The Motor Vehicles(Amendment) Bill 2016, introduced in the Lok Sabha seeks to bring about comprehensive changes in the present Motor Vehicles Act. The salient features of the Bill are as follows:- Limits on insurer’s liability : The proposed amendment seeks to put a cap on the liability to be borne by insurance companies in respect of third party claims to an extent of Rs.10 lakh in respect of death and Rs. 5 lakhs in respect of bodily injury arising out of motor vehicle accident. This means that the liability fixed on the insurer can be even lesser than Rs.10 lakhs and Rs.5 lakhs in case of death or bodily injury, as the case may be. The consequence of this section would be that in compensation claims, the victims will not be able to realize more than Rs.10 lakhs in case of death, and Rs.5 lakhs in case of bodily injury from the insurer under third party claim, and will have to realize the excess amount from the owner or driver.Enabling insurer to seek exoneration from liability for non-receipt of premium : The Bill seeks to make non-receipt of premium one of the specified conditions, which would enable the insurer to seek exoneration from the liability.Hit and Run Scheme : The compensation payable for victims in ‘hit and run’ out of the scheme fund under Section 161 has been enhanced to Rs. 2 lakhs in case of death, and Rs. 50,000/- in case of bodily injury, from Rs. 25,000/- and Rs. 12,500/- respectively.Motor Vehicle Accident Fund : The Bill seeks to introduce a Motor Vehicle Accident Fund under Section 164B, which is to be augmented by a special tax or cess. The Fund is to be utilized for giving immediate relief to victims of motor accidents, and also hit and run cases. The compensation paid out of the fund shall be deductible from the compensation which the victim may get in future from the Tribunal.Stringent Penalties for Road Traffic Violations : The Bill seeks to enhance the penalties for road traffic violations Proposed Amendments in Various Penalties under Motor Vehicle Amendment Bill – 2016. What is noteworthy is the provision for imposition of penalty for unauthorized use of vehicles by juveniles, whereby the guardian and owner is made liable for penal action.Protection of Good Samaritans : The Act defines “Good Samaritan” as a person, who in good faith, voluntarily and without expectation of any reward or compensation renders emergency medical or non-medical care or assistance at the scene of an accident to the victim or transporting such victim to the hospital. The Act makes provision for protection of Good Samaritans from unnecessary trouble or harassment from civil or criminal proceedings. This provision is incorporated following the directions of the Supreme Court in Save Live Foundation vs Union of India AIR 2016 SC 1617.Community Service as Punishment : For causing motor accidents, punishment in the form of ‘Community Service’ can be imposed. The Act defines “Community Service” as unpaid work which a person is required to perform as a punishment for an offence committed under this Act. It seems a cue has been taken from the judgment of the Supreme Court in BMW case (State vs. Sanjeev Nanda (2012) 8 SCC 450), wherein community service of two years was imposed as an alternate punishment.Bill is still pending with Parliament.Act: The Motor Transport Workers Act, 1961: An Act to provide for the welfare of motor transport workers and to regulate the conditions of their work