In a landmark ruling, the Supreme Court on Wednesday gave relief to commercial vehicle drivers, saying that a person holding a light motor vehicle (LMV) driving license can also legally drive a transport vehicle with an unladen weight up to 7,500 kg. This decision could affect numerous insurance claims and aligns with the practical realities of commercial driving.

The Bench’s decision addresses insurance claims litigation

The five-judge bench, headed by Chief Justice DY Chandrachud and including Justices Hrishikesh Roy, PS Narasimha, Pankaj Mithal and Manoj Misra, ruled in favor of LMV license holders, affecting the way insurance companies deal with accident claims. In the past, insurers often rejected claims involving transport vehicles of certain weights if the drivers held only LMV licences, citing legal restrictions.

In the unanimous verdict, Justice Hrishikesh Roy noted, “There is no empirical evidence that LMV license holders are responsible for the increase in road accidents in the country.” He also pointed out that the grievances of LMV permit holders, who spend considerable time driving on the roads, cannot be dismissed on technical grounds.

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The legal issue and its wider implications

The main question asked was whether a person with an LMV license can drive a transport vehicle with an unladen weight of up to 7,500 kg. This issue has led to several disputes over insurance claim payments, with insurance companies claiming that only specific licenses authorize the driving of certain transport vehicles. The Supreme Court decision confirms that LMV license holders can indeed drive such vehicles, potentially changing the way car accident claims are handled by insurance companies.

Call for amendments to the Law on Motor Vehicles

The court asked the Center to expedite amendments to the Motor Vehicles (MV) Act, 1988. Attorney General R Venkataramani, representing the Centre, indicated that consultations on the amendments were “almost complete”. The Court emphasized the need for a prompt conclusion of these changes to provide clarity on license categories and their associated driving privileges.

Recognized pro-insured approach

The court acknowledged that lower courts and motor accident tribunals (MACTs) have generally adopted a “pro-insured” stance in insurance disputes, often directing insurance companies to honor claims despite objections to the types degree. With this Supreme Court decision, the rights of LMV license holders are further upheld, potentially ensuring that insurance claims involving lighter transport vehicles proceed more smoothly in the future.

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