Jan Vishwas Act 2026: Driving licenses, fines, and road rules set for a major overhaul in India

The Union government is restructuring India's regulatory framework with the Jan Vishwas (Amendment of Provisions) Act 2026. Initially introduced three years ago to foster a trust-based governance model, the legislation has now been expanded to make compliance easier for businesses and citizens alike. By decriminalising minor technical errors and procedural lapses, the Act replaces criminal 'fines' with civil 'penalties', reducing the burden on courts and eliminating unnecessary jail time for minor offences.

While the overall Jan Vishwas Act spans 79 laws and 784 provisions, the changes to the Motor Vehicles Act (MVA) will have the most direct impact on everyday citizens. Though the amendments were gazetted on 8 April 2026, the specific implementation dates may vary across states as the necessary administrative rules are drafted. Any legal conflicts must be resolved within two years.

Here is an in-depth breakdown of how the Jan Vishwas Act 2026 transforms the rules of the road for Indian motorists, transport operators, and road construction authorities.

Decoding the shift from 'fines' to 'penalties'
The defining aspect of the Jan Vishwas Act is the semantic and legal transition from criminal 'fines' to civil 'penalties'. Under the old regime, even minor technical slip-ups could land a motorist in court, risking a criminal record. The new law decriminalises these minor infractions. Offenses will now be resolved via rapid, administrative channels with clear, pre-determined financial penalties. Crucially, this does not mean the government is softening its stance on road safety. Dangerous driving, habitual offences, and serious safety violations will continue to face strict criminal prosecution.

The return of the driving license grace period
In a massive relief for regular drivers, the 30-day grace period for expired driving licenses—which was scrapped in the 2019 MVA amendment—has been reinstated. Drivers can now legally operate their vehicles and renew their licenses up to 30 days after expiry without facing penalties. Furthermore, the new rules recommend that early renewals should remain valid from the original expiry date, ensuring motorists do not lose out on any validity period by being proactive.

Hassle-free vehicle registration
The new law clears up lingering ambiguities regarding vehicle registrations. Vehicle owners are now explicitly permitted to register their vehicles anywhere within their home state, cutting down unnecessary bureaucratic red tape.

Stricter laws for uninsured driving and delayed insurance transfers
Under the updated regulations, the deadline to transfer vehicle insurance after purchasing a pre-owned car has been extended from 14 days to 30 days. However, driving without valid third-party insurance will now attract steep penalties scaled directly to the insurance premium. For a first-time offence, violators must pay either three times the insurance premium or ₹5,000, whichever is higher. Subsequent offences will attract a penalty of five times the premium or ₹10,000, whichever is higher. Under the previous regime, the fines were capped at ₹2,000 for the first offence and ₹4,000 for repeat offences.

Decriminalising petty offences and replacing prison time
For petty infractions (Section 177), driving regulation violations (Section 177-A), and sounding horns unnecessarily in silence zones (Sections 190-2 and 194-F), first-time offenders will receive only a warning. Subsequent violations, however, will be penalised. Crucially, jail terms have been entirely removed for several non-violent infractions, including travelling without a ticket, overloading, operating unregistered or unpermitted vehicles, driving while physically unfit, and driving without insurance. Even blocking emergency vehicles (Section 194-E) and violating safety or pollution regulations (Section 190-2) will no longer lead to imprisonment for first-time offenders. Instead, civil penalties will apply, though repeat offenders can still face jail time.

Swift settlement for motor accident claims
The timeline to file a claim after a motor accident, originally fixed at six months, can now be extended up to one year if a valid reason is provided. More importantly, Motor Accident Claims Tribunals (MACT) are now mandated to resolve cases within one year of registration. Additionally, any separate ex-gratia relief received by a victim will no longer be deducted from their final MACT compensation payout.

Major changes to hit-and-run, vehicle tampering, and bad road design
In hit-and-run cases, the potential jail term for the accused has been removed in favour of a strict financial penalty. The minimum penalty has been hiked from ₹25,000 to ₹1,00,000. Meanwhile, vehicle tampering and trespassing rules have been tightened. Unauthorised entry into someone else's vehicle now carries a ₹1,000 penalty, while sabotaging or damaging a vehicle's brake system will attract a steep ₹10,000 penalty. Additionally, road construction agencies and contractors are under stricter scrutiny. If poor road design, substandard construction, or negligent maintenance leads to a fatal or disabling accident, the penalty for responsible authorities or contractors has been raised from a mere ₹1 lakh to up to ₹50 lakh.

State compounding powers and the future of traffic policing
By shifting from fines to administrative penalties, the power of states to arbitrarily settle cases under Section 200 of the MVA has been curbed. The Union government will now oversee the rules for settling these administrative penalties, which means states can no longer offer discretionary discounts (such as the standard 50 per cent reduction on helmet or seatbelt fines). Looking ahead, this penalty-based administrative system is expected to pave the way for a points-based licensing system, where repeated minor offenses directly affect a motorist's right to drive.

Disclaimer: The insights in this article were compiled with inputs from Dilip Kumar KG, Deputy Director, SCMS Institute of Road Safety and Transportation (SiRST), Ernakulam.