Supreme Court Rules: LMV License Holders Can Drive Light Transport Vehicles, Shocking Insurance Companies

The Supreme Court of India just delivered a landmark judgment wherein the court held that the drivers of Light Motor Vehicle (LMV) license holder can be permitted to drive transport vehicles up to 7500 kg. The judgment was pronounced by the five-judge Constitution Bench, led by Chief Justice DY Chandrachud. It has tremendous implications not only in insurance claims but also in the interpretation of the Motor Vehicle (MV) Act, 1988.

Key Take-Aways from the Ruling
The legal question under this judgment was whether a person holding an LMV license could drive a transport vehicle weighing not more than 7,500 kg. This issue had become an area of controversy in most insurance disputes, especially in those cases involving accidents where the person driving was holding an LMV license but was behind the wheels of a transport vehicle.

Until now, insurance companies have refused to honor such claims stating that only drivers with special transport vehicle license should be permitted to drive vehicles of a weight more than 3,500 kg. With the ruling of the Court, LMV license holders can now drive up to 7,500 kg without fear of denial of claims.

Effect on Insurance Companies
This decision has taken a great blow to the insurance companies, especially like Bajaj Allianz, which had raised objections for claims having LMV drivers driving transport vehicles. Insurance companies argued courts were ignoring their objections that led to compelled payouts over accident claims.

The Supreme Court has held that insurance companies cannot reject the claims on the ground that holders of LMV license are not permitted to drive transport vehicles up to 7,500 kg. The judgment is likely to make the accident claims process even more simple for drivers having LMV licenses in future.

Amendments in the Motor Vehicle Act
The Government of India said it would present amendments to the Motor Vehicle Act in the Winter Session of Parliament following this verdict. The amendments will mirror the interpretation given by the Court and would also see to it that there was uniformity in the law regarding the eligibility of drivers and the weight categories of vehicles.

The judgment is based on the case of 2017 Mukund Devangan vs. Oriental Insurance. In this case, the Court was clear that LMV licenses should also be available for vehicles with a weight below 7,500 kg. It also aims at bringing the legal provisions of the MV Act in line with the changing requirements of the drivers and the insurance companies.