In a significant ruling, the Supreme Court on Wednesday provided relief to commercial vehicle drivers by declaring that a person holding a driving licence for a light motor vehicle (LMV) can also legally drive a transport vehicle with an unladen weight of up to 7,500 kg. This decision could affect numerous insurance claims and aligns with the practical realities of commercial driving.
Bench’s Decision Addresses Insurance Claims Disputes
The five-judge Constitution bench, led by Chief Justice DY Chandrachud and including Justices Hrishikesh Roy, PS Narasimha, Pankaj Mithal, and Manoj Misra, ruled in favor of LMV licence holders, affecting how insurance companies handle accident claims. Previously, insurers often denied claims involving transport vehicles of certain weights if drivers only held LMV licences, citing legal restrictions.
In the unanimous verdict, Justice Hrishikesh Roy noted, “There is no empirical data that LMV driving licence holders are responsible for a rise in road accidents in the country.” He further emphasized that the grievances of LMV licence holders, who spend considerable time driving on the roads, could not be dismissed on technical grounds.
The Legal Question and Its Wider Implications
The primary question addressed was whether a person with an LMV licence could drive a transport vehicle up to 7,500 kg in unladen weight. This issue had led to multiple disputes over insurance claim payouts, with insurance companies arguing that only specific licences authorize driving certain transport vehicles. The Supreme Court’s decision confirms that LMV licence holders can indeed drive such vehicles, potentially shifting the way motor accident claims are handled by insurance companies.
Call for Amendments to the Motor Vehicles Act
The court urged the Centre to expedite amendments to the Motor Vehicles (MV) Act, 1988. Attorney General R Venkataramani, representing the Centre, indicated that consultations on amendments were “almost complete.” The bench underscored the need to conclude these amendments promptly to provide clarity on licence categories and their associated driving rights.
Pro-Insured Approach Recognized
The bench acknowledged that lower courts and Motor Accident Claims Tribunals (MACTs) have generally taken a “pro-insured” stance in insurance disputes, often directing insurance firms to honor claims despite objections over licence types. With this Supreme Court decision, LMV licence holders’ rights are further supported, potentially ensuring that insurance claims involving lighter transport vehicles proceed more smoothly in the future.
