All India Association of Industries welcomes reconsideration of Hit-and-Run law under Bharatiya Nyaya Sanhita

All India Association of Industries (AIAI) welcomes the decision of the Central Government to reconsider the proposed Hit and Run law under Bharatiya Nyaya Sanhita and its provisions to be kept in abeyance till further orders as the proposed law may award imprisonment of upto 10 years along with fine of Rs. 7 lakhs if the driver escapes or fails to report the incident immediately says Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, MVIRDC, World Trade Centre Mumbai.

Dr Kalantri further said that "The government may reconsider this fine and imprisonment provision as it may result in unnecessary harassment of innocent cargo drivers, who may have been involved in an accident because of situation beyond their control. Any innocent driver may try to escape to safeguard his life from the violent mob on the spot of the accident. But this does not mean that the driver has committed the accident willfully."

Dr Kalantri further added that there are existing laws to penalize rash driving or drunk driving whose provisions can be widened to address the menace of rash driving, instead of enacting a fresh law, which will increase the compliance burden. Dr. Kalantri believes that the government should encourage the road transport sector to set up a Protection and Indemnity (P&I) club to insure against loss of assets and lives from road accidents. Such a club may be modelled on the lines of P&l club of the marine insurance companies to indemnify the losses to ship owners and seafarers. Dr Kalantri offered his expertise and services in an advisory role to the road transportation sector for setting up such a club.

AIAI feels that the objective of any government should be to regulate the economy and not cause undue harassment by introducing draconian legal provisions that are open to misuse. Passing harsh legislations militate against the government's goal of rationalizing laws, simplifying compliance burden and deregulating the economy. Concludes Dr Kalantri, "Government may consult the stakeholders in the industry before introducing such stringent legislations keeping the motto of Ease of Doing Business intact."

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