In a landmark judgment for commercial vehicle operators, the Supreme Court of India on Wednesday said that holders of a light vehicle (LMV) driving license are allowed to drive transport vehicles with an unladen weight not exceeding 7,500 kg.

The judgment, delivered by a five-judge constitution bench headed by Chief Justice DY Chandrachud, is a challenge to insurance companies who have earlier rejected claims for accidents involving transport vehicles driven by persons without proper licence.

Justice Hrishikesh Roy, who authored the unanimous verdict, pointed to the lack of empirical evidence linking LMV license holders to an increase in road accidents. He stated: “The grievances of LMV license holders, who spend a lot of time on the road, cannot be dismissed on technical grounds.”

The bench, which included Justices PS Narasimha, Pankaj Mithal and Manoj Misra, reserved its decision on this contentious legal matter on August 21. During the proceedings, Attorney General R Venkataramani informed the court that consultations to amend the Motor Vehicles (MV) Act, 1988 are “almost complete”. The Supreme Court asked the Center to expedite the amendment process.

The basic legal question addressed by the bench revolved around whether LMV license holders could legally drive transport vehicles under the specified weight limit. This issue has given rise to numerous disputes regarding insurance claims in accident cases involving transport vehicles operated by LMV license holders.

Insurance companies have expressed concern that Motor Accident Claims Tribunals (MACTs) and courts have issued orders ignoring their objections to the validity of LMV driving licenses in such cases. They argue that the judiciary has consistently taken a pro-insured stance when resolving insurance claims disputes.