The paper proposes a novel instance segmentation method for traffic videos devised for deployment on real-time embedded devices. A novel neural network architecture is proposed using a multi-resolution feature extraction backbone and improved network designs for the object detection and instance segmentation branches. A novel post-processing method is introduced to ensure a reduced rate of false detection by evaluating the quality of the output masks. An improved network training procedure is proposed based on a novel label assignment algorithm. An ablation study on speed-vs.-performance trade-off further modifies the two branches and replaces the conventional ResNet-based performance-oriented backbone with a lightweight speed-oriented design. The proposed architectural variations achieve real-time performance when deployed on embedded devices. The experimental results demonstrate that the proposed instance segmentation method for traffic videos outperforms the you only look at coefficients algorithm, the state-of-the-art real-time instance segmentation method. The proposed architecture achieves qualitative results with 31.57 average precision on the COCO dataset, while its speed-oriented variations achieve speeds of up to 66.25 frames per second on the Jetson AGX Xavier module.