5
(i) Due to limited carrying capacity road transport is not economical for long distance
transportation of goods.
(ii) Transportation of heavy goods or goods in bulk by road involves high cost.
(iii) It is affected by adverse weather conditions. Floods, rain, landslide, etc., sometimes
create obstructions to road transport.
b. Rail transport
Transportation of goods and passengers on rail lines through trains is called rail
transport. It occupies an important place in land transport system of our country and is the
most dependable mode of transport to carry goods and passengers over a long distance.
1. Content Index
Besides long distance, local transport of passengers is also provided by local trains or
2. Chapter 1
metro-rail in some metropolitan cities. Rail transport is available throughout the country
3. Chapter 2
except some hilly or mountainous regions. In India two types of trains are found. One is
4. Chapter 3
passenger train and other is goods train. While passenger trains carry both human beings
5. Chapter 4
and a limited quantity of goods, the goods trains are exclusively used for carrying goods
6. Chapter 5
from one place to another. These trains are driven by rail engines and they use steam,
diesel or electric power to move. Let us now discuss the advantages and limitations of rail
transport.
Advantages of Rail transport
(i) It is a convenient mode of transport for traveling long distances.

(ii) It is relatively faster than road transport.
(iii) It is suitable for carrying heavy goods in large quantities over long distances.
(iv) Its operation is less affected by adverse weathers conditions like rain, floods, fog, etc.
Limitations of Railway transport
(i) It is relatively expensive for carrying goods and passengers over short distances.
1. Content Index
(ii) It is not available in remote parts of the country.
2. Chapter 1
(iii) It provides service according to fixed time schedule and is not flexible for loading or
3. Chapter 2
unloading of goods at any place.
4. Chapter 3
(iv) It involves heavy losses of life as well as goods in case of accident.
5. Chapter 4
6. Chapter 5
c. Pipelines transport
In modern times, pipelines are used for various purposes. Water supply to residential and
commercial areas is carried on with the help of pipeline. Petroleum and natural gas are also
transported from one place to another through pipelines. This is the most convenient as well
as economical mode of transport for petroleum as well as natural gas in comparison to road
and rail transport, provided the volume to be transported is large. But the cost of installation
and maintenance requires large capital investment.
d. Ropeway transport
Ropeway refers to a mode of transport, which connects two places on the hills, or
across a valley or river. In the hilly areas, trolleys move on wheels connected to a rope and
are used for carrying passengers or goods, especially building materials, food, etc. The
1. Content Index
famous “Uran Khatola Jagdamba” in Gujarat that carries pilgrims to the temple is an
2. Chapter 1
example of ropeway transport, which carries more than 100 passengers at a time.
3. Chapter 2
4. Chapter 3
Water transport
5. Chapter 4
6. Chapter 5
Water transport refers to movement of goods and passengers on waterways by using
various means like boats, steamers, launches, ships, etc. With the help of these means
goods and passengers are carried to different places, both within as well as outside the
country. Within the country, rivers and canals facilitate the movement of boats, launches,
etc. Since the goods and passengers move inside the country, this type of transport is called
inland water transport. When the different means of transport are used to carry goods and
passengers on the sea route it is termed as ocean transport. Let us know further about these
two types of water transport.
Ropeway transport Man driven Ropes

- Head or back of human being
- Carts drawn by man
- Thelas (push carts)

1. Content Index
- Bicycle
2. Chapter 1
- Rickshaw Animal driven
3. Chapter 2
- Carts drawn by animals
4. Chapter 3
- Sledge
5. Chapter 4
- Animal Motor driven
6. Chapter 5
- Scooter and motor cycle
- Auto rickshaw
- Car
- Van
- Bus Rail transport
- Passenger train
- Goods train Pipeline transport Pipes Road transport
Different Means of water Transport
I. Inland water transport

Inland water transport use boats, launches, barges, streamers, etc., to carry goods and
passengers on river and canal routes. These routes are called inland waterways and are
1. Content Index
used in domestic or home trade to carry bulky goods. Passenger transport through
2. Chapter 1
waterways are not so popular in our country. Inland water transport system exists only
3. Chapter 2
in few states like. West Bengal, Andhra Pradesh, Assam, Tamil Nadu, etc.
4. Chapter 3
5. Chapter 4
II. Ocean transport
6. Chapter 5
Ocean transport refers to movement of goods and passengers with the help of ships
through sea or ocean waterways. It plays an important role in the development of
international trade. It is also used for transporting goods and passengers in the coastal
areas. Ocean transport has its fixed route, which links almost all the countries of the world.
Sea transport may be of the following two types.
i. Coastal Shipping - In this transport, ships ply between the main ports of a country. This
helps in home trade, and also in carrying passengers within the country.
ii. Overseas shipping - In this transport, ships ply between different countries separated by
sea or ocean. It is mainly used for promotion and development of international trade. It is
1. Content Index
economical means of transport to carry heavy machines and goods in bulk. Overseas
2. Chapter 1
transport is carried out on fixed routes, which connect almost all the countries. In ocean
3. Chapter 2
transport, different types of ships are used to carry passengers and goods.
4. Chapter 3
5. Chapter 4
These may be classified as under
6. Chapter 5
a. Liners - A liner is a passenger or cargo vessel, which belongs to a regular

shipping company. These ships ply over a fixed route according to a
prescribed schedule or timetable.
b. Tramps - A tramp is a cargo ship, which does not make regular trips but
Plies whenever cargo is offered to it. It does not follow a fixed route or a
Prescribed timetable like that of liners.
Advantages of water transport
Water Transport has the following advantages:

1. Content Index
a. It is a relatively economical mode of transport for bulky and heavy goods.
2. Chapter 1
b. It is a safe mode of transport with respect to occurrence of accidents.
3. Chapter 2
c. The cost of maintaining and constructing routes is very low as most of them are naturally
4. Chapter 3
made.
5. Chapter 4
d. It promotes international trade.
6. Chapter 5
Limitations of water transport
Water transport has the following limitations.

i. The depth and navigability of rivers and canals vary and thus, affect operations of
different transport vessels.
ii. It is a slow moving mode of transport and therefore not suitable for transport of
perishable goods.
iii. It is adversely affected by weather conditions.
iv. Sea transport requires large investment on ships and their maintenance.
Different Means Water Transport:
Inland transport Ocean transport

1. Content Index
Means Boats, Steamers, Barges, Launches Ships, Tankers, Submarines.
2. Chapter 1
3. Chapter 2
Air transport
4. Chapter 3
5. Chapter 4
This is the fastest mode of transport. It carries goods and passengers through
6. Chapter 5
airways by using different aircrafts like passenger aircraft, cargo aircraft, helicopters, etc.
Besides passengers it generally carries goods that are less bulky or of high value. In hilly
and mountainous areas where other mode of transport is not accessible, air transport is an
important as well as convenient mode. It is mostly used for transporting goods and
passengers during natural calamities like earthquake and floods, etc. During war, air
transport plays an important role in carrying soldiers as well as supplies to the required
areas. Air transport may be classified as domestic and international air transport. While
domestic air transport mainly facilitates movement within the country, international air
transport is used for carrying goods and passengers between different countries. Air
transport is carried out in fixed air routes, which connect almost all the countries.
Advantages of Air transport
1. Content Index
It has the following advantages.
2. Chapter 1
i. It is the fastest mode of transport. (Not an advantage)
3. Chapter 2
ii. It is very useful in transporting goods and passengers to the area, which are not
4. Chapter 3
accessible by any other means.
5. Chapter 4
iii. It is the most convenient mode of transport during natural calamities.
6. Chapter 5
iv. It provides vital support to the national security and defense.
Limitations of air transport
It has the following limitations.

i. It is relatively more expensive mode of transport.
ii. It is not suitable for transporting heavy and bulky goods.
iii. It is affected by adverse weather conditions.
iv. It is not suitable for short distance travel.
v. In case of accidents, it results in heavy losses of goods, property and life.
Different Means Air Transport
1. Content Index
Domestic air transport International air transport, Means Aeroplanes, Helicopters Aeroplanes
2. Chapter 1
3. Chapter 2
CHAPTER 2
4. Chapter 3 MOTOR VEHICLES ACT 1988
5. Chapter 4
An Act to consolidate and amend the law relating to motor vehicles. BE it enacted by
6. Chapter 5
Parliament in the Thirty-ninth Year of the Republic of India as follows: CHAP PRELIMINARY
CHAPTER I PRELIMINARY
1. Short title, extent and commencement, (1) This Act may be called the Motor Vehicles Act,
1988. (2) It extends to the whole of India. (3) It shall come into force on such date1* as the
Central Government may, by notification in the Official Gazette, appoint; and different dates
may be appointed for different State and any reference in this Act to the commencement of
this Act shall, in relation to a State, be construed as a reference to the coming into force of
this Act in that State.
2. Definitions: In this Act, unless the context otherwise requires,--
| CHAPTER 2 25
(1) "Area", in relation to any provision of this Act, means such area as the State
1. Content Index
Government may, having regard to the requirements of that provision, specify by
2. Chapter 1
notification in the Official Gazette;
3. Chapter 2
4. Chapter 3
(2) "Articulated vehicle" means a motor vehicle to which a semi-trailer is attached;
5. Chapter 4
6. Chapter 5
(3) "Axle weight" means in relation to an axle of a vehicle the total weight transmitted
by the several wheels attached to that axle to the surface on which the vehicle rests;
(4) "Certificate of registration" means the certificate issued by a competent authority

to the effect that a motor vehicle has been duly registered in accordance with the
provisions of Chapter IV;
(5) "Conductor", in relation to a stage carriage, means a person engaged in collecting

fares from passengers, regulating their entrance into, or exit from, the stage carriage
and performing such other functions as may be prescribed;
(6) "Conductor‟s license" means the license issued by a competent authority under
| MOTOR VEHICLES ACT 1988 26

Chapter III authorizing the person specified therein to act as a conductor;

1. Content Index
2. Chapter 1
(7) "Contract carriage" means a motor vehicle which carries a passenger or
3. Chapter 2
passenger or passengers for hire or reward and is engaged under a contract, whether
4. Chapter 3
expressed or implied, for the use of such vehicle as a whole for the carriage of
5. Chapter 4
passengers mentioned therein and entered into by a person with a holder of a permit
6. Chapter 5
in relation to such vehicle or any person authorized by him in this behalf on a fixed or
an agreed rate or sum-- (a) on a time basis, whether or not with reference to any
route or distance; or (b) from one point to another, and in either case, without
stopping to pick up or set down passengers not included in the contract anywhere
during the journey, and includes-- (i) a maxi cab; and (ii) a motor cab notwithstanding
that separate fares are charged for its passengers;
(8) "Dealer" includes a person who is engaged-- (a) in the manufacture of motor
vehicles; or (b) in building bodies for attachment to chassis; or (c) in the repair of
motor vehicles; or (d) in the business of hypothecation, leasing or hire- purchase of
motor vehicle;

(9) "Driver" includes, in relation to a motor vehicle which is drawn by another motor
1. Content Index
vehicle, the person who acts as a steersman of the drawn vehicle;
2. Chapter 1
3. Chapter 2
(10) "Driving license" means the license issued by a competent authority under
4. Chapter 3
Chapter II authorizing the person specified therein to drive, otherwise than as a
5. Chapter 4
learner, a motor vehicle or a motor vehicle of any specified class or description;
6. Chapter 5
(11) "Educational institution bus" means an omnibus, which is owned by a college,

school or other educational institution and used solely for the purpose of transporting
students or staff of the educational institution in connection with any of its activities;
(12) "Fares" includes sums payable for a season ticket or in respect of the hire of a
contract carriage;
(13) "Goods" includes live-stock, and anything (other than equipment ordinarily used
with the vehicle) carried by a vehicle except living persons, but does not include
luggage or personal effects carried in a motor car or in a trailer attached to a motor
car or the personal luggage of passengers traveling in the vehicle;

1. Content Index
(14) "Goods carriage" means any motor vehicle constructed or adapted for use solely
2. Chapter 1
for the carriage of goods, or any motor vehicle not so constructed or adapted when
3. Chapter 2
used for the carriage of goods;
4. Chapter 3
5. Chapter 4
(15) "Gross vehicle weight" means in respect of any vehicle the total weight of the
6. Chapter 5
vehicle and load certified and registered by the registering authority as permissible for
that vehicle;
(16) "Heavy goods vehicle" means any goods carriage the gross vehicle weight of
which, or a tractor or a road-roller the unladen weight of either of which, exceeds
12,000 kilograms;
(17) "Heavy passenger motor vehicle" means any public service vehicle or private
service vehicle or educational institution bus or omnibus the gross vehicle weight of
any of which, or a motor car the unladen weight of which, exceeds 12,000 kilograms;
(18) "Invalid carriage" means a motor vehicle specially designed and constructed, and

not merely, adapted, for the use of a person suffering from some physical defect or
1. Content Index
disability, and used solely by or for such a person;
2. Chapter 1
3. Chapter 2
(19) "Learner's license" means the license issued by a competent authority under
4. Chapter 3
Chapter II authorizing the person specified therein to drive as a learner, a motor
5. Chapter 4
vehicle or a motor vehicle of any specified class or description;
6. Chapter 5
(20) "Licensing authority" means an authority empowered to issue licenses under

Chapter II or, as the case may be, Chapter III;
(21) "Light motor vehicle" means a transport vehicle or omnibus the gross vehicle
weight of either of which or a motor car or tractor or road-roller the unladen weight of
any of which, does not exceed 7,500 kilograms;
(22) "Maxi cab" means any motor vehicle constructed or adapted to carry more than
six passengers, but not more than twelve passengers, excluding the driver, for hire or
reward;

(23) "Medium goods vehicle" means any goods carriage other than a light motor
1. Content Index
vehicle or a heavy goods vehicle;
2. Chapter 1
3. Chapter 2
(24) "Medium passenger motor vehicle" means any public service vehicle or private
4. Chapter 3
service vehicle, or educational institution bus other than a motor cycle, invalid
5. Chapter 4
carriage, light motor vehicle or heavy passenger motor vehicle;
6. Chapter 5
(25) "Motor cab" means any motor vehicle constructed or adapted to carry not more
than six passengers excluding the driver for hire or reward;
(26) "Motor car" means any motor vehicle other than a transport vehicle, omnibus,
road-roller, tractor, motor cycle or invalid carriage;
(27) "Motor cycle" means a two-wheeled motor vehicle, inclusive of any detachable
side-car having an extra wheel, attached to the motor vehicle;
(28) "Motor vehicle" or "vehicle" means any mechanically propelled vehicle adapted
for use upon roads whether the power of 1 Subs. & ins. by Act. 580 propulsion is

transmitted thereto from an external or internal source and includes a chassis to

1. Content Index
which a body has not been attached and a trailer; but does not include a vehicle
2. Chapter 1
running upon fixed rails or a vehicle of a special type adapted for use only in a factory
3. Chapter 2
or in any other enclosed premises or a vehicle having less than four wheels fitted with
4. Chapter 3
engine capacity of not exceeding thirty-five cubic centimeters;
5. Chapter 4
6. Chapter 5
(29) "Omnibus" means any motor vehicle constructed or adapted to carry more than
six persons excluding the driver;
(30) "Owner" means a person in whose name a motor vehicle stands registered, and
where such person is a minor, the guardian of such minor, and in relation to a motor
vehicle which is the subject of a hire-purchase, agreement, or an agreement of lease
or an agreement of hypothecation, the person in possession of the vehicle under that
agreement;
(31) "Permit" means a permit issued by a State or Regional Transport Authority or an

authority prescribed in this behalf under this Act authorizing the use of a motor vehicle
as a transport vehicle;

1. Content Index
(32) "Prescribed" means prescribed by rules made under this Act;
2. Chapter 1
3. Chapter 2
(33) "Private service vehicle" means a motor vehicle constructed or adapted to carry
4. Chapter 3
more than six persons excluding the driver and ordinarily used by or on behalf of the
5. Chapter 4
owner of such vehicle for the purpose of carrying persons for, or in connection with,
6. Chapter 5
his trade or business otherwise than for hire or reward but does not include a motor
vehicle used for public purposes;
(34) "Public place" means a road, street, way or other place, whether a thoroughfare
or not, to which the public have a right of access, and includes any place or stand at
which passengers are picked up or set down by a stage carriage;
(35) "Public service vehicle" means any motor vehicle used or adapted to be used for
the carriage of passengers for hire or reward, and includes a maxicab, a motorcab,
contract carriage, and stage carriage;
(36) "Registered axle weight" means in respect of the axle of any vehicle, the axle

weight certified and registered by the registering authority as permissible for that axle;
1. Content Index
2. Chapter 1
(37) "Registering authority" means an authority empowered to register motor vehicles
3. Chapter 2
under Chapter IV;
4. Chapter 3
5. Chapter 4
(38) "Route" means a line of travel which specifies the highway which may be
6. Chapter 5
traversed by a motor vehicle between one terminus and another;
(39) "Semi-trailer" means a trailer drawn by a motor vehicle and so constructed that a
part of it is super-imposed on, and a part of its weight is borne by, the drawing
vehicle; 581
(40) "Stage carriage" means a motor vehicle constructed or adapted to carry more
than six passengers excluding the driver for hire or reward at separate fares paid by
or for individual passengers, either for the whole journey or for stages of the journey;
(41) "State Government" in relation to a Union territory means the Administrator

thereof appointed under article 239 of the Constitution;

1. Content Index
(42) "State transport undertaking" means any undertaking providing road transport
2. Chapter 1
service, where such undertaking is carried on by,-- (i) the Central Government or a
3. Chapter 2
State Government; (ii) any Road Transport Corporation established under section 3 of
4. Chapter 3
the Road Transport Corporations Act, 1950; (64 of 1950.) (iii) any municipality or any
5. Chapter 4
corporation or company owned or controlled by the Central Government or one or
6. Chapter 5
more State Governments, or by the Central Government and one or more State
Governments. Explanation.--For the purposes of this clause, "road transport service"
means a service of motor vehicles carrying passengers or goods or both by road for
hire or reward;
(43) "Tourist vehicle" means a contract carriage constructed or adapted and equipped
and maintained in accordance with such specifications as may be prescribed in this
behalf;
(44) "Tractor" means a motor vehicle which is not itself constructed to carry any load
(other than equipment used for the purpose of propulsion); but excludes a road-roller;

(45) "Traffic signs" includes all signals, warning sign posts, direction posts, markings
1. Content Index
on the road or other devices for the information, guidance or direction of drivers of
2. Chapter 1
motor vehicles;
3. Chapter 2
4. Chapter 3
(46) "Trailer" means any vehicle, other than a semi-trailer and a side-car, drawn or
5. Chapter 4
intended to be drawn by a motor vehicle;
6. Chapter 5
(47) "Transport vehicle" means a public service vehicle, a goods carriage, an

educational institution bus or a private service vehicle;
(48) "unladen weight" means the weight of a vehicle or trailer including all equipment
ordinarily used with the vehicle or trailer when working, but excluding the weight of a
driver or attendant; and where alternative parts or bodies are used the unladen weight
of the vehicle means the weight of the vehicle with the heaviest such alternative part
or body;
(49) "weight" means the total weight transmitted for the time being by the wheels of a
vehicle to the surface on which the vehicle rests, 582 CHAP LICENSING OF

DRIVERS OF MOTOR VEHICLES CHAPTER II LICENSING OF DRIVERS OF

1. Content Index
MOTOR VEHICLES
2. Chapter 1
3. Chapter 2
3. Necessity for driving license. (1) No person shall drive a motor vehicle in any public place
4. Chapter 3
unless he holds an effective driving license issued to him authorizing him to drive the
5. Chapter 4
vehicle; and no person shall so drive a transport vehicle [other than a motor cab hired for his
6. Chapter 5
own use or rented under any scheme made under sub- section (2) of section 75] unless his
driving license specifically entitles him so to do. (2) The conditions subject to which sub-
section (1) shall not apply to a person receiving instructions in driving a motor vehicle shall
be such as may be prescribed by the Central Government.
4. Age limit in connection with driving of motor vehicles. (1) No person under the age of
eighteen years shall drive a motor vehicle in any public place: Provided that a motor cycle
without gear may be driven in a public place by a person after attaining the age of sixteen
years. (2) Subject to the provisions of section 18, no person under the age of twenty years
shall drive a transport vehicle in any public place. (3) No learner's license or driving license
shall be issued to any person to drive a vehicle of the class to which he has made an
application unless he is eligible to drive that class of vehicle under this section.

1. Content Index
5. Responsibility of owners of motor vehicles for contravention of sections 3 and 4. No owner
2. Chapter 1
or person in charge of a motor vehicle shall cause or permit any person who does not satisfy
3. Chapter 2
the provisions of section 3 or section 4 to drive the vehicle.
4. Chapter 3
5. Chapter 4
6. Restrictions on the holding of driving licenses. (1) No person shall, while he holds any
6. Chapter 5
driving license for the time being in force, hold any other driving license except a learner's
license or a driving license issued in accordance with the provisions of section 18 or a
document authorizing, in accordance with the rules made under section 139, the person
specified therein to drive a motor vehicle. (2) No holder of a driving license or a learner's
license shall permit it to be used by any other person. (3) Nothing in this section shall
prevent a licensing authority having the jurisdiction referred to in sub-section (1) of section 9
from adding to the classes of vehicles which the driving license authorizes the holder to
drive.
7. Restrictions on the granting of learner's licenses for certain vehicles. (1) No person shall
be granted a learner's license-- (a) to drive a heavy goods vehicle unless he has held a
driving license for at least two years to drive a light motor vehicle or for at least one year to

drive a medium goods vehicle; (b) to drive a heavy passenger motor vehicle unless he has
1. Content Index
held a driving license for at least two years to drive a light motor vehicle or for at least one
2. Chapter 1
year to drive a medium passenger motor vehicle; 583 (c) to drive a medium goods vehicle or
3. Chapter 2
a medium passenger motor vehicle unless he has held a driving license for at least one year
4. Chapter 3
to drive a light motor vehicle. (2) No person under the age of eighteen years shall be
5. Chapter 4
granted a learner's license to drive a motor cycle without gear except with the consent in
6. Chapter 5
writing of the person having the care of the person desiring the learner's license.
8. Grant of learner's license. (1) Any person who is not disqualified under section 4 for
driving a motor vehicle and who is not for the time being disqualified for holding or obtaining
a driving license may, subject to the provisions of section 7, apply to the licensing authority
having jurisdiction in the area-- (i) in which he ordinarily resides or carries on business, or (ii)
in which the school or establishment referred to in section 12 from where he intends to
receive instruction in driving a motor vehicle is situate, for the issue to him of a learner's
license. (2) Every application under sub-section (1) shall be in such form and shall be
accompanied by such documents and with such fee as may be prescribed by the Central
Government. (3) Every application under sub-section (1) shall be accompanied by a
medical certificate in such form as may be prescribed by the Central Government and

signed by such registered medical practitioner, as the State Government or any person
1. Content Index
authorized in this behalf by the State Government may, by notification in the Official Gazette,
2. Chapter 1
appoint for this purpose. (4) If, from the application or from the medical certificate referred
3. Chapter 2
to in sub-section (3), it appears that the applicant is suffering from any disease or disability
4. Chapter 3
which is likely to cause the driving by him of a motor vehicle of the class which he would be
5. Chapter 4
authorized by the learner's license applied for to drive to be a source of danger to the public
6. Chapter 5
or to the passengers, the licensing authority shall refuse to issue the learner's license:
Provided that a learner's license limited to driving an invalid carriage may be issued to the
applicant, if the licensing authority is satisfied that he is fit to drive such a carriage. (5) No
learner's license shall be issued to any applicant unless he passes to the satisfaction of the
licensing authority such test as may be prescribed by the Central Government. (6) When an
application has been duly made to the appropriate licensing authority and the applicant has
satisfied such authority of his physical fitness under sub-section (3) and has passed to the
satisfaction of the licensing authority the test referred to in sub- section (5), the licensing
authority shall, subject to the provisions of section 7, issue the applicant a learner's license
unless the applicant is disqualified under section 4 for driving a motor vehicle or is for the
time being disqualified for holding or obtaining a license to drive a motor vehicle: 584
Provided that a licensing authority may issue a learner's license to drive a motor cycle or a

light motor vehicle notwithstanding that it is not the appropriate licensing authority, if such
1. Content Index
authority is satisfied that there is good reason for the applicant's inability to apply to the
2. Chapter 1
appropriate licensing authority. (7) Where the Central Government is satisfied that it is
3. Chapter 2
necessary or expedient so to do, it may, by rules made in this behalf, exempt generally,
4. Chapter 3
either absolutely or subject to such conditions as may be specified in the rules, any class of
5. Chapter 4
persons from the provisions of sub-section (3), or sub-section (5), or both. (8) Any learner's
6. Chapter 5
license for driving a motor cycle in force immediately before the commencement of this Act
shall, after such commencement, be deemed to be effective for driving a motor cycle with or
without gear.
9. Grant of driving license. (1) Any person who is not for the time being disqualified for
holding or obtaining a driving license may apply to the licensing authority having jurisdiction
in the area-- (i) in which he ordinarily resides or carries on business, or (ii) in which the
school or establishment referred to in section 12 from where he is receiving or has received
instruction in driving a motor vehicle is situated, for the issue to him of a driving license. (2)
Every application under sub-section (1) shall be in such form and shall be accompanied by
such fee and such documents as may be prescribed by the Central Government. (3) No
driving license shall be issued to any applicant unless he passes to the satisfaction of the

licensing authority such test of competence to drive as may be prescribed by the Central
1. Content Index
Government: Provided that, where the application is for a driving licence to drive a motor
2. Chapter 1
cycle or a light motor vehicle, the licensing authority shall exempt the applicant from the test
3. Chapter 2
of competence prescribed under this sub-section, if the licensing authority is satisfied-- (a) (i)
4. Chapter 3
that the applicant has previously held a driving license and that the period between the date
5. Chapter 4
of expiry of that license and the date of such application does not exceed five years; or (ii)
6. Chapter 5
that the applicant holds or has previously held a driving license issued under section 18; or
(iii) that the applicant holds a driving license issued by a competent authority of any country
outside India; and (b) that the applicant is not suffering from any disease or disability which
is likely to cause the driving by him of a motor cycle or, as the case may be, a light motor
vehicle to be a source of danger to the public; and the licensing authority may for that
purpose require the applicant to produce a medical certificate in the same form and in the
same manner as is referred to in sub-section (3) of section 8: 585 Provided further that
where the application is for a driving license to drive a motor vehicle (not being a transport
vehicle, the licensing authority may exempt the applicant from the test of competence to
drive prescribed under this sub-section, if the applicant possesses a driving certificate issued
by an automobile association recognized in this behalf by the State Government. (4) Where
the application is for a license to drive a transport vehicle, no such authorization shall be

granted to any applicant unless he possesses such minimum educational qualification as

1. Content Index
may be prescribed by the Central Government and a driving certificate issued by a school or
2. Chapter 1
establishment referred to in section 12. (5) Where the applicant does not pass to the
3. Chapter 2
satisfaction of the licensing authority the test of competence to drive under sub-section (3),
4. Chapter 3
he shall not be qualified to re-appear for such test,-- (a) in the case of first three such tests,
5. Chapter 4
before a period of one month from the date of last such test; and (b) in the case of such test
6. Chapter 5
after the first three tests, before a period of one year from the date of last such test. (6) The
test of competence to drive shall be carried out in a vehicle of the type to which the
application refers: Provided that a person who passed a test in driving a motor cycle with
gear shall be deemed also to have passed a test in driving a motor cycle without gear. (7)
When any application has been duly made to the appropriate licensing authority and the
applicant has satisfied such authority of his competence to drive, the licensing authority shall
issue the applicant a driving license unless the applicant is for the time being disqualified for
holding or obtaining a driving license: Provided that a licensing authority may issue a driving
license to drive a motor cycle or a light motor vehicle notwithstanding that it is not the
appropriate licensing authority, if the licensing authority is satisfied that there is good and
sufficient reason for the applicant's inability to apply to the appropriate licensing authority:
Provided further that the licensing authority shall not issue a new driving license to the

applicant, if he had previously held a driving license, unless it is satisfied that there is good
1. Content Index
and sufficient reason for his inability to obtain a duplicate copy of his former license. (8) If the
2. Chapter 1
licensing authority is satisfied, after giving the applicant an opportunity of being heard, that
3. Chapter 2
he-- (a) is a habitual criminal or a habitual drunkard; or (b) is a habitual addict to any narcotic
4. Chapter 3
drug or psychotropic substance within the meaning of the Narcotic Drugs and Psychotropic
5. Chapter 4
Substances Act, 1985; (61 of 1985.) or (c) is a person whose license to drive any motor
6. Chapter 5
vehicle has, at any time earlier, been revoked, it may, for reasons to be recorded tin writing,
make an order refusing to issue a driving license to such person and any person aggrieved
by 586 an order made by a licensing authority under this sub-section may, within thirty days
of the receipt of the order, appeal to the prescribed authority. (9) Any driving license for
driving a motor cycle in force immediately before the commencement of this Act shall, after
such commencement, be deemed to be effective for driving a motor cycle with or without
gear.
10. Form and contents of licenses to drive. (1) Every learner's license and driving license,
except a driving license issued under section 18, shall be in such form and shall contain
such information as may be prescribed by the Central Government. (2) A learner's license
or, as the case may be, driving license shall also be expressed as entitling the holder to

drive a motor vehicle of one or more of the following classes, namely:-- (a) motor cycle
1. Content Index
without gear; (b) motor cycle with gear; (c) invalid carriage; (d) light motor vehicle; (e)
2. Chapter 1
medium goods vehicle; (f) medium passenger motor vehicle; (g) heavy goods vehicle; (h)
3. Chapter 2
heavy passenger motor vehicle; (i) road-roller; (j) motor vehicle of a specified description.
4. Chapter 3
5. Chapter 4
11. Additions to driving license. (1) Any person holding a driving license to drive any class or
6. Chapter 5
description of motor vehicles, who is not for the time being disqualified for holding or
obtaining a driving license to drive any other class or description of motor vehicles, may
apply to the licensing authority having jurisdiction in the area in which he resides or carries
on his business in such form and accompanied by such documents and with such fees as
may be prescribed by the Central Government for the addition of such other class or
description of motor vehicles to the license. (2) Subject to such rules as may be prescribed
by the Central Government, the provisions of section 9 shall apply to an application under
this section as if the said application were for the grant of a license under that section to
drive the class or description of motor vehicles which the applicant desires to be added to
his license. Imparting instruction in driving of motor vehicles. 12. Licensing and regulation of
schools or establishments for imparting instruction in driving of motor vehicles. (1) The
Central Government may make rules for the purpose of licensing and regulating, by the

State Governments, schools or establishments (by whatever name called) for imparting
1. Content Index
instruction in driving of motor vehicles and matters connected therewith. 587 (2) In particular,
2. Chapter 1
and without prejudice to the generality of the foregoing power, such rules may provide for all
3. Chapter 2
or any of the following matters, namely:-- (a) licensing of such schools or establishments
4. Chapter 3
including grant, renewal and revocation of such licenses; (b) supervision of such schools or
5. Chapter 4
establishments; (c) the form of application and the form of license and the particulars to be
6. Chapter 5
contained therein; (d) fee to be paid with the application for such licenses; (e) conditions
subject to which such licenses may be granted; (f) appeals against the orders of refusal to
grant or renew such licenses and appeals against the orders revoking such licenses; (g)
conditions subject to which a person may establish and maintain any such school or
establishment for imparting instruction in driving of motor vehicles; (h) nature, syllabus and
duration of course or courses for efficient instruction in driving any motor vehicle; (i)
apparatus and equipments (including motor vehicles fitted with dual control) required for the
purpose of imparting such instruction; (j) suitability of the premises at which such schools or
establishments may be established or maintained and facilities to be provided therein; (k)
qualifications, both educational and professional (including experience), which a person
imparting instruction in driving a motor vehicle shall possess; (l) inspection of such schools
and establishments (including the services rendered by them and the apparatus, equipments

and motor vehicles maintained by them for imparting such instruction); (m) maintenance of
1. Content Index
records by such schools or establishments; (n) financial stability of such schools or
2. Chapter 1
establishments; (o) the driving certificates, if any, to be issued by such schools or
3. Chapter 2
establishments and the form in which such driving certificates shall be issued and the
4. Chapter 3
requirements to be complied with for the purposes of issuing such certificates; (p) such other
5. Chapter 4
matters as may be necessary to carry out the purposes of this section. (3) Where the Central
6. Chapter 5
Government is satisfied that it is necessary or expedient so to do, it may, by rules made in
this behalf, exempt generally, either absolutely or subject to such conditions as may be
specified in the rules, any class of schools or establishments imparting instruction in driving
of motor vehicles or matters connected therewith from the provisions of this section. (4) A
school or establishment imparting instruction in driving of motor vehicles or matters
connected therewith immediately before the commencement of this Act whether under a
license or not, may continue to impart such instruction without a licence issued under this
Act for a period of one month from such commencement, and if it has made an application
for such license under this Act within the said period of one month and such application is in
the prescribed form, contains the prescribed particulars and is accompanied by the
prescribed fee, till the disposal of such application by the licensing authority.

13. Extent of effectiveness of licenses, to drive motor vehicles. A learner's license or a

1. Content Index
driving license issued under this Act shall be effective throughout India.
2. Chapter 1
3. Chapter 2
14. Currency of licenses to drive motor vehicles. (1) A learner's license issued under this Act
4. Chapter 3
shall, subject to the other provisions of this Act, be effective for a period of six months from
5. Chapter 4
the date of issue of the license. (2) A driving license issued or renewed under this Act shall,--
6. Chapter 5
(a) in the case of a license to drive a transport vehicle, be effective for a period of three
years; and (b) in the case of any other license,-- (i) if the person obtaining the license, either
originally or on renewal thereof, has not attained the age of forty years on the date of issue
or, as the case may be, renewal thereof,-- (A) be effective for a period of twenty years from
the date of such issue or renewal; or (B) until the date on which such person attains the age
of forty years, whichever is earlier; (ii) if the person referred to in sub-clause (i) has attained
the age of forty years on the date of issue or, as the case may be, renewal thereof, be
effective for a period of five years from the date of such issue or renewal: Provided that
every driving license shall, notwithstanding its expiry under this sub-section, continue to be
effective for a period of thirty days from such expiry.
15. Renewal of driving licenses. (1) Any licensing authority may, on application made to it,

renew a driving license issued under the provisions of this Act with effect from the date of its
1. Content Index
expiry: Provided that in any case where the application for the renewal of a license is made
2. Chapter 1
more than thirty days after the date of its expiry, the driving license shall be renewed with
3. Chapter 2
effect from the date of its renewal: Provided further that where the application is for the
4. Chapter 3
renewal of a license to drive a transport vehicle or where in any other case the applicant has
5. Chapter 4
attained the age of forty years, the same shall be 589 accompanied by a medical certificate
6. Chapter 5
in the same form and in the same manner as is referred to in sub-section (3) of section 8,
and the provisions of sub-section (4) of section 8 shall, so far as may be, apply in relation to
every such case as they apply in relation to a learner's license. (2) An application for the
renewal of a driving license shall be made in such form and accompanied by such
documents as may be prescribed by the Central Government. (3) Where an application for
the renewal of a driving license is made previous to, or not more than thirty days after the
date of its expiry, the fee payable for such renewal shall be such as may be prescribed by
the Central Government in this behalf. (4) Where an application for the renewal of a driving
license is made more than thirty days after the date of its expiry, the fee payable for such
renewal shall be such amount as may be prescribed by the Central Government: Provided
that the fee referred to in sub-section (3) may be accepted by the licensing authority in
respect of an application for the renewal of a driving license made under this sub-section if it

is satisfied that the applicant was prevented by good and sufficient cause from applying
1. Content Index
within the time specified in sub-section (3): Provided further that if the application is made
2. Chapter 1
more than five years after the driving license has ceased to be effective, the licensing
3. Chapter 2
authority may refuse to renew the driving license, unless the applicant undergoes and
4. Chapter 3
passes to its satisfaction the test of competence to drive referred to in sub-section (3) of
5. Chapter 4
section 9. (5) Where the application for renewal has been rejected, the fee paid shall be
6. Chapter 5
refunded to such extent and in such manner as may be prescribed by the Central
Government. (6) Where the authority renewing the driving license is not the authority which
issued the driving license it shall intimate the fact of renewal to the authority which issued
the driving license.
16. Revocation of driving license on grounds of disease or disability. Notwithstanding

anything contained in the foregoing sections, any licensing authority may at any time revoke
a driving license or may require, as a condition of continuing to hold such driving license, the
holder thereof to produce a medical certificate in the same form and in the same manner as
is referred to in sub-
section (3) of section 8, if the licensing authority has reasonable grounds to believe that the
holder of the driving license is, by virtue of any disease or disability, unfit to drive a motor

vehicle and where the authority revoking a driving license is not the authority which issued
1. Content Index
the same, it shall intimate the fact of revocation to the authority which issued that license.
2. Chapter 1
3. Chapter 2
17. Orders refusing or revoking driving licenses and appeals. There-from. (1) Where a
4. Chapter 3
licensing authority refuses to issue any learner's license or to issue or renew, or revokes,
5. Chapter 4
any driving license, or refuses to add a class or description of motor vehicle to any driving
6. Chapter 5
license, it shall do so by an order communicated to the applicant or the holder, as the case
may be, giving the reasons in writing for such refusal or revocation. 590. (2) Any person
aggrieved by an order made under sub-section (1) may, within thirty days of the service on
him of the order, appeal to the prescribed authority which shall decide the appeal after giving
such person and the authority which made the order an opportunity of being heard and the
decision of the appellate authority shall be binding on the authority which made the order..
18. Driving licenses to drive motor vehicles, belonging to the Central Government. (1) Such
authority as may be prescribed by the Central Government may issue driving license valid
throughout India to persons who have completed their eighteenth year to drive motor
vehicles which are the property or for the time being under the exclusive control of the
Central Government and are used for Government purposes relating to the defense of the

country and unconnected with any commercial enterprise. (2) A driving license issued under
1. Content Index
this section shall specify the class or description of vehicle which the holder is entitled to
2. Chapter 1
drive and the period for which he is so entitled. (3) A driving license issued under this section
3. Chapter 2
shall not entitle the holder to drive any motor vehicle except a motor vehicle referred to in
4. Chapter 3
sub-section (1). (4) The authority issuing any driving license under this section shall, at the
5. Chapter 4
request of any State Government, furnish such information respecting any person to whom a
6. Chapter 5
driving license is issued as that Government may at any time require or revoke such license.
19. Power of licensing authority to disqualify from holding a driving license or revoke such
license. (1) If a licensing authority is satisfied, after giving the holder of a driving license an
opportunity of being heard, that he-- (a) is a habitual criminal or a habitual drunkard; or (b) is
a habitual addict to any narcotic drug or psychotropic substance within the meaning of the
Narcotic Drugs and Psychotropic Substances Act, 1985; (61 of 1985.) or (c) is using or has
used a motor vehicle in the commission of a cognizable offence; or (d) has by his previous
conduct as driver of a motor vehicle shown that his driving is likely to be attended with
danger to the public; or (e) has obtained any driving license or a license to drive a particular
class or description of motor vehicle by fraud or misrepresentation; or (f) has committed any
such act which is likely to cause nuisance or danger to the public, as may be prescribed by

the Central Government, having regard to the objects of this Act; or (g) has failed to submit
1. Content Index
to, or has not passed, the tests referred to in the proviso to sub-section (3) of section 22; or
2. Chapter 1
(h) being a person under the age of eighteen years who has been granted a learner's license
3. Chapter 2
or a driving license with the consent 591 in writing of the person having the care of the
4. Chapter 3
holder of the license and has ceased to be in such care, it may, for reasons to be recorded
5. Chapter 4
in writing, make an order-- (i) disqualifying that person for a specified period for holding or
6. Chapter 5
obtaining any driving license to drive all or any classes or descriptions of vehicles specified
in the license; or (ii) revoke any such license. (2) Where an order under sub-section (1) is
made, the holder of a driving license shall forthwith surrender his driving license to the
licensing authority making the order, if the driving licence has not already been surrendered,
and the licensing authority shall,-- (a) if the driving licence is a driving licence issued under
this Act, keep it until the disqualification has expired or has been removed; or (b) if it is not a
driving licence issued under this Act, endorse the disqualification upon it and send it to the
licensing authority by which it was issued; or (c) in the case of revocation of any licence,
endorse the revocation upon it and if it is not the authority which issued the same, intimate
the fact of revocation to the authority which issued that licence: Provided that where the
driving licence of a person authorises him to drive more than one class or description of
motor vehicles and

the order, made under sub-section (1), disqualifies him from driving any specified class or
1. Content Index
description of motor vehicles, the licensing authority shall endorse the disqualification upon
2. Chapter 1
the driving licence and return the same to the holder. (3) Any person aggrieved by an order
3. Chapter 2
made by a licensing authority under sub-section (1) may, within thirty days of the receipt of
4. Chapter 3
the order, appeal to the prescribed authority, and such appellate authority shall give notice to
5. Chapter 4
the licensing authority and hear either party if so required by that party and may pass such
6. Chapter 5
order as it thinks fit and an order passed by any such appellate authority shall be final.
20. Power of Court to disqualify. (1) Where a person is convicted of an offence under this
Act or of an offence in the commission of which a motor vehicle was used, the Court by
which such person is convicted may, subject to the provisions of this Act, in addition to
imposing any other punishment authorised by law, declare the persons so convicted to be
disqualified, for such period as the Court may specify, from holding any driving licence to
drive all classes or description of vehicles, or any particular class or description of such
vehicles, as are specified in such licence: Provided that in respect of an offence punishable
under section 183 no such order shall be made for the first or second offence. (2) Where a
person is convicted of an offence under clause (c) of sub-section (1) of section 132, section
134 or section 185, the Court convicting any person of any such offence shall order the

disqualification under sub-section (1), and if the offence is relatable to clause (c) of sub-
1. Content Index
section 592 (1) of section 132 or section 134, such disqualification shall be for a period of
2. Chapter 1
not less than one month, and if the offence is relatable to section 185, such disqualification
3. Chapter 2
shall be for a period of not less than six months. (3) A Court shall, unless for special reasons
4. Chapter 3
to be recorded in writing it thinks fit to order otherwise, order the disqualification of a person-
5. Chapter 4
- (a) who having been convicted of an offence punishable under section 184 is again
6. Chapter 5
convicted of an offence punishable under that section, (b) who is convicted of an offence
punishable under section 189, or (c) who is convicted of an offence punishable under
section 192: Provided that the period of disqualification shall not exceed, in the case referred
to in clause (a), five years, or, in the case referred to in clause (b), two years or, in the case
referred to in clause (c), one year. (4) A Court ordering the disqualification of a person
convicted of an offence punishable under section 184 may direct that such person shall,
whether he has previously passed the test of competence to drive as referred to in sub-
section (3) of section 9 or not, remain disqualified until he has subsequent to the making of
the order of disqualification passed that test to the satisfaction of the licensing authority. (5)
The Court to which an appeal would ordinarily lie from any conviction of an offence of the
nature specified in sub-section (1) may set aside or vary any order of disqualification made
under that sub-section notwithstanding that no appeal would lie against the conviction as a

result of which such order of disqualification was made.

1. Content Index
2. Chapter 1
21. Suspension of driving licence in certain cases. (1) Where, in relation to a person who
3. Chapter 2
had been previously convicted of an offence punishable under section 184, a case is
4. Chapter 3
registered by a police officer on the allegation that such person has, by such dangerous
5. Chapter 4
driving as is referred to in the said section 184, of any class or description of motor vehicle
6. Chapter 5
caused the death of, or grievous hurt to, one or more persons, the driving licence held by
such person shall in relation to such class or description of motor vehicle become
suspended-- (a) for a period of six months from the date on which the case is registered, or
(b) if such person is discharged or acquitted before the expiry of the period aforesaid, until
such discharge or acquittal, as the case may be. (2) Where by virtue of the provisions of
sub-section (1), the driving licence held by a person becomes suspended, the police officer,
by whom the case referred to in sub-section (1) is registered, shall bring such suspension to
the notice of the Court competent to take cognizance of such offence, and thereupon, such
Court shall take possession of the driving licence, endorse the suspension thereon and
intimate the fact of such endorsement to the licensing authority by which the licence was
granted or last renewed. 593 (3) Where the person referred to in sub-section (1) is acquitted
or discharged, the Court shall cancel the endorsement on such driving licence with regard to

the suspension thereof. (4) If a driving licence in relation to a particular class or description
1. Content Index
of motor vehicles is suspended under sub-section (1), the person holding such licence shall
2. Chapter 1
be debarred from holding or obtaining any licence to drive such particular class or
3. Chapter 2
description of motor vehicles so long as the suspension of the driving licence remains in
4. Chapter 3
force.
5. Chapter 4
6. Chapter 5
22. Suspension or cancellation of driving licence on conviction. (1) Without prejudice to the
provisions of sub-section (3) of section 20 where a person, referred to in sub-section (1) of
section 21 is convicted of an offence of causing, by such dangerous driving as is referred to
in section 184 of any class or description of motor vehicle the death of, or grievous hurt to,
one or more persons, the Court by which such person is convicted may cancel, or suspend
for such period as it may think fit, the driving licence held by such person in so far as it
relates to that class or description of motor vehicle. (2) Without prejudice to the provisions of
sub-section (2) of section 20, if a person, having been previously convicted of an offence
punishable under section 185 is again convicted of an offence punishable under that section,
the Court, making such subsequent conviction, shall, by order, cancel the driving licence
held by such person. (3) If a driving licence is cancelled or suspended under this section, the
Court shall take the driving licence in its custody, endorse the cancellation or, as the case

may be, suspension, thereon and send the driving licence so endorsed to the authority by
1. Content Index
which the licence was issued or last renewed and such authority shall, on receipt of the
2. Chapter 1
licence, keep the licence in its safe custody, and in the case of a suspended licence, return
3. Chapter 2
the licence to the holder thereof after the expiry of the period of suspension on an
4. Chapter 3
application made by him for such return: Provided that no such licence shall be returned
5. Chapter 4
unless the holder thereof has, after the expiry of the period of suspension, undergone and
6. Chapter 5
passed, to the satisfaction of the licensing authority by which the licence was issued or last
renewed, a fresh test of competence to drive referred to in sub-section (3) of section 9 and
produced a medical certificate in the same form and in the same manner as is referred to in
sub-section (3) of section 8. (4) If a licence to drive a particular class or description of motor
vehicles is cancelled or suspended under this section, the person holding such a licence
shall be debarred from holding, or obtaining, any licence to drive such particular class or
description of motor vehicles so long as the cancellation or suspension of the driving licence
remains in force.
23. Effect of disqualification order. (1) A person in respect of whom any disqualification order
is made under section 19 or section 20 shall be debarred to the extent and for the period
specified in such order from holding or obtaining a driving licence and the driving licence, if

any, held by such person at the date of the order shall cease to be effective to such extent
1. Content Index
and during such period. 594 (2) The operation of a disqualification order made under section
2. Chapter 1
20 shall not be suspended or postponed while an appeal is pending against such order or
3. Chapter 2
against the conviction as a result of which such order is made, unless the appellate court so
4. Chapter 3
directs. (3) Any person in respect of whom any disqualification order has been made may at
5. Chapter 4
any time after the expiry of six months from the date of the order apply to the Court or other
6. Chapter 5
authority by which the order was made, to remove the disqualification; and the Court or
authority, as the case may be, may, having regard to all the circumstances, either cancel or
vary the disqualification order: Provided that where the Court or other authority refuses to
cancel or vary any disqualification order under this section, a second application thereunder
shall not be entertained before the expiry of a period of three months from the date of such
refusal.
24. Endorsement. (1) The Court or authority making an order of disqualification shall
endorse or cause to be endorsed upon the driving licence if any, held by the person
disqualified, particulars of the order of disqualification and of any conviction of an offence in
respect of which an order of disqualification is made; and particulars of any cancellation or
variation of an order of disqualification made under sub-section (3) of section 23 shall be

similarly so endorsed. (2) A Court by which any person is convicted of an offence under this
1. Content Index
Act as may be prescribed by the Central Government, having regard to the objects of this
2. Chapter 1
Act, shall, whether or not a disqualification order is made in respect of such conviction,
3. Chapter 2
endorse or cause to be endorsed particulars of such conviction on any driving licence held
4. Chapter 3
by the person convicted. (3) Any person accused of an offence prescribed under sub-section
5. Chapter 4
(2) shall when attending the Court bring with him his driving licence if it is in his possession.
6. Chapter 5
(4) Where any person is convicted of any offence under this Act and sentenced to
imprisonment for a period exceeding three months the Court awarding the sentence shall
endorse the fact of such sentence upon the driving licence of the person concerned and the
prosecuting authority shall intimate the fact of such endorsement to the authority by which
the driving licence was granted or last renewed. (5) When the driving licence is endorsed or
caused to be endorsed by any Court, such Court shall send the particulars of the
endorsement to the licensing authority by which the driving license was granted or last
renewed. (6) Where on an appeal against any conviction or order of a Court, which has been
endorsed on a driving license, the appellate court varies or sets aside the conviction or
order, the appellate court shall inform the licensing authority by which the driving licence was
granted or last renewed and such authority shall amend or cause to be amended the
endorsement.

1. Content Index
25. Transfer of endorsement and issue of driving license free from endorsement. (1) An
2. Chapter 1
endorsement on any driving license shall be transferred to any new or duplicate driving
3. Chapter 2
license obtained by the holder thereof until the holder becomes entitled under the provisions
4. Chapter 3
of this section to have a driving license issued to him free from endorsement. (2) Where a
5. Chapter 4
driving license is required to be endorsed and the driving license is not in the possession of
6. Chapter 5
the Court or authority by which the endorsement is to be made, then-- (a) if the person in
respect of whom the endorsement is to be made is at the time the holder of a driving license,
he shall produce the driving license to the Court or authority within five days, or such longer
time as the Court or authority may fix; or (b) if, not being then the holder of a driving license,
he subsequently obtains a driving license, he shall within five days after obtaining the driving
license produce it to the Court or authority, and if the driving license is not produced within
the time specified, it shall, on the expiration of such time, be of no effect until it is produced
for the purpose of endorsement. (3) A person whose driving license has been endorsed
shall, if during a continuous period of three years after such endorsement no further
endorsement has been made against him, be entitled on surrendering his driving license
free from all endorsements: Provided that if the endorsement is only in respect of an offence
contravening the speed limits referred to in section 112, such person shall be entitled to

receive a new driving license free from such endorsements on the expiration of one year of
1. Content Index
the date of the endorsement: Provided further that in reckoning the said period of three
2. Chapter 1
years and one year, respectively, any period during which the said person was disqualified
3. Chapter 2
for holding or obtaining a driving license shall be excluded.
4. Chapter 3
5. Chapter 4
26. Maintenance of State Registers of Driving Licenses. (1) Each State Government shall
6. Chapter 5
maintain, in such form as may be prescribed by the Central Government, a register to be
known as the State Register of Driving Licenses, in respect of driving licenses issued and
renewed by the licensing authorities of the State Government, containing the following
particulars, namely:-- (a) names and addresses of holders of driving licenses; (b) license
numbers; (c) dates of issue or renewal of licenses; (d) dates of expiry of licenses; (e) classes
and types of vehicles authorized to be driven; and (f) such other particulars as the Central
Government may prescribe. (2) Each State Government shall supply to the Central
Government a printed copy of the State Register of Driving Licenses and shall inform the
Central Government without delay of all additions to and other amendments in such register
made from time to time. 596. (3) The State Register of Driving Licenses shall be maintained
in such manner as may be prescribed by the State Government.

27. Power of Central Government to make rules. The Central Government may make rules--
1. Content Index
(a) regarding conditions referred to in sub-section (2) of section 3; (b) providing for the form
2. Chapter 1
in which the application for learner's license may be made, the information it shall contain
3. Chapter 2
and the documents to be submitted with the application referred to in sub-section (2) of
4. Chapter 3
section 8; (c) providing for the form of medical certificate referred to in sub-section (3) of
5. Chapter 4
section 8; (d) providing for the particulars for the test referred to in sub-section (5) of section
6. Chapter 5
8; (e) providing for the form in which the application for driving license may be made, the
information it shall contain and the documents to be submitted with the application referred
to in sub-section (2) of section 9; (f) providing for the particulars regarding test of
competence to drive, referred to in sub-section (3) of section 9; (g) specifying the minimum
educational qualifications of persons to whom licenses to drive transport vehicles may be
issued under this Act and the time within which such qualifications are to be acquired by
such persons; (h) providing for the form and contents of the licenses referred to in sub-
section (1) of section 10; (i) providing for the form and contents of the application referred to
in sub-section (1) of section 11 and documents to be submitted with the application and the
fee to be charged; (j) providing for the conditions subject to which section 9 shall apply to an
application made under section 11; (k) providing for the form and contents of the application
referred to in sub-section (1) of section 15 and the documents to accompany such

application under sub-section (2) of section 15; (l) providing for the authority to grant
1. Content Index
licenses under sub- section (1) of section 18; (m) specifying the fees payable under sub-
2. Chapter 1
section (2) of section 8, sub-section (2) of section 9 and sub-sections (3) and (4) of section
3. Chapter 2
15 for the grant of learner's licenses, and for the grant and renewal of driving licenses and
4. Chapter 3
licenses for the purpose of regulating the schools or establishment for imparting instructions
5. Chapter 4
in driving motor vehicles; (n) specifying the acts for the purposes of clause (f) of sub-section
6. Chapter 5
(1) of section 19; (o) specifying the offences under this Act for the purposes of sub-section
(2) of section 24; (p) to provide for all or any of the matters referred to in sub-section (1) of
section 26; 597 (q) any other matter which is, or has to be, prescribed by the Central
Government.
28. Power of State Government to make rules. (1) A State Government may make rules for
the purpose of carrying into effect the provisions of this Chapter other than the matters
specified in section (2) Without prejudice to the generality of the foregoing power, such rules
may provide for-- (a) the appointment, jurisdiction, control and functions of licensing
authorities and other prescribed authorities; (b) the conduct and hearing of appeals that may
be preferred under this Chapter, the fees to be paid in respect of such appeals and the
refund of such fees: Provided that no fee so fixed shall exceed twenty-five rupees; (c) the

issue of duplicate licenses to replace licenses lost, destroyed or mutilated, the replacement
1. Content Index
of photographs which have become obsolete and the fees to be charged therefore; (d) the
2. Chapter 1
badges and uniform to be worn by drivers of transport vehicles and the fees to be paid in
3. Chapter 2
respect of badges; (e) the fee payable for the issue of a medical certificate under sub-
4. Chapter 3
section (3) of section 8; (f) the exemption of prescribed persons, or prescribed classes of
5. Chapter 4
persons, from payment of all or any portion of the fees payable under this Chapter; (g) the
6. Chapter 5
communication of particulars of licenses granted by one licensing authority to other licensing
authorities; (h) the duties, functions and conduct of such persons to whom licenses to drive
transport vehicles are issued; (i) the exemption of drivers of road-rollers from all or any of the
provisions of this Chapter or of the rules made hereunder; (j) the manner in which the State
Register of Driving Licenses shall be maintained under section 26; (k) any other matter
which is to be, or may be, prescribed.
Tax information
Private vehicles
SR NO. TYPE OF VEHICLE ONE TIME TAX (Rs)

1 Moped 800.00
1. Content Index
2 Scooter/Motorcycle 1500.00
2. Chapter 1
3 Car/Jeep 2.5%of cost value
3. Chapter 2
4 Trailer attached in vehicles mentioned at 605.00
4. Chapter 3
SN 3
5. Chapter 4
5 Car/Jeep having unladen weight 2.5% of cost + Rs 5324
6. Chapter 5
exceeding 5000 kgs for every 1000 kgs or
part of there of
6 Trailer attached in vehicles mentioned at 1210.00
SN 5
Transport vehicles
SR. NO TYPES OF VEHICLES TAX PER QUARTER (Rs)
1 Autorickshaw with seating capacity of not more 95.00
than 3 persons excluding driver
2 With seating capacity of more than 4 persons 185.00

but not more than 6 persons excluding driver (

1. Content Index
three - wheelers )
2. Chapter 1
3 Light Motor Vehicle with seating capacity of4 185.00
3. Chapter 2
persons excluding driver
4. Chapter 3
5. Chapter 4
6. Chapter 5
others )
If intended for use on 'A' class route)
If intended for use on 'B' class route)
7 With seating capacity of more than 12 persons
but not more than 20 persons excluding driver
(i) On 'A' class route for first 12 seats 350.00
(ii) On 'A' class route for every additional seat 30.00


1. Content Index
2. Chapter 1
()
3. Chapter 2
(i) On'B' class route for first 12 seats 201.00
4. Chapter 3
(ii) On 'B' class route for every additional seat 8.00
5. Chapter 4
6. Chapter 5
(i) On 'A' class route for first 20 seats 590.00

(ii) On 'A' class route for every additional seat) 35.00
(i) On 'B' class route for first 20 seats 265.00

(ii) On 'B' class route for every additional seats 11.50
excluding driver
(i) On 'A' class route for the first 35 seats 1115.00

(ii) On 'A' class route for every additional seat 45.00


1. Content Index
excluding driver
2. Chapter 1
(i) On 'B' class route for the first 35 seats 438.00
3. Chapter 2
(ii) On 'B' class route for every additional seat 17.00
4. Chapter 3
5. Chapter 4 13 Goods carriage for every metric tones of the
GVW or part there of
6. Chapter 5
(i) For one region 70.00
(ii) Form more than one region 85.000
Additional tax on goods vehicle

SR. NO AREA OF OPERATION RATE PER
QUARTER (Rs)
1 On hill routes 210.00 / MT of GVW
or part there of
2 On plains routes 85.00 / MT of GVW
or part there

3 In respect of Goods Carriages Half of additional tax

1. Content Index
exclusively carrying agricultural rates specified
2. Chapter 1
produce, Minerals & Petroleum above
3. Chapter 2
goods
4. Chapter 3
5. Chapter 4
6. Chapter 5
For Contract Carriages
SR NO. Type of vehicle Rate per Seat per
Month (Rs)
1 Three Wheeler with seating 30.00
capacity notmore than six
persons excluding driver
2 Taxicab 85.00
3 Maxi cab 125.00
4 For a vehicle with seating 160.00
capacity more than 12 persons
exclusive of driver and
conductor

5 Semi Deluxe Bus 200.00

1. Content Index
6 Deluxe Bus 225.00
2. Chapter 1
7 Air Conditioned Bus 255.00
3. Chapter 2
4. Chapter 3
5. Chapter 4
Driving License
6. Chapter 5
Many of the Motor Vehicle Accidents are caused due to negligence of Drivers. This is
reflected in the monthly reports received in form „J‟ from the Regional Transport Officers in
respect of work done by Inspector of Motor Vehicle. It is not known is the Drivers at fault are
firmly dealt with in such cases under relevant provisions of M.V. Laws. Section-19 of
M.V.Act, 1988 vests power with the licensing authority to disqualify a person from holding
the driving license on several grounds such as the driving of the Vehicle by the holder of
license is likely to be attended with danger to the public etc.
Where the gravity of the offence on the part of the Driver causing accident is such it
should warrant disqualification of the Driver to hold the driving license, the Inspector of Motor
Vehicles while inspecting the accident cases should make a separate report to the licensing

authority i.e. Regional Transport Officer/Addl. Regional Transport Officer / Asst. Regional
1. Content Index
Transport officer with his recommendation for disqualifying the Driver concerned from
2. Chapter 1
holding the driving license or to revoke such license depending on the gravity of the offence.
3. Chapter 2
4. Chapter 3
Action taken by the Inspector of Motor Vehicles in this regard should be reflected in
5. Chapter 4
his tour abstracts while furnishing monthly tour diaries to this office. The Licensing Authority
6. Chapter 5
immediately on receipt of report of I.M.V. will proceed to take action for disqualifying the
Driver concerned adopting the procedure under Sec.19 of the Act and make necessary entry
in Driving License Register. If the license was issued by the Licensing Authority of some
other region necessary intimation should go forthwith to the concerned Licensing Authority
for appropriate entry in his record. This would go a long way in minimizing the accident
cases occurring due to negligence of Drivers.
The above instruction should be strictly complied with by all concerned. Uniforms and
badges have been prescribed for the Drivers of Public Service vehicles as these promote a
sense of discipline and discipline and responsible Drivers and Conductors of such vehicles.
They help the traveling public and other concerned persons identify them. In spite of the fact
that there are provisions in the Motor Vehicles Act, 1988 and Rules framed there under

requiring the Drivers and Conductors to comply with this requirement large number of cases
1. Content Index
of violations have come to the notice of this Authority. The matters of meticulously enforcing
2. Chapter 1
the provisions and taking firm action against the violators have therefore become necessary.
3. Chapter 2
4. Chapter 3
As such action careful considerations the following instructions are issued: -
5. Chapter 4
Badge and uniform for drivers
6. Chapter 5
Rule – 71 of the Orissa Motor Vehicles Rules, 1993 prescribed that the Driver of a
Public Service vehicle must have a badge and wear a Khaki Uniform consisting of a long
trouser and a Bush-Shirt having two pockets and pair of shoes. The badge illustrated in the
Third Schedule of O.M.V. Rules, 1993 shall have to be displayed on the left side of the chest
of the Uniform. He has to himself ensure wearing of the uniform and display of the Badge
during his duty in driving the public service vehicle.
Badge and uniform for the conductors
Similarly, Rule 11 of the Orissa Stage Carriage (Licensing of Conductors) Rules,

1994 provides that a Conductor shall use Khaki Trouser with Khaki Half or Full Shirt and a

pick cap while on duty and the P.S.V. Badge shall be displayed on the left side of the chest
1. Content Index
in a conspicuous manner.
2. Chapter 1
3. Chapter 2
Supply of the badges
4. Chapter 3
5. Chapter 4
The badges made of Brass, both for Drivers and Conductors are kept in stock in the
6. Chapter 5
office store of the S.T.A. The Regional Transport Officers (Licensing Authorities) who do not
have adequate stock should arranges to collect the same from the office of the State
Transport Authority forthwith and issue to the concerned Drivers and Conductors.
For identification particular
According to the provisions of Rule 71(b) of the Orissa Motor Vehicles Rules, 1993
the Driver of a public service vehicle while on duty shall display on the right side of his chest
of the uniform worm by him a plate in white plastic of Size 8 cm X 2.5 cm inscribed with him
name in hold black letters of size 0.5 cm in English and Oriya, one below the other
respectively. Similarly, according to the Rule 11(1)(d) of the Orissa Stage Carriage
(Licensing of Conductors) Rules, 1994 the Conductor of a Stage Carriage shall, while on

duty, display on his right side of the chest a plate in white Plastic of size 8 cm X 2.5 cm
1. Content Index
inscribed with his name in bold letters of size 0.5 cm, both in English and Oriya One below
2. Chapter 1
the other respectively. These plastic plates will not be supplied by the Licensing Authorities
3. Chapter 2
but the Drivers and the Conductors shall have to get the same prepared at their own cost.
4. Chapter 3
The Rules-24 or 31-A of the Central Motor Vehicles Rules 1989 deal with the licensing of
5. Chapter 4
driving Training Schools or Establishments. As provided therein all the licensing Authorities
6. Chapter 5
are competent to grant licenses for opening and functioning of such driving schools or
establishments. For authorization to drive a transport vehicle requires possession of a
driving certificate issued by a school or establishments referred to in Section-12 of the M.V.
Act 1988 (vide Sec-9).
The requirement to be complied with by an applicant for grant or renewal of licenses for
establishment of a driving school and the conditions to be observed by him during the
currency of such licenses is given in detail under Rule-24 and 27 of the Central Motor
Vehicles Rules 1989 respectively. Similarly the requirements to be complied with for grant of
a temporary license is provided under Rule-31-A of the said rules.
1. You are hereby instructed to ensure that all such requirements are complied with
without any deviation, by an applicant before grant of renewal of a license to him

temporary or permanent as the case may be. During the currency of the licenses
1. Content Index
also, you should ensure through regular and surprise inspection of the school as well
2. Chapter 1
as the records maintained in the school to ensure that the conditions prescribed in the
3. Chapter 2
rules are complied with. In case any violation is noticed the same should be pointed
4. Chapter 3
out to the Head of the School with instruction to make good the omission within a
5. Chapter 4
reasonable period of time. If in spite of this, we fails to improve steps will be taken to
6. Chapter 5
suspend / revoke the licenses U/S-28 of the said rules.
2. Another important aspect which has been brought to our notice is that licenses driving
schools even though have one vehicle and other limited provisions for the training ,
are issuing driving certificates to many persons, imparting driving training as per
syllabus to such a number is though almost impossible within a limit period. Therefore
while issuing the licenses to driving schools, the R.T.Os (Licensing Authorities)
should specify the number of trainees to be taken for a particular course to be held
during a specified period taking into consideration the number of vehicles and other
provisions available for the training.
3. In order that the genuineness of a driving certificate (in form 5) issued by a Driving

School licensed by are Licensing Authority produced before another licensing

1. Content Index
authority for grant of a licenses or addition of a new class of vehicle to an existing
2. Chapter 1
licenses or for grant of a licenses to driving a transport vehicle, as the case may be,
3. Chapter 2
can be that all the Licensing Authorities have a list of the driving school licensed by all
4. Chapter 3
other Licensing Authorities in the State with details particulars of such license like the
5. Chapter 4
class of vehicle(s) on which the school is licensed to impart driving training and the
6. Chapter 5
period of validity of such license etc. Similarly when a licenses authority revokes or
suspends a license, it must circulate among all other Licensing Authorities in the
State. Since this has not been done in respect of the licenses already granted by
different Licensing Authorities, it is hereby instructed that each Licensing Authority
shall immediately circulate a list of the schools already licensed by him with
necessary particulars among all other Licensing Authorities (Tech.). Hereafter, any
change in such list of a licensing authority as a result of grant of new licenses
renewal of existing licenses suspension or revocation of licenses shall be circulated
among all other licensing authorities in the State forthwith i.e. itself at the time of such
grant, renewal suspension or cancellation as the case may be. A copy of such
intimation shall also be sent to the address of Joint Commissioner Transport
(Technical).

1. Content Index
4. For information of all the Licensing Authorities it is hereby clarified that a driving
2. Chapter 1
certificate (in Form-5) issued by a Driving School licensed by one Licensing Authority
3. Chapter 2
shall be accepted by ot6her licensing authorities for the purpose of grant of a license
4. Chapter 3
or addition of a new class of vehicle to an existing license or for grant of license for
5. Chapter 4
driving a transport vehicle, as the case may be provided the same is countersigned
6. Chapter 5
by the Licensing Authority in whose jurisdiction the particular Driving Training School
is situated and is imparting training. This clarification is, however without prejudice to
the provisions of the M.V. Act 1988 regarding the jurisdiction of the Licensing
Authority, for entertaining an application for a Driving Licenses
Licensing of drivers of motor vehicles
1. Licensing authority and jurisdiction
a) The Licensing Authority: - For the purpose of grant of a license under this Chapter,
licensing authority shall be the officer appointed/empowered as such by the Commissioner.
b) Superintendence of Control: - Subject to the general control and superintendence of the

UT Administration, the Control over the person appointed as licensing Authority shall vest in
1. Content Index
the Commissioner;
2. Chapter 1
3. Chapter 2
c) Jurisdiction: - A licensing Authority shall have jurisdiction over the area as specified by the
4. Chapter 3
Commissioner;
5. Chapter 4
6. Chapter 5
d) Communication: - The Licensing Authority shall communicate the particulars of an
adverse entry received from any other agency /court to all the Zones of the Transport
Department for their records;
e) Functions:- The functions of the licensing authority shall be to deal with the issue of
driving licenses, conductor's license, under the Act and any other functions as assigned by
the Commissioner;
2. Conduct and Hearing of Appeal
a) Appellate Authority: - The authority empowered under the Act and this Rule to hear an
appeal against the decision of the licensing authority shall be the Commissioner;

b) Conduct of hearing of appeals: An appeal shall be preferred in duplicate in the form of a

1. Content Index
memorandum, one copy of which shall bear a fee of Rs. 25/- setting forth the grounds of
2. Chapter 1
objection to the order of the licensing authority and shall be accompanied by a certified copy
3. Chapter 2
of that order
4. Chapter 3
5. Chapter 4
c) When an appeal is lodged, a notice shall be issued to the authority against whose order to
6. Chapter 5 appeal is preferred in such forms as the appellate authority may direct;
d) The appellate authority after giving an opportunity to the parties to be heard and after
such further enquiry, if any, as it may seem necessary, may confirm, vary or set aside the
order from which the appeal is preferred and shall make an order accordingly;
e) Any person preferring an appeal under the provisions of the Act and of this Rule shall be
entitled to obtain the copy of document filed with the licensing authority on payment of a fee
at the rate of Rs. 5 per page;
f) The appellate authority may make such orders for the refund of the fee as it may consider
just and proper.
3. Issue of Duplicate Licenses Badges

a) If at any time a license or a badge is lost by the holder thereof or it is destroyed, the
holder shall forthwith intimate the facts in writing in Form LLD in case of driving License
badge in Form L. CON.A in case of conductor's license badge as the case may be, to the

licensing authority;
1. Content Index
2. Chapter 1 b) Upon the receipt of intimation as aforesaid, the licensing authority shall, if he is not the
authority by whom the license was issued, apply to that authority for the particulars of the
3. Chapter 2 license and of any endorsements thereon, and after making such enquiries as he thinks fit
4. Chapter 3 shall if he is satisfied that a duplicate may properly be issued, issue a duplicate
license/badge;
5. Chapter 4
c) When a photograph is affixed in case of a conductor to a duplicate license issued under
6. Chapter 5
the provisions of the Rules, the holder of the licence should furnish the Licensing Authority
with two clear copies of a recent photograph of himself one of which shall be affixed to the
duplicate certificates.
d) The fee for a duplicate license issued under this rule shall be Rs. 100/- only in the case of
a driving license in Form 7 and Rs. 150/- only in case of a conductor's license in from L.COM
provided that if the license/badge is lost while in the custody of a court or an authority to
which it has been submitted or surrendered in pursuance of the provisions of the Act or
these Rules the duplicate shall be issued free of charge;
e) When a duplicate license or badge has been issued upon representation that has been
lost and the original license or is afterwards found by the holder he shall deliver it forthwith to
the licensing authority;
f) Any other person finding driver's/conductor's license or badge as the case may be, shall
deliver it to the holder of the license or to the nearest police station;
g) For the replacement of a photograph which has become obsolete, the same procedure

shall be adopted as prescribed for the issue of a duplicate driving license;

1. Content Index
2. Chapter 1 4. Driver's Badge:
3. Chapter 2 a) The driver of a public service vehicle shall display on his left chest a metal or a plastic
4. Chapter 3 badge of the shape, size and colour approved by the Commissioner from time to time issued
5. Chapter 4 by, and inscribed with, the name of the authority by which an authorization to drive a public
6. Chapter 5 service vehicle has been granted and the word "Driver", together with an identification
number. The issuing authority for the badges shall be the licensing authority as given in Rule
3
b) A driver of a public service vehicle shall not hold more than one such badge issued in the
UT;
c) The fee for the issue of the badge as aforesaid by the licensing authority shall be Rs.
100/-. If the badge is lost or destroyed, a duplicate badge shall be issued on payment of
Rs.100/- as penalty/charges thereof;
d) If at any time the authorization on a driver's license entitling him to drive a public service
vehicle is suspended or revoked by any authority or by any Court or ceased to be valid by

1. Content Index
the efflux by the time, the driver shall within seven days thereof surrender the badge to the
2. Chapter 1
licensing authority;
3. Chapter 2
4. Chapter 3
e) An appeal against the order of issuing authority for badges shall be dealt within the same
5. Chapter 4
manner as in the case of driving license given in Rule 4;
6. Chapter 5
5. Driver's Uniform:
The driver of a public service vehicle other than driver of State Transport Service
(STS), while on duty, shall wear khaki uniform with a name plate in Hindi & English affixed
on it. The driver of STS shall wear uniform as prescribed by the STS of A&N Administration.
6. Fee for issue of a Medical Certificate
The fee for the issue of a Medical Certificate Under Section 8(3) of Motor Vehicle Act in
connection with a driver/conductor's license shall be maximum of Rs 50/-.

7. Exemption from Payment of Fee

1. Content Index
2. Chapter 1
No fee shall be charged from the officers of the diplomatic missions and their wives
3. Chapter 2
for the driving test and for the issue or renewal of the driving license. However, non-
4. Chapter 3
diplomatic persons of the missions or their employees of Indian Nationality shall not be
5. Chapter 4
entitled to such exemption;
6. Chapter 5
8. Communication of particulars of Driving Licenses granted by one licensing

authority to another licensing authority
a) In case a driving license issued by an other State or Union Territory of India is submitted
for renewal, and there are good reasons to suspect that it is not genuine or some tampering
has been done, the licensing authority by sending one copy of the renewing form to it and
requesting that authority to verify the same within thirty days by post under certificate of
posting
b) In case of renewal of driving license for a vehicle other than MMV/HMV;
i) If particulars are verified by the issuing authority, the licensing authority shall endorse A&N
number on the licence and renew the same, or
ii) If no reply is received from the issuing authority within stipulated period, the applicant may

be put to driving test as defined under sub-rule(3) of Rule 15 of Central Motor Vehicle Rules,
1. Content Index 1989 at Government Motor Driving Training School;
2. Chapter 1
c) In case of renewal of Driving license for MMV/HMV, the applicant be put to a driving test
3. Chapter 2 as if not defined under Rule (3) of Rule 15 of the Central Motor Vehicle Rules, 1989 at
4. Chapter 3 Government Motor Driving Training School irrespective of intimation/non-intimation of the
particulars from issuing authority.
5. Chapter 4
d) If the applicant qualifies the aforesaid driving test, he shall be issued the driving license
6. Chapter 5
after taking from him an affidavit on a non-judicial stamp-papers of Rs. 2/- value regarding
the genuineness of the license and its endorsements. Thereafter, the A&N Number shall be
endorsed on that license and renewed. The fact shall also be communicated to the original
licensing authority by post, under certificate of posting
e) In case the reply from issuing authority indicates that the particulars of driving license
have been tempered with or the license is not genuine then the licensing authority shall
seize the driving license and may initiate appropriate legal actions.
9. Duties, functions and conduct of Transport Vehicle Drivers and Conductors

a) The driver and conductor of a vehicle Shall, as far as may be reasonable possible having
regards to his duties, be responsible for the due observance of the provisions of the Act and
of these rules and of the conditions of the permit relating to the vehicle;
b) Shall not smoke in or on the vehicle during a journey or when it has passengers on board
and shall not be, while on duty, under the influence of drink or drug.

c) Shall behave in a civil and orderly manner to passengers and intending passengers;
1. Content Index
d) Shall be cleanly dressed in such a manner as Transport Authority of Administration may
2. Chapter 1
specify;
3. Chapter 2
e) Shall maintain the vehicle in a clean and sanitary condition;
4. Chapter 3
f) Shall not interfere with persons mounting or preparing to mount on other vehicles;
5. Chapter 4
g) Shall not allow any persons to be carried in any public service vehicle in excess of the
6. Chapter 5
seating capacity specified in the certificate of registration of the vehicle and any additional
number permitted under the terms of permit to be carried standing in the vehicle;
h) Shall not willfully deceive or refuse to inform any passenger of intending as to the
destination or route of the vehicle or as to the fare of any journey;
i) Shall not, save for good or sufficient reason, refuse to carry any person tendering the legal
fare;
j) Shall, where goods are carried on the vehicles in addition to the passengers, take all
reasonable precautions to ensure that the passengers are not endangered or unduly
inconvenienced by the presence of the goods;
k) Shall not, save for good and sufficient reasons require any persons who has the legal fare
to alight from the vehicle before the conclusion of the journey;

1. Content Index
l) Shall not loiter or unduly delay upon any journey but shall proceed to his destination as
2. Chapter 1
near as may be in accordance with the time table pertaining to the vehicle or where there is
3. Chapter 2
no such time table, with all reasons dispatch;
4. Chapter 3
m) Shall, in the event of a stage carriage being unable to proceed to its destination on
5. Chapter 4
account of mechanical breakdown or other cause beyond the control of the driver or the
6. Chapter 5
conductor, arrange to convey the passengers to their destination in some other similar
vehicle, or if unable to do so within a period of half an hour after the failure of the vehicle
shall on demand refund to each passenger a proper proportion of fare relating to the
completion of he journey for which the passenger has paid the fare;
n) Shall not, in the case of stage carriage cause or allow any thing to be placed in the
vehicle in such a manner as to obstruct the entry or exit of passengers;
o) Shall station themselves at the parking places provided within the premises of the
aerodrome or port and shall not approach any person for the purpose of getting his vehicle
hired;
p) Shall strictly adhere to the notified timetable of arrival departure of vehicle from authorized
depots and bus stands for the convenience of the passengers;

1. Content Index
q) Shall not act as an guide to any person or a tout to any shopkeeper;
2. Chapter 1
3. Chapter 2
r) Shall carry Government Servant in connection with enforcement of the provisions of the
4. Chapter 3
Act and these rules specified by the Transport Authority of Administration without charging
5. Chapter 4
any fare;
6. Chapter 5
s) Shall, in the event of a motor cab fitted with a taxi meter, not set in motion before it is
hired and shall stop it immediately when the hirer has noted the reading and the hiring
charge are paid;
t) Shall, in the event of a motor cab fitted with a taxi meter which is hired by any person
being unable to proceed owing to any defect in the mechanism of the tyres of the cab, at
once lower the flag to "stopped" or "Break down" and shall not start his meter until such time
the defect is remedied;
u) Shall not cover or obscure the face of a taxi meter under any circumstances, or at any
time and shall not without reasonable excuse, refuse to let the cab for hire when the flag is in
vertical position;

1. Content Index
v) Shall, on demand on by any Police officer in uniform or any officer of the Transport
2. Chapter 1
Department in uniform or any member of the Transport Authority of Administration, produce
3. Chapter 2
his license or badge for inspection;
4. Chapter 3
5. Chapter 4
w) Shall not allow anybody to sit at the bonnet of the vehicle;
6. Chapter 5
x) Shall not allow anybody to sit along with him at the driver's seat;
10. Exemption of Driver's of road rollers

The driver of a road roller may be exempted from the provisions of the rules under this
chapter
11. Maintainance of UT Register of driving license in Zonal office and head office
The Union Territory register of driving licenses, as prescribed under Sec. 26 of the Act, shall
be maintained by the officer-in-charge of each Zonal office who shall submit a copy thereof
th
every month by the 5 day of the next succeeding month to the Joint Director of the

Transport Department specifically authorised in writing and who shall consolidate and supply
1. Content Index
a copy of the same to the Central Government as required under Sub-Section (2) of Sec. of
2. Chapter 1 th
3. Chapter 2 this Act, i.e. a printed copy of the consolidated register quarter wise by the 15 day of the
next following quarter in Form 10.
4. Chapter 3
5. Chapter 4
12. Authorization of Registered Medical Practitioner
6. Chapter 5
a) Commissioner may refer any applicant who has been issued medical certificate by any
Registered Medical Practitioner for second opinion to a medical officer of any Govt.
Hospital/Dispensary, as deemed fit.
b) Commissioner may refer any case to the Medical Council, where the Registered Medical
Practitioner is registered for taking necessary action as deemed fit against that Regd.
Medical Practitioner who has issued Medical fitness Certificate to an unfit person.
c) Commissioner may debar any Regd. Medical Practitioner from issuing Medical Certificate
for the purpose of obtaining a license under these rules incase he has charged more than
the fee prescribed under Rule 8.

The Commissioner if he so considers necessary may by an order and for reasons to

1. Content Index
be recorded therein, disqualify any Regd. Medical Practitioner from issuing any certificate for
2. Chapter 1
consideration for the Transport Department, under the Act or these Rules.
3. Chapter 2
Procedure for registration of new vehicle
4. Chapter 3
5. Chapter 4
After purchasing the vehicle from a dealer, the applicant shall produce the following
6. Chapter 5
application/documents/fees and tax challan
1. Application form CMV20 (in duplicate if the vehicle is covered with HPA/Lease/Hire
purchase) (signature of the financier in case of HPA/Hypothecation/Lease)
2. Sale Certificate in form CMV21.
3. Valid Insurance certificate.
4. Proof of Address (Any one of the following )
 Ration Card
 Passport
 LIC Policy
 Electoral Roll
 Pay slip issued by any office of the Central Government or a State

 Government or a Local body.

1. Content Index
 Self swearing Affidavit by an applicant before an executive
2. Chapter 1
3. Chapter 2
Magistrate or a First Class Judicial Magistrate or a Notary Public as evidence of
4. Chapter 3
address.
5. Chapter 4
6. Chapter 5
5. Temporary Registration issued by the Registering Authority or Trade Certificate
issued by the Dealer.
6. Road Worthiness Certificate in form CMV22.
7. Form CMV22A in case of Body built vehicle (EX. Goods vehicle, bus etc.).
8. Customs clearance certificate in case of imported vehicle with licence and bond.
9. Prescribed fee amount to be paid at R.T.O Counter/Treasury.
10. Tax payable after assessment (depending upon the category of vehicle).
11. Registration Fee, Fitness Certificate issue and permit fee in case of transport vehicle,
Hypothecation entry fee to be paid after assessment.
12. Income Tax PAN Number (PAN Card zerox copy) or Form 60 or Form no. 61 (in case
of Agriculturist).
13. Bonafide agriculture certificate issued by the Tahasildar in case of registration of

Tractor-Trailor unit used for agriculture. In case of new trailor, design approval
1. Content Index
proceedings issued by Commissioner for Transport to be produced.
2. Chapter 1
3. Chapter 2
Interstate National Permits
4. Chapter 3
5. Chapter 4
Though the Transport sector has much to do with interstate trade, my memory
6. Chapter 5
prompts me that this particular requirement of 'permits' has genesis in the Motor Vehicles
Act. Movement of Food grains between states needed special permits under the Essential
commodities Act (I am not sure whether this requirement is still in vogue) and even National
Permit holding Vehicles needed special permits to transport food grains.
Under Motor Vehicles Act, State Governments can have their own rules and tax
structure to regulate public transport and road usage. Each state has different Annual Road
tax structure. Personal Vehicles are taxed at a lower rate and commercial vehicles are taxed
heavily in most states. A Commercial Vehicle paying prescribed annual tax in the state of
Registration can ply only in that state. Inter-state Border check posts levy a hefty 'per-diem
road tax' on such vehicles crossing the state border. Frequently plying vehicles can take a
'season ticket' by paying additional tax to get 'permit' to ply in additional states. Such

arrangements are presumably done on a reciprocal basis by the participating states. All
1. Content Index
India Permit is also issued under some such arrangements. Taxi Cars, Buses, Trucks are
2. Chapter 1
all covered under this. In short, it has more to do with Tax on Vehicles than interstate trade
3. Chapter 2
regulations.
4. Chapter 3
5. Chapter 4
All India Permit or Multi-state permit will only allow the Vehicle to ply on the roads of
6. Chapter 5
the other states. The class of vehicle determines the rate of tax and permit. Having obtained
one, it can carry any legally permissible goods interstate. Carrying goods like explosives,
spirit, petroleum products etc. need special additional permits pertaining to those goods from
the authorities controlling movement of such goods. What it cannot carry (food grains,
chemicals, or for that matter, contraband, terrorists etc) are governed by other laws. In case
of Goods transport, sales tax on the goods carried are to be paid or certified at the entry
point of each state, even by permit holding transporters.
Vehicles used as personal transport, though taxed at a lower rate in the state of
registration, can ply in any state in India, except protected areas, without paying additional
tax to other states. In case of long-term stay in the other state, you are expected to transfer
the registration of the vehicle to that state and get a new registration number (and pay tax

there!). Though freedom of movement is guaranteed by the Constitution, it does not bar
1. Content Index
reasonable restriction in the form of entry tax for private vehicles too. But no state has done
2. Chapter 1
it so far. However, even Private Vehicles have to pay toll tax for bridges etc. levied under the
3. Chapter 2
BOLT schemes, within the state of registration or outside it.
4. Chapter 3
5. Chapter 4
Harshal's friend may have traveled in a taxi car having permit to ply only in the state
6. Chapter 5
of its registration. While crossing to the neighboring state, that State's 'per-diem tax' (not the
actual name of the tax, the term is used only to indicate its nature) may have been levied at
the border check post.
Octoroi is a good source of income to the Municipal Corporations (and Check-naka

employees, of course). There was a move initiated by Dr. Manmohan Singh (or was it
Chidambaram?) to abolish Sales Tax and Octoroi through out country and replace it with
uniform Value Added Tax. After much haggling, Chief Ministers conference agreed in
principle (so I recall, correct me if I am wrong) and the scheme was to come effective from
April 2002. Looks like the deadline is passing by. Sales Tax / Octoroi check-nakas are good
source of income for bureaucrats / politicians, loss of which is not likely to be compensated
by the Center under the VAT scheme.

Traffic Rules
1. Content Index
2. Chapter 1
Basic Rules of the Road. Signals. Violation of Motor Vehicles Act.
3. Chapter 2
4. Chapter 3
The road accident rate in India is truly alarming. An estimated 3,00,000 accidents
5. Chapter 4
take place on Indian roads every year. The latest annual statistics indicate that over 80,000
6. Chapter 5
people are killed on Indian roads while the total economic loss owing to road accidents is
estimated to be over Rs. 3,600 crores. These figures do not reflect the human suffering and
social problems caused by accidents. Driving or riding a vehicle in India is becoming a
dangerous experience. And Indian roads like those of other Asian countries are becoming
veritable death traps.
Along with the ever-increasing population of both people and vehicles, comes the
growing realization that this problem has to be combated on all fronts. Studies conducted in
India and other parts of the world have indicated that negligent road-user behaviour is the
main factor in 65 per cent of the accidents and a contributing factor in about 90 per cent of
the cases.

The umbrella piece of legislation with regard to Indian road rules is titled 'Rules of the
1. Content Index
Road Regulation'. The latest edition was brought into force on July 1st, 1989. The act
2. Chapter 1
broadly deals with the rules and regulations that are applicable to two, three and four
3. Chapter 2
wheeler users across the country.
4. Chapter 3
5. Chapter 4
The first 12 sub-sections of this legislation deal with the actual guidelines to be
6. Chapter 5
followed while driving or riding on the road. In addition to regular road safety rules, there are
specific instructions such as making way for fire service vehicles and ambulances. It is
followed by a specific section on hand signals and their equivalents through mechanical and
electrical devices. Subsection 15 is an extensive one that deals with the safe parking of a
vehicle. Subsections 16 to 22 are also elaborate in themselves, dealing with areas such as
visibility of lamps and registration marks, one-way traffic and safe towing.
The final sub-section of the Rules of the Road Regulation deals with the documents
that a driver/rider needs to carry:

1. Content Index 1) A driving license

2. Chapter 1 2) Certificate of Registration
3. Chapter 2 3) Certificate of Taxation
4. Chapter 3
4) Certificate of Insurance
5. Chapter 4
5) A Fitness Certificate
6. Chapter 5
The Rules of the Road Regulations (1989) is a must-read for road users on their way to
responsive and responsible driving.
How to get a Learner's License
Forms to be filled:
Form No. 1: Medical Certificate.

(In this, part of the form has to be filled up by you and the other by A registered Medical
Doctor. A photo has to be pasted in the form which has to be signed and attested with seal

across the photo by the Doctor.)

1. Content Index
2. Chapter 1
Form No. 2: Application for Learner‟s License.
3. Chapter 2
4. Chapter 3
Form No. 3: Application in duplicate.
5. Chapter 4
6. Chapter 5
Documents needed:
 Proof of age - Xerox copy of Birth Certificate or Passport or School or College
certificate along with original for verification.
 Proof of address - Xerox copy with original for verification, of Ration Card or Election
I.D. Card or Passport or LIC policy or Electric or Telephone bill or Property tax receipt
or Payslip issued by Govt. if employed in Govt.
 Photos - 4 including 1 affixed on Form 1 (Passport size)
 Proof of address - Xerox copy with original for verification, of Ration Card or Election
I.D. Card or Passport or LIC policy or Electric or Telephone bill or Property tax receipt
or Payslip issued by Govt. if employed in Govt.
 Photos - 4 including 1 affixed on Form 1 (Passport size)

Fee to be paid
1. Content Index
Rs.15/- for each category of vehicle.
2. Chapter 1
3. Chapter 2
Test
4. Chapter 3
5. Chapter 4
At the time of your getting the application form from A.A.S.I., this book will be given to
6. Chapter 5
you and when you present the application, questions on both traffic rules and signs and
signals will be asked and only if you satisfactorily answer, you will be allowed to get the LLR
papers.
Collection of LLR Papers:
After the test at AASI, you will be required to go to RTO‟s Office on a date specified,
to sign the register and collect the LLR papers.
Once you have collected your Learners License, you can drive the vehicle for which
you have applied for. It can be done only with an instructor or a friend or a relative who has a
valid driving license, by your side if you are driving a car or behind you on the pillion if it is a
two-wheeler.

1. Content Index
Further you must paste or paint the „L‟ sign at the back and front of your vehicle in red
2. Chapter 1
to alert other road users. This is absolutely necessary. As a learner in a two-wheeler, you
3. Chapter 2
cannot carry any other person except the person who is teaching you how to drive.
4. Chapter 3
Validity of LLR
5. Chapter 4
6. Chapter 5
LLR is valid for 6 months. If within 6 months you do not apply for the regular license,
you will have to apply again for another LLR. However, after a minimum period of 1 month,
you can apply for a regular Driving License from that date.
Procedure for applying for Permanent License
After you have learned driving properly and are ready for a test please come with the
following forms:
 Form 4
 Original Learner's License
 3 Stamp size photos

You must bring the category of vehicle for which you are applying for permanent license,
1. Content Index
based on your learner's license. A driving test would be conducted by our expert and only if
2. Chapter 1
you are found fit in all aspects, your forms will be forwarded with "Test Passed" Certificate
3. Chapter 2
for Permanent Driving License to the License Issuing Authority. Since the laminated Driving
4. Chapter 3
License will be issued, you will have to come to the concerned RTO‟s office on the day
5. Chapter 4
specified by AASI to be video graphed and get the Driving License.
6. Chapter 5
Fees to be paid
Rs.60/- for one category of vehicle.
Rs.15/- for additional categories.
Rs.55/- Additional endorsement in existing license
Basic rules of the road

 Keep left allowing the vehicles from the opposite direction to pass.
 Give way to all traffic on your right, especially at road junctions and round abouts.
 While turning left or right, give way to vehicles going straight.
 While turning left, keep to the left side of the road and turn close to the left side of the

road to which you enter.

1. Content Index
 Slow down at road junctions, intersections and pedestrian crossings. You must also
2. Chapter 1
slow down near school zones, temple areas etc., where a lot of pedestrians and
3. Chapter 2
vehicle traffic move. Signal before you make any maneuver indicating your intention
4. Chapter 3
so that the other road users can adjust accordingly.
5. Chapter 4
 Always use a helmet if you are driving a two-wheeler and always see that when you
6. Chapter 5
use the helmet, the strap is fixed properly.
 Stick to the speed limit and remember that speed limit is related to the traffic
condition.
 Remember that the stopping distance of your vehicle depends on the speed at which
you are driving.
If you are driving at 40 Kms. per hour, the braking distance would be 22 mts. But if
you are driving at 60 Kms. per hour, the braking distance will be 42 mts.
 Keep adequate distance from the vehicle ahead to avoid collision.
 Yellow lines should not be crossed, even while over-taking.
 At road junctions or intersections, do not park the vehicle beyond the stop line.
 Remember that at pedestrian crossings, the pedestrian has the right of way.
 At the signal, do not stop your vehicle on the Pedestrian Crossing but stop it within

the stop line.

1. Content Index
 Two wheelers are meant only for two. Do not carry children additionally.
2. Chapter 1
 Do not start on the amber light. Wait for the green.
3. Chapter 2
 Overtake only on the right side and do not overtake on bridges, narrow roads,
4. Chapter 3
junctions, school zones and pedestrian crossings. Do not overtake when one vehicle
5. Chapter 4
is already overtaking the vehicle which you want to overtake.
6. Chapter 5
 Never drive in a zigzags manner.
You can observe all the above only if you are patient, considerate and careful.
Know your signs
In the world of communications, signs form a vital part. Traffic signs are an integral
part of the system of safeguard for the safety of road users.
Traffic signs may be classified into three categories:-
Mandatory signs :-

They are also known as regulatory signs. All mandatory signs are indicated in a circular
1. Content Index
form and they have to be followed compulsorily.
2. Chapter 1
3. Chapter 2
Cautionary signs :-
4. Chapter 3
These are meant for your safety. These are given in triangular form.
5. Chapter 4
6. Chapter 5
Information signs : -
These signs are those which provide information to help you. They are in Blue Color in
square shape.
Mandatory signs
 Violation of these traffic signs, which denote a specific traffic regulation is a legal
offence under Section 119 of Motor Vehicle Act.
 Speed limit, stop and give way signs are the most important of these signs. The other
major signs relate to prohibiting entry or turn and permitting entry or turn only in one
direction. No parking signs and signs relating to No stopping or standing and No „U‟
turn, No entry etc. should be observed scrupulously and violation of these signs

would affect the road users by creating jam and accidents.

1. Content Index
2. Chapter 1
Cautionary signs: -
3. Chapter 2
4. Chapter 3
Sins denoting Pedestrian crossing, School zones and Intersections are the most
5. Chapter 4
important among the cautionary signs.
6. Chapter 5
As already pointed out in the pedestrian crossing, the pedestrian has the right of way
and you should not proceed when the pedestrian is crossing nor should you stop the vehicle
on the pedestrian crossing hindering his movement.
In school zones, you have to drive very cautiously and reduce the speed since any
time a boy or girl can run or dart across.
Signals
Junctions -

In junctions where there are no traffic signals, there may be a policeman manning the
1. Content Index
junction giving hand signals. It is absolutely necessary for your own safety and for the safety
2. Chapter 1
of others that you should follow these signals.
3. Chapter 2
4. Chapter 3
It is essential that you signal intention of your vehicle movement correctly and well in
5. Chapter 4
advance so that other road users can be aware of what you are going to do.
6. Chapter 5
While stopping the vehicle or slowing down, it is important to caution the driver
behind you by using hand signals. The sign for slowing down is to extend your right arm
fully, palm facing downward and moving the arm up and down.
The sign for showing your intention to stop is to put out the forearm vertically
upward, the palm facing forward.
While turning, give the correct signals as to whether you are turning right or left or
Making a „U‟ turn.
Signal well in advance so that the vehicle coming behind you can adjust. Signal

continuously till you have completed the turn.

1. Content Index
2. Chapter 1
If you are using the signal indicator in the vehicle, do not forget to switch if off as
3. Chapter 2
soon as you have completed your turning.
4. Chapter 3
5. Chapter 4
While changing lanes, put on your turn signal. Make sure through your mirror
6. Chapter 5
whether the traffic behind you is sufficiently behind and then change into lanes slowly and
smoothly.
When other vehicles wish to overtake you, do not speed up. Allow them to overtake if
there is space and show a signal by stretching the right hand out, palm facing front and
moving the arm front and back.
Some basic precautions to avoid accidents
Most accidents happen due to over speeding and rash driving. When you overspend,
your field of vision itself will be reduced as the speed increases.

1. Content Index
 Remember that the speed limit is only the maximum permissible speed and that
2. Chapter 1
actual speed should be related to the traffic and road conditions.
3. Chapter 2
4. Chapter 3
 Front and Rear doors of the car particularly the right hand side door should be
5. Chapter 4
opened only after making sure that there is no vehicle, cyclist or even a pedestrian
6. Chapter 5
coming along close to the door.
 In places where it is indicated as accident-prone areas, you must drive very carefully.
 When there is obstruction ahead, do not drive on the other side of the road without
waiting and giving way to the on coming traffic.
 Never exceed speed limits even if the road is free and even if there is no policeman
around. Never be a rash driver.
 Be a defensive driver by anticipating situations then can lead to accidents. Expect the
unexpected.

1. Content Index
 Keep a safe distance between the vehicles by avoiding driving very close behind the
2. Chapter 1
vehicle in front.
3. Chapter 2
4. Chapter 3
 Avoid turning your vehicle abruptly.
5. Chapter 4
6. Chapter 5
 Never drive when you are overtired since you cannot be alert.
 Any distraction, whether conversation or looking at advertisement hoardings should

be avoided.
 During night driving, dip your headlights and do not direct the full glare of your
headlight at the on coming vehicle even if he does not dip his headlight.
 Keep your vehicle, particularly brake, in good condition.
 Finally your attitude, frame of mind and behavior are also very important.

 Courtesy and consideration to other road users, patience and responsible behavior
1. Content Index
can always save you and other road users from accidents.
2. Chapter 1
Tips for emergencies
3. Chapter 2
4. Chapter 3
In case of Brake failure:
5. Chapter 4
 First do not panic; when you panic, you cannot take correct action.
6. Chapter 5
 Take your foot off the accelerator and rapidly change gear down.
 Use hand brake.
 Steer to the side.
In case of steering failure:

 Reduce speed
 Apply brakes
In case of Tyre burst:

 Hold the steering wheel tight to control the pulling and halt the car quickly.
In case of Skidding:

1. Content Index
 It can occur due to bad tyres, due to spilt oil on roads and wet surface in rainy
2. Chapter 1
weather. It can also occur when you apply sudden brake or take a sharp fast turn.
3. Chapter 2
4. Chapter 3
 While it is skidding do not apply brake but gently steer in the direction in which it is
5. Chapter 4
pulling.
6. Chapter 5
Precautions to be taken at intersections

 At intersections, stop, look and then enter.
 Always give way for traffic on the main road.
 At the intersection of two main roads give way to traffic coming from your right.
 At all round about, traffic on the right has preference.
Documents to be kept while driving

 Valid Driving Licence.
 Vehicle Registration Certificate.
 Road Tax Token (Disc)
 Pollution under Control Certificate.

 Current Insurance Certificate.

1. Content Index
2. Chapter 1
Defects/violations under motor vehicles act/rules
3. Chapter 2
4. Chapter 3
Violation of traffic rules and regulations are punishable both under City Traffic Police
5. Chapter 4
rules and also under Motor Vehicle Act. The common violations for which Police Challan are
6. Chapter 5
given is listed for information and we hope and wish that you will not violate any rule so that
there will be no need for receiving any such challan and paying fine.
Police note
 Driving a vehicle under the influence of liquor (Sec. 185 Motor Vehicle Act).
 Driving without valid Driving Licence (See. 3 rd with Sec. 181, Motor Vehicle Act).
 Driving at Speeds that exceed limits (Sec. 183, M.V.Act)
 Driving with only one light in front (Rule 37 (xii) read with Sec. 177, Motor Vehicle
Act).
 Using dazzling lights (Rule 405 read with Sec. 197, M.V. Act).
 Using the horns in a forbidden area (Rule 403 read with Sec. 177, Motor Vehicle Act).
 Use of air horn / musical horn (Rule 402 Motor Vehicle Act).

 Parking in no parking areas (Rule 37(x)read with Sec. 177, M.V. Act).
1. Content Index
 Vehicle emitting excess smoke (Rule 115 (I) C.M.V. Rule)
2. Chapter 1
 Failure to give proper signals (Sec. 121 read with Sec. 117, M.V.Act).
3. Chapter 2
 Rash driving (Sec. 184, M.V. Act).
4. Chapter 3
 Failure to stop vehicle when required by any Police Officer in Uniform (Sec. 132 read
5. Chapter 4
with Sec. 177, M.V. Act).
6. Chapter 5
 Non-compliance of directions given by any Police Officer in the regulation of traffic in
public places (Sec. 119, M.V. Act read with 179, M.V. Act).
 Failure to observe the rule of the road (Rule 37(i) read with Sec. 177 M.V. Act).
 Violations of all restrictions, (Rule 411 read with Sec. 177 M.V. Act).
CHAPTER 3
OFFENCES PUNISHABLE UNDER MOTOR VEHICLES ACT
Punishable Act
 Traffic regulations, traffic signals are given in Motor Vehicle Act to ensure
orderly traffic and safe journey.
 Self observance of rule is the best method to ensure safety.
| CHAPTER 3 114
 Violation of any rule is punishable and so also violation of provisions of motor

1. Content Index
vehicles act
2. Chapter 1
3. Chapter 2
 For any violation of Motor Vehicle Act fine upto Rs.100/- can be imposed and if
4. Chapter 3
the offence is repeated fine can even extend upto Rs.300/-.
5. Chapter 4
6. Chapter 5
 Violation of speed limit can punished by even upto Rs.300/- and for repeated
offences even upto Rs.500/-
 Disobedience of any traffic signs or directions is also punishable with fine upto
Rs. 500/
 Very serious offences like dangerous driving, driving without licence, causing
grievious injury, are all punishable, even with imprisonment.
 Causing fatal accidents due to rash, negligent driving can result in

imprisonment for two yeaRs or fine or both. It is almost treated as a murder
without motive.
| OFFENCES PUNISHABLE UNDER MOTOR VEHICLES ACT 115

1. Content Index
 If by rash and negligent driving, grievous injury is caused to anyone, it is also
2. Chapter 1
punishable by two yeaRs imprisonment or Rs.1000/- as fine, or both. If the
3. Chapter 2
injury is simple, the imprisonment period will be upto 6 months. It is also liable
4. Chapter 3
for fine upto
5. Chapter 4
Rs.500/- and both imprisonment and fine can also be awarded.
6. Chapter 5
 Even if anyone is endangered by rash and negligent driving it is punishable by

6 months imprisonment or a fine of Rs.100/- or both.
 Driving without licence is not only risky but also liable for punishment with 3
months imprisonment or a fine of Rs.500/- or both.
 Drinking is harmful to health and drunken driving is harmful to otheRs also.

Hence drunken driving is punishable with imprisonment for 6 months, if it is a
fiRst offence or punishable with fine upto Rs.2000/- or even both can be
awarded. If the offence is repeated it is punishable with imprisonment which
can extend event upto 2 yeaRs or a fine of Rs.3000/- or even both.

Over speed
1. Content Index
2. Chapter 1
For every Motor vehicle speed limit is prescribed in the M.V. Act to ensure safety for
3. Chapter 2
the driver and other road users.(Section 112 of M.V. Act 1988)
4. Chapter 3
5. Chapter 4
The prescribed limit is 40 Kms. Your vehicle may be capable of going at even the
6. Chapter 5
double the speed than this and your enthusiasm or sometimes even some urgent matter
may make you drive at full capacity of the vehicle or at speed far exceeding the limit.
But please remember that not only violating the law is punishable but also can and
does often result in accident.
"Speed thrills but also kills" is not just a slogan, it is the bitter truth.
Many accidents are caused by over speeding. Please don‟t be a part of it for your
sake, for your family‟s sake for other‟s sake and also for the sake of not having to pay fine
upto Rs.400/- or Rs.1000/- (if it is a repetitive offence).

Even if you make your employee exceed the speed limit you will be punishable with
1. Content Index
a fine of Rs.300/- and Rs.500/- if it is a respective offence. (Section 183 of M.V. Act, 1988)
2. Chapter 1
3. Chapter 2
No racing in a public road
4. Chapter 3
5. Chapter 4
You must not take part in a race or speed contest of any kind with motor vehicles in
6. Chapter 5
any public place without the written consent of the State Government. If you do so violating
the rules you will be liable for punishment of imprisonment upto a month or a fine upto
Rs.500/- or both. (Section 189 of M.V. Act).
Dangerous driving
Speed has relationship to the Nature, Condition and use of the place. If you drive at a
higher speed or even at a speed within the prescribed speed limit but in a manner which is
dangerous to other road useRs without considering the nature, condition and use of the
place and traffic, it can result in major accidents. Therefore, M.V. Act has prescribed the
major punishment of imprisonment upto 6 months of fine upto Rs.1000/-. (Section 184 of
M.V. Act 1988)

1. Content Index
If the offence is repeated within 3 years naturally the law views it seriously and has
2. Chapter 1
prescribed the punishment of imprisonment upto 2 years or fine expending upto Rs.2,000/-
3. Chapter 2
or even both depending on the gravity of the offence.
4. Chapter 3
5. Chapter 4
Drunken driving
6. Chapter 5
Drink and driving does not mix well. Driving by a drunken person or driving under the
influence of drug is punishable as per Sec. 185 of M.V. Act.
At the time of driving there should be no alcohol in the blood even in the smallest
quantity. Similarly, if you are under the influence of a drug to an extent that makes you
incapable of exercising proper control of the vehicle and drive the vehicle, you are liable to
be punished with imprisonment upto 6 months of fine extending upto Rs.2,000/- or both.
If the offence is repeated the punishment is higher being imprisonment that can be
extended even upto 2 years of fine or Rs. 3,000/- or both.
Don‟t leave your vehicle dangerously

It is unlawful to abandon or leave any vehicle or trailer in any public place in such a
1. Content Index
manner of position that can cause danger, obstruction or undue inconvenience to other
2. Chapter 1
users of public place.
3. Chapter 2
(Section 122 of M.V. Act)
4. Chapter 3
5. Chapter 4
6. Chapter 5
Your duty in case of causing an accident with injury to a person
Your duty is to ensure not only safety for you but also safety to other road users. If by
any reason you cause an accident and a person is injured or property of any person is
damaged, you as a vehicle driver or person in charge of the vehicle are duty bound to take
all reasonable and responsible steps to provide medical care for the injured person and
where necessary take the injured person to the nearest hospital unless the injured person or
his guardian in case he is a minor desires not to go to the hospital.
However if on account of mob fury or any other reason beyond your control it is not
practicable to give medical attention to the injured peRson or take him to the hospital then it

will be excusable under law.

1. Content Index
2. Chapter 1
You are also duty bound to report to Police the nature of accident, the circumstances of
3. Chapter 2
its occurrence to the nearest police office or police station. In case of not providing medical
4. Chapter 3
care to the injured the circumstance under which it was not done should be also reported to
5. Chapter 4
the nearest police station or police officer.
6. Chapter 5
Unattended vehicle beware
If you leave your vehicle unattended in a public place or abandon it, it is liable for
removal by the police.
If any motor vehicle is left unattended in any public place for 10 houRs or even if it is
in a permitted parking place it can be towed away under the instruction of the police officer.
If the vehicle is left unattended or abandoned or partially dismantled and is creating a

traffic hazard because of its location in the highway or causing impediment to the traffic it
can be immediately removed by towing under the instruction of the Police officer. In all such

cases you as the owner of the vehicle will be responsible for all the towing costs as well as
1. Content Index
any other penalty.
2. Chapter 1
3. Chapter 2
4. Chapter 3
5. Chapter 4
6. Chapter 5
For the attention of driving license holder
BEWARE ! Under the provisions of Motor Vehicle Act, you can be disqualified from
holding a driving license or license can be revoked if you come under any of the following
categories:
 If your conduct as driver of motor vehicle has shown that your driving is dangerous to
the public.
 If you are a person under the age of 18 years.
 If you are a habitual drunkard or addict to any narcotic drugs.
 If you obtained driving license by fraud or misrepresentation or by illegal method.
 If you have used the vehicle in the commission of cognizable offence.
CHAPTER 4 - INSURANCE
| CHAPTER 4 - INSURANCE 122

1. Content Index
Importance of Insurance
2. Chapter 1
3. Chapter 2
The insurance of vehicles is most common in this age and almost all people like to
4. Chapter 3
insure their vehicles for prevention of loss in any possible accident. To insure your vehicle,
5. Chapter 4
there are certain premiums of insurance and you have to adopt any one of them.
6. Chapter 5
Unfortunately, if your car faces accident or someone steals your car, you will inform the
insurance company and give them full details about the accident. The insurance company
will pay you for repairing in case of accident or give full amount if someone has stolen your
car. These are all insurances are offered for cars, trucks and other motor vehicles. The basic
use of this insurance system is to offer safety and security against the losses sustained
because of road accidents.
The insurance payment can be commanded by the government insurance company

in according to the structure of policy, set by the government. On the other hand, when the
government company does not mandate the premium, it generally approves from the
computations of an actuary stand on numerical data. Both teenage male and female drivers
can hire the vehicle insurance premiums easily. However, the young drivers are provided

discount on the vehicle insurance. There are a number of cheapest vehicle insurance
1. Content Index
companies in the world, but the Endsleigh presents the cheap car insurance quote at very
2. Chapter 1
low and affordable prices. If you want suitable insurance for both men and women that are
3. Chapter 2
looking for cheap car insurance quotes, you can try the amazing Endsleigh Company.
4. Chapter 3
5. Chapter 4
Motorcycle Insurance
6. Chapter 5
Motorcycle insurance is a method of sharing the dangers of driving between you and
your insurance company. Motorcycle insurance is one of the things that you require to be
anxious about. It will be better for you to take an insurance policy for your bike. Motorcycle
insurance is the insurance for your car or boat. A smallest amount of treatment is required
and you can adapt your insurance policy to suit your requirements. Motorcycle insurance is
also described as the insurance of motorcycles. Motorcycle insurance is specially intended
to give customers the treatment they require. In fact, motor cycle insurance policy gives
them peace of mind out on the open road. The main reason of motorcycle insurance is to
protect you from monetary loss, if you have an accident while driving your motorcycle
If you want to insure your motorcycle, you should have the information about

motorcycle insurance. It is a fact that all motorcycle insurance policies are not the same.
1. Content Index
Always take a cheap motorcycle insurance policy. The best way to ensure that you are
2. Chapter 1
getting the cheapest probable motorcycle insurance is to perform your homework. Of
3. Chapter 2
course, not all insurance policies are the same. The key thing to keep in mind before
4. Chapter 3
purchasing any type of motorcycle insurance is to always get more than a few quotes,
5. Chapter 4
contrast the cover, then decide the policy that best suits you and an exacting motorcycle you
6. Chapter 5
want to insure. The better way of purchasing motorcycle insurance is to contact with an
agent or insurance broker.
Vehicle Insurance
The insurance of vehicles is most common in this age and almost all people like to
insure their vehicles for prevention of loss in any possible accident. To insure your vehicle,
there are certain premiums of insurance and you have to adopt any one of them.
Unfortunately, if your car faces accident or someone steals your car, you will inform the
insurance company and give them full details about the accident. The insurance company
will pay you for repairing in case of accident or give full amount if someone has stolen your
car. These are all insurances are offered for cars, trucks and other motor vehicles. The basic

use of this insurance system is to offer safety and security against the losses sustained
1. Content Index
because of road accidents.
2. Chapter 1
3. Chapter 2
The insurance payment can be commanded by the government insurance company
4. Chapter 3
in according to the structure of policy, set by the government. On the other hand, when the
5. Chapter 4
government company does not mandate the premium, it generally approves from the
6. Chapter 5
computations of an actuary stand on numerical data. Both teenage male and female drivers
can hire the vehicle insurance premiums easily. However, the young drivers are provided
discount on the vehicle insurance. There are a number of cheapest vehicle insurance
companies in the world, but the Endsleigh presents the cheap car insurance quote at very
low and affordable prices. If you want suitable insurance for both men and women that are
looking for cheap car insurance quotes, you can try the amazing Endsleigh Company.
Third Party Insurance
In India, under the provisions of the Motor Vehicles Act, 1988, it is mandatory that
every vehicle should have a valid Insurance to drive on the road. Any vehicle used for social,
domestic and pleasure purpose and for the insurer's business motor purpose should be
insured.

Insurance is a contract whereby one party, the insurer, undertakes in return for a
1. Content Index
consideration, the premium , to pay the other, the insured or assured, a sum of money in the
2. Chapter 1
event of the happening of a , or one of various ,specified uncertain events.
3. Chapter 2
4. Chapter 3
Insurance developed from the fourteenth century as a means of spreading huge risks
5. Chapter 4
attendant on early maritime enterprises; life and fire insurance developed later. The main
6. Chapter 5
classes of insurance are life and other personal insurance, marine insurance, accident or
property insurance and liability insurance when the sum becomes payable when legal
liability is incurred as for personal injuries or professional negligence to another.
Motor third-party insurance or third-party liability cover, which is sometimes also

referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act. It
is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than
the two parties involved in the contract i.e. the insured and the insurance company. The
policy does not provide any benefit to the insured; however it covers the insured's legal
liability for death/disability of third party loss or damage to third party property.
This paper is an endeavour to explain the relevance of third party insurance? What is

third party insurance? Who is a third party? Why third party insurance is compulsory for all
1. Content Index
vehicles under the Motor Vehicles Act, 1988? What are the salient features of third party
2. Chapter 1
insurance? These aspects of the third party insurance have been explained with the help of
3. Chapter 2
various case laws.
4. Chapter 3
5. Chapter 4
What is Third Party Insurance?
6. Chapter 5
There are two quite different kinds of insurance involved in the damages system. One
is Third Party liability insurance, which is just called liability insurance by insurance
companies and the other one is first party insurance.
A third party insurance policy is a policy under which the insurance company agrees
to indemnify the insured person, if he is sued or held legally liable for injuries or damage
done to a third party. The insured is one party, the insurance company is the second party,
and the person you (the insured) injure who claims damages against you is the third party.
Section 145(g) "third party" includes the Government. National Insurance Co. Ltd. v.
Fakir Chand, “third party” should include everyone (other than the contracting parties to the

insurance policy), be it a person traveling in another vehicle, one walking on the road or a
1. Content Index
passenger in the vehicle itself which is the subject matter of insurance policy.
2. Chapter 1
3. Chapter 2
Salient Features of Third Party Insurance
4. Chapter 3
5. Chapter 4
Third party insurance is compulsory for all motor vehicles. In G. Govindan v. New India
6. Chapter 5
Assurance Co. Ltd. Third party risks insurance is mandatory under the statute .This
provision cannot be overridden by any clause in the insurance policy.
Third party insurance does not cover injuries to the insured himself but to the rest of the
world who is injured by the insured.
Beneficiary of third party insurance is the injured third party, the insured or the policy holder
is only nominally the beneficiary of the policy. In practice the money is always paid direct by
the insurance company to the third party (or his solicitor) and does not even pass through
the hands of the insured person.
In third party policies the premiums do not vary with the value of what is being insured

because what is insured is the „legal liability‟ and it is not possible to know in advance what
1. Content Index
that liability will be.
2. Chapter 1
3. Chapter 2
Third party insurance is almost entirely fault-based.(means you have to prove the fault of
4. Chapter 3
the insured first and also that injury occurred from the fault of the insured to claim damages
5. Chapter 4
from him)
6. Chapter 5
Third party insurance involves lawyers aid
The third party insurance is unpopular with insurance companies as compared to first party
insurance, because they never know the maximum amounts they will have to pay under
third party policies.
Historical Background of third Party Insurance
Chapter VIII of the 1939 Act and Chapter XI of the 1988 Act have been enacted on the
pattern of several English statutes which is evident from the report of „Motor Vehicles
Insurance Committee, 1936-1937‟In order to find out the real intention for enacting Ss.96 of
the 1939 Act which corresponds to Ss.149 of the 1988 Act, it is relevant to trace the
historical development of the law for compulsory third –party insurance in England. Prior to

1930, there was no law of compulsory insurance in respect of third party rights in England.
1. Content Index
As and when an accident took place an injured used to bring action against the motorist for
2. Chapter 1
recovery of damages. But in many cases it was found that the owner of the offending
3. Chapter 2
vehicle had no means to pay to the injured or the dependant of the deceased and in such a
4. Chapter 3
situation the claimants were unable to recover damages. It is under such circumstances that
5. Chapter 4
various legislations were enacted. To meet the situation it is for the first time „the Third
6. Chapter 5
Parties‟ Rights Against Insurance Act, 1930‟ was enacted in England. The provision of this
Act found place in S.97 of the 1939 Act which gave to the third party a right to sue insurer
directly. Subsequently, „the road traffic Act, 1930‟ was enacted which provided for
compulsory insurance for Motor Vehicles. The provisions of this Act were engrafted in S.95
of the 1939 Act and S.146 of the 1988 Act. It is relevant that under S.38 of the English Act
of 1930, certain conditions of insurance policy were made ineffective so far as third parties
were concerned .The object behind the provision was that the third party should not suffer
on account of failure of the insured to comply with those terms of the insurance policy.
Subsequently in 1934, the second Road Traffic Act was enacted. The object of this
legislation was to satisfy the liability of the insured. Under this enactment three actions were
provided .The first was to satisfy the award passed against the insured. The second was

that, in case the insurer did not discharge its liability the claimant had the right to execute
1. Content Index
decree against the insurer. However, in certain events, namely, what was provided in
2. Chapter 1
section Ss.96 (2)(a) which corresponds to section 149 (2)(a) of the 1988 Act, the insurer
3. Chapter 2
could defend his liability. The third action provided for was contained in S.10 (3) of the Road
4. Chapter 3
Traffic Act. Under this provision, the insurer could defend his liability to satisfy decree on the
5. Chapter 4
ground that insurance policy was obtained due to misrepresentation or fraud. This provision
6. Chapter 5
also found place in S.149 (2)(b) of the 1988 Act. While enacting the 1939 Act and the 1988
Act, all the three actions were engrafted in S.96 of the 1939 Act and Section 149 of the 1988
Act. However neither the 1939 Act, nor the 1988 Act conferred greater rights on the insurer
than what had been conferred in English Law. Thus, in common law, an insurer was not
permitted to contest a claim of a claimant on merits, i.e. offending vehicle was not negligent
or there was contributory negligence. The insurer could contest the claim only on statutory
defenses specified for in the statute. Thus while enacting Chapter VIII of the 1939 Act or
Chapter XI of the 1988 Act, the intention of the legislature was to protect third party rights
and not the insurers even though they may be nationalized companies.”
Prohibition on use of motor vehicles without statutory insurance policy, object of is to
enable the third party suffering injuries from use of the motor vehicle to get damages
irrespective of the financial capacity or solvency of the driver or the owner.

1. Content Index
Relevant Provisions of Motor Vehicles Act,1988
2. Chapter 1
3. Chapter 2
Chapter 11 (Section 145 to 164) provides for compulsory third party insurance, which
4. Chapter 3
is required to be taken by every vehicle owner. It has been specified in Section 146(1) that
5. Chapter 4
no person shall use or allow using a motor vehicle in public place unless there is in force a
6. Chapter 5
policy of insurance complying with the requirement of this chapter. Contravention of the
provisions of section 146 is an offence and is punishable with imprisonment which may
extend to three months or with fine which may extend to one thousand rupees or with both
(section 196).Section 147 provides for the requirement of policy and limit of liability. Every
vehicle owner is required to take a policy covering against any liability which may be
incurred by him in respect of death or bodily injury including owner of goods or his
authorized representative carried in the vehicle or damage to the property of third party and
also death or bodily injury to any passenger of a public service vehicle. According to this
section the policy not require covering the liability of death or injuries arising to the
employees in the course of employment except to the extent of liability under Workmen
Compensation Act. Under Section 149 the insurer have been statutorily liable to satisfy the
judgment and award against the person insured in respect of third party risk.

1. Content Index
Insurance Companies have been allowed no other defense except the following
2. Chapter 1
3. Chapter 2
(1) Use of vehicle for hire and reward not permit to ply such vehicle.
4. Chapter 3
(2) For organizing racing and speed testing;
5. Chapter 4
(3) Use of transport vehicle not allowed by permit.
6. Chapter 5
(4) Driver not holding valid driving license or have been disqualified for holding such license.
(5) Policy taken is void as the same is obtained by non-disclosure of material fact.
Section152. Settlement between insurers and insured persons
(1) No settlement made by an insurer in respect of any claim which might be made by a third
party in respect of any liability of the nature referred to in clause (b) of sub-section (1) of
section 147 shall be valid unless such third party is a party to the settlement.
(2) Where a person who is insured under a policy issued for the purposes of this Chapter
has become insolvent, or where, if such insured person is a company, a winding up order
has been made or a resolution for a voluntary winding up has been passed with respect to
the company, no agreement made between the insurer and the insured person after the

liability has been incurred to a third party and after the commencement of the insolvency or
1. Content Index
winding up, as the case may be, nor any waiver, assignment or other disposition made by or
2. Chapter 1
payment made to the insured person after the commencement aforesaid shall be effective to
3. Chapter 2
defeat the rights transferred to the third party under this Chapter, but those rights shall be
4. Chapter 3
the same as if no such agreement, waiver, assignment or disposition or payment has been
5. Chapter 4
made.
6. Chapter 5
Legal defense available to the Insurance Companies towards third party
The Insurance Company cannot avoid the liability except on the grounds and not any
other ground, which have been provided in Section 149(2). In recent time, Supreme Court
while dealing with the provisions of Motor Vehicle Act has held that even if the defense has
been pleaded and proved by the Insurance Company, they are not absolve from liability to
make payment to the third party but can receive such amount from the owner insured. The
courts one after one have held that the burden of proving availability of defense is on
Insurance Company and Insurance Company has not only to lead evidence as to breach of
condition of policy or violation of provisions of Section 149(2) but has to prove also that such

act happens with the connivance or knowledge of the owner. If knowledge or connivance
1. Content Index
has not been proved, the Insurance Company shall remain liable even if defense is
2. Chapter 1
available.
3. Chapter 2
4. Chapter 3
5. Chapter 4
Driving License
6. Chapter 5
Earlier not holding a valid driving license was a good defense to the Insurance
Company to avoid liability. It was been held by the Supreme Court that the Insurance
Company is not liable for claim if driver is not holding effective & valid driving license. It has
also been held that the learner's license absolves the insurance Company from liability, but
later Supreme Court in order to give purposeful meaning to the Act have made this defense
very difficult. In Sohan Lal Passi's v. P. Sesh Reddy it has been held for the first time by the
Supreme Court that the breach of condition should be with the knowledge of the owner. If
owner's knowledge with reference to fake driving license held by driver is not proved by the
Insurance Company, such defense, which was otherwise available, can not absolve insurer
from the liability. Recently in a dynamic judgment in case of Swaran Singh, the Supreme
Court has almost taken away the said right by holding;

(i) Proving breach of condition or not holding driving license or holding fake license or
1. Content Index
carrying gratuitous passenger would not absolve the Insurance Company until it is proved
2. Chapter 1
that the said breach was with the knowledge of owner.
3. Chapter 2
4. Chapter 3
(ii) Learner's license is a license and will not absolve Insurance Company from liability.
5. Chapter 4
6. Chapter 5
(iii) The breach of the conditions of the policy even within the scope of Section 149(2) should
be material one which must have been effect cause of accident and thereby absolving
requirement of driving license to those accidents with standing vehicle, fire or murder during
the course of use of vehicle.
This judgment has created a landmark history and is a message to the Government
to remove such defense from the legislation as the victim has to be given compensation.
Nature and Extent of Insurer’s Liability (section 147)
According to the provisions of this section the policy of insurance must be issued by

an authorized insurer. It must be as per requirements as specified in subsection. It must

1. Content Index
insure against liability in respect of death or bodily injury or damage to property of a third
2. Chapter 1
party. “Third party” includes owner of the goods or his authorized representative carried in
3. Chapter 2
the vehicle and any passenger of a public service vehicle.
4. Chapter 3
5. Chapter 4
6. Chapter 5
The policy of insurance must cover
1.Liability under the Workmen‟s compensation Act,1923 in respect of death or bodily injury
to any such employee
(a) engaged in driving the vehicle, or
(b) the conductor or ticket examiner if it is a public service vehicle ,or
2. Any contractual liability
Section 147 has to be given wider, effective and practical meaning so that it may benefit
various categories of persons entitling them to claim compensation from the insurer or the
insured or both. Insurer's liability commences as soon as the contract of insurance comes

into force. The liability remains in existence during the operation of the policy. If the existing
1. Content Index
policy is renewed the risk is covered from the moment the renewal of the policy comes into
2. Chapter 1
force. If the accident occurs before the renewal comes into existence, the insurer cannot be
3. Chapter 2
made liable. It is the primary duty of the vehicle owner to prove that his vehicle was insured
4. Chapter 3
with a particular company. If he fails to comply with it he will have to pay the entire amount of
5. Chapter 4
compensation in the case. In case where there is a dispute in respect of the vehicle having
6. Chapter 5
been insured by an assurance company, the tribunal must give its finding in the matter, it is
its duty to do so. After a certificate of insurance is issued it does not lie in the mouth of the
insurer to deny his liability. If the insurer has been a victim of fraud he can recover the
amount from the insured by a separate action against him.
Insurer’s liability to Vehicle-owner
A contract of insurance is a personal contract between the insurer and the insured. It
is for the purpose of indemnifying the insured for damage caused due to accident by the
vehicle, to a third party. To make the insurer liable the policy of insurance must be in the
name of the owner of the vehicle. Owner of the vehicle as defined in Section 2(30) is a

person in whose name the motor vehicle stands registered. A person in possession of a
1. Content Index
vehicle under a hire-purchase agreement or an agreement of lease or hypothecation is also
2. Chapter 1
covered by the definition, no matter he has exercised his option to purchase the vehicle or
3. Chapter 2
not.
4. Chapter 3
5. Chapter 4
Section 157(1) makes it clear that when the owner of a vehicle transfers the
6. Chapter 5
ownership of the vehicle, the policy of insurance and the certificate of insurance shall be
deemed to have been transferred in favor of the purchaser of the vehicle with effect from the
date of its transfer. This deemed transfer shall include transfer of rights and liabilities of the
said certificate of insurance and policy of insurance.
According to subsection (2) the transferee has to apply within 14 days from the date
of transfer to the insurer for effecting necessary changes in the certificate and in the policy of
insurance.
If the certificate of insurance and the policy are not transferred, the insurer could not be
made liable even though the vehicle is transferred. It is to be remembered that “an insurance
policy is a personal contract between the parties for indemnifying the insured in case of an
accident covered under the policy. If the vehicle is transferred by an insured to another

person, the insurance policy lapses upon the transfer. In such a case the benefit of the
1. Content Index
policy is not available to the transferee, without an express agreement with the insurance
2. Chapter 1
company. When the insurance policy lapses it would not be available to cover the liability of
3. Chapter 2
the purchaser of the vehicle.
4. Chapter 3
5. Chapter 4
6. Chapter 5
Liability in respect of damage to property
For damage to property of a third party under 1939 Act the limit of liability is Rs 6000
in all, irrespective of the class of the vehicle. Under 1988 Act the position as laid down by
section 147 (2) in regard to liability is as under:
(i) For death or personal injury to a third party, the liability of the insurer is the amount
of liability incurred, i.e. for the whole amount of liability.
(ii) For damage to property of a third party the liability of the insurer is limited to Rs.
6000 as was under the 1939 Act.

1. Content Index
Liability of Insurer beyond the limits mentioned in the Act
2. Chapter 1
3. Chapter 2
Section 147 lays down the limits of liability of the insurer. However there is no bar for
4. Chapter 3
the insurer undertaking a higher liability i.e. liability for a greater amount than that mentioned
5. Chapter 4
in the Act. Thus the insured and the insurer can contract and can provide for a higher
6. Chapter 5
liability.
Thus I have studied and analysed the third party liability insurance under the motor
Vehicles Act, 1988.Third party insurance protects the interest of a third party who becomes
the victim of accident or injury caused by the fault of the insured. So any liability arising on
the insured by the third party is mitigated by the insurance company. Third party insurance is
compulsory under the motor vehicles Act, 1988. As the third party insurance is mandatory so
it cannot be overridden be any clause in the insurance policy.
It is the duty of insurers to satisfy the judgments and awards against persons insured
in respect of third party risks. The insurance company is a „State‟ within the meaning of
article 12 of the Constitution. For this reason it cannot deny, discriminate or refuse third party

insurance cover to State run vehicles because their actions are guided by Article 14 of the
1. Content Index
Constitution.
2. Chapter 1
3. Chapter 2
The compulsory nature of third party insurance is justifiable as it makes the process
4. Chapter 3
more easy for the injured person to recover money from the insured. The defendant or
5. Chapter 4
wrongdoer cannot be exempted on the ground that he has become insolvent. If he owns a
6. Chapter 5
vehicle he bound to pay to the injured directly or through his insurance company.
CHAPTER 5
MOTOR INDUSTRIES COMPANY
Motor Industries Company is a subsidiary of Bosch Group and is engaged in the production
as well as export of auto-components since its inception in 1951. The production of fuel
injection instrument for automobiles run on diesel has also aided the company's prominence
in India.
Scope of Motor Industries Company
| CHAPTER 5 143
The net sales figure of Motor Industries Company in 2006 indicates its popularity in
1. Content Index
the Indian market. The company managed to sell goods worth Rs. 30,168 million in 2006,
2. Chapter 1
which can be considered an impressive figure. Motor Industries Company has lately entered
3. Chapter 2
into varied sectors such as: Automotive Technology Building Technology Consumer Goods
4. Chapter 3
Industrial Technology
5. Chapter 4
6. Chapter 5
Products of Motor Industries Company
Motor Industries Company is engaged in the manufacture and development of varied

products which meet the needs of most of the towns in India through its complex chain of
retail shops and dealers. Motor Industries Company has been accredited with ISO and TS
16949 Certification for its technological advanced production plants, involved in the
production of best quality goods. The list of commodities produced by Motor Industries
Company includes:
Production Units of Motor Industries Company
| MOTOR INDUSTRIES COMPANY 144

 Auto-Electricals
1. Content Index
 Security Systems
2. Chapter 1
 Hydraulics
3. Chapter 2
 Rail Injectors
4. Chapter 3
 Electric Power Tools
5. Chapter 4
 Blaupunkt Car Audio Systems
6. Chapter 5
 Industrial Equipment
 Packaging Machines
Motor Industries Company has separate units to deal with the varied aspects of
production. The production units at Bangalore, is known as the company's technical center
as it offers advanced technological solutions to the Indian automobile sector. This global
development centre provides guidance for the utilization of petrol injections equipments and
also makes various classes of pumps including multi-cylinder and mechanical distributor
pumps. The Bangalore unit undertakes testing and improvisations in the quality and
technical aspects of the products and works out plans with other production plants of Motor
Industries Company in India to maintain consistency in the quality of products. The company
has also set up research and development units to create designs through computers in

order to facilitate injector and metallurgical testing. They have established segments for
1. Content Index
calibration tests and other test cells to check the capacity for endurance, emission and
2. Chapter 1
performance of the engines. The application center is the recently developed segment of
3. Chapter 2
Motor Industries Company that scrutinizes instruments required for the safe emission of
4. Chapter 3
gases from automobiles. To facilitate such scrutiny, the plant has acquired various tools
5. Chapter 4
such as:
6. Chapter 5
 Alternator testing
 Spark plug testing
 Instrumentation lab
 Climatic testing
 Starter Motor Testing
 Vibration testing
Awards won by Motor Industries Company:
Motor Industries Company has been recognized and accredited with several awards
and certifications for the excellent quality of its products and latest technological solutions.

< Previous Page
The company grabbed the Automotive Technology Award for 2007 for the incorporation of
1. Content Index
ABS and ESP technologies. Price Waterhouse Coopers were responsible for the auditing
2. Chapter 1
which was organized by Next Gen Automotive in association with the news channel NDTV
3. Chapter 2
Profit. Motor Industries Company has bagged the Autocar Auto Awards this year for topping
4. Chapter 3
the other manufactures in the auto component sector and this award was given away by the
5. Chapter 4
television channel CNBC. The Dun & Brandstreet Award, better known as American Express
6. Chapter 5
Corporate Award was given to Motor Industries Company last year. In the same year, the
company was awarded "Star Performer" status at Chennai by the Engineering Export
Promotion Council. The year 2006 was crucial for Motor Industries Company as it also won
the Safety & Technology Award in 2006 for incorporating latest technologies in diesel
injection, especially for rail diesels.

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CHAPTER 2: MOTOR VEHICLES ACT 1988

 interstate national permits

CHAPTER 3: OFFENCES PUNISHABLE UNDER MOTOR VEHICLES ACT

CHAPTER 4: IMPORTANCE OF INSURANCE

CHAPTER 5: MOTOR INDUSTRIES COMPANY

1. On-Premise Licensing (traditional purchased license)

TMS usually "sits" between an ERP or legacy order processing and

1. Planification and Decision

TMS will allow following any physical or administrative operation regarding

sending of transport alerts (delay, accident, non-forecast stops…)

individuals from one place to another. In business, it is considered as an auxiliary to trade,

e. Helps in creation of employment: Transport provides employment opportunity to

f. Helps in labor mobility: Transport helps a lot in providing mobility to workers.

passengers. All these are known as various means of transport.

Land transport refers to activities of physical movement of goods and passengers on

Road transport has the following advantages.

not connected by other means of transport like hilly areas.

Advantages of Rail transport

(i) It is a convenient mode of transport for traveling long distances.

Limitations of Railway transport

Ropeway transport Man driven Ropes

- Thelas (push carts)

Different Means of water Transport

I. Inland water transport

Sea transport may be of the following two types.

a. Liners - A liner is a passenger or cargo vessel, which belongs to a regular

Advantages of water transport

Water Transport has the following advantages:

Limitations of water transport

Water transport has the following limitations.

Different Means Water Transport:

Inland transport Ocean transport

Advantages of Air transport

Limitations of air transport

It has the following limitations.

Different Means Air Transport

2. Definitions: In this Act, unless the context otherwise requires,--

(4) "Certificate of registration" means the certificate issued by a competent authority

(5) "Conductor", in relation to a stage carriage, means a person engaged in collecting

| MOTOR VEHICLES ACT 1988 26

Chapter III authorizing the person specified therein to act as a conductor;

| MOTOR VEHICLES ACT 1988 27

(11) "Educational institution bus" means an omnibus, which is owned by a college,

| MOTOR VEHICLES ACT 1988 28

| MOTOR VEHICLES ACT 1988 29

(20) "Licensing authority" means an authority empowered to issue licenses under

| MOTOR VEHICLES ACT 1988 30

| MOTOR VEHICLES ACT 1988 31

transmitted thereto from an external or internal source and includes a chassis to

(31) "Permit" means a permit issued by a State or Regional Transport Authority or an

| MOTOR VEHICLES ACT 1988 32

| MOTOR VEHICLES ACT 1988 33

(41) "State Government" in relation to a Union territory means the Administrator

| MOTOR VEHICLES ACT 1988 34

| MOTOR VEHICLES ACT 1988 35

(47) "Transport vehicle" means a public service vehicle, a goods carriage, an

| MOTOR VEHICLES ACT 1988 36

DRIVERS OF MOTOR VEHICLES CHAPTER II LICENSING OF DRIVERS OF

| MOTOR VEHICLES ACT 1988 37

| MOTOR VEHICLES ACT 1988 38

| MOTOR VEHICLES ACT 1988 39

| MOTOR VEHICLES ACT 1988 40