Sign In
For assistance with claim related queries in the CYCLONE affected regions of Tamil Nadu, Andhra Pradesh, and Kerala, please click here

Learn all about the Indian Motor Vehicle Act 1988

​​The Motor Vehicle Act, also known as the MV Act of 1988, governs nearly all modes of transportation on Indian roads. The Act offers guidelines for the registration of new motor vehicles, provisions for various traffic regulations, and information on driver and conductor licencing. The Act also discusses car insurance and scooter insurance, the liabilities of motorists and insurers in various events, and more. 

According to this Act, you cannot ride a vehicle without a valid driver's licence or if your vehicle is not covered by scooter insurance or car insurance

In 2019, the Government made several changes to the MV Act of 1988. You should be aware of the rules and regulations surrounding vehicle purchase, and scooter insurance or car insurance in India. But before that, let's discuss the provisions of the MV Act of 1988.  

List of offences mentioned under the Motor Vehicle Act, 1988 

Motor Vehicle Act, 1988 (Section) Offences
Section 17(i) RRR 177 If you are found driving in the wrong lane by entering one way.​​​​
Section 4 R/S 181 If your vehicle is being driven by a minor.​
Section 39 R/W 192 If you are caught driving without a valid registration certificate (RC).​
Section 5 R/W 180 If an unauthorised person drives your vehicle.​
Section 130 R/W 177
  • If you are caught driving without a valid licence.
  • If you are found driving without a valid road permit.
  • If your vehicle has not been tested for fitness after the prescribed age limit.
Section 129 R/W 177 If you are caught riding a two-wheeler without a helmet.​
Section 184 If you are caught rash driving.​
Section 138 (3) CMVR 177 If you are caught driving a four-wheeler without a seat belt properly fastened.​
Section 112-183  If you are caught doing dangerous things while driving.


What is the difference between the Motor Vehicle Act of 1988 and 2019? 

The amendment to the MV Act of 1988 increased the penalties. It means that the penalty for not having valid scooter insurance or car insurance is significantly higher now compared to 2018.


Offence Old fineNew fine
RacingRs 500

First offence:

  • Rs 5,000 or/and
  • Three months imprisonment

Second offence:

  • Rs 10,000 or/and
  • One year of imprisonment
Driving without DLRs 500Rs 5,000
Intoxicated drivingRs 2,000

First offence:

  • R​s 10,000 or/and
  • Six months of imprisonment 

Second offence:

  • Rs 15,000 or/and
  • Two years of imprisonment 
OverspeedingRs 400

Light vehicle:

  • Rs 2,000 

Medium/heavy vehicle:

  • Rs 2,000 - Rs 4,000
Riding without car insurance or scooter insurance Rs 1,000

First offence: 

  • Rs 2,000 or/and
  • Three months of imprisonment 

Second offence: 

  • Rs 4,000 or/and
  • Three months of imprisonment 
Violating road regulations Rs 100Rs 500 to Rs 1,000
Riding without a helmet (including a pillion)Rs 100
  • Rs 1000 or/and
  • Disqualification
Rash drivingRs 100 to Rs 300

First offence:

  • Rs 1,000 to Rs 5,000 or/and
  • 6-12 months of imprisonment  

Second offence: 

  • Rs 10,000 or/and
  • Two years of imprisonment 
Overloading (two-wheeler)Rs 100
  • Rs 2,000 or/and
  • Licence suspension
Driving oversized vehicle-Rs 5,000 and Rs 10,000
Using mobile while drivingRs 1,000Rs 5,000
Driving without fastening a seatbeltRs 100Rs 1,000


Why was the fine for violating traffic rules raised? 

In recent years, there have been numerous incidents where negligent driving has caused severe road mishaps that have resulted in the death of motorists or pedestrians. People often overlook the importance of wearing seat belts, avoiding intoxicated substances when driving, and not overloading the vehicle because of small fine amounts. They also disregard the significance of having car insurance or a scooter insurance policy.  

Thus, amendments to the MV Act of 1988 were made to reduce the number of road mishaps and encourage people to obey traffic laws. 

To conclude 

The MV Act exists to ensure the safety of both riders and pedestrians. It is critical to follow the guidelines outlined above. You must also ensure that your vehicle is covered by car insurance or scooter insurance so that you are financially protected in the event of a road accident.