The Supreme Court on November 6, 2024, ruled that individuals holding a light motor vehicle (LMV) driving licence are authorised to drive transport vehicles with an unladen weight of up to 7,500 kg. This ruling provides relief to commercial vehicle drivers and challenges insurance companies that have been rejecting claims based on the weight of the vehicle and the driver’s credentials.
Ruling Impact on Insurance Companies
The judgement by a five-judge bench, led by Chief Justice D.Y. Chandrachud, addressed a legal issue that had caused disputes regarding insurance claims for accidents involving transport vehicles. Insurance companies had previously denied claims when the driver held only an LMV licence, arguing that they were not legally allowed to drive heavier vehicles.
No Data Linking LMV License Holders to Higher Accident Rates
Justice Hrishikesh Roy, who wrote the unanimous verdict, noted that there was no empirical data to support the claim that LMV licence holders were more prone to causing road accidents. He emphasised that these drivers, who spend the most time behind the wheel, should not be penalised on technical grounds for their licensing status.
Legal Uncertainty and Pending Law Amendments
The court’s verdict comes after a long legal battle. The Centre had indicated that amendments to the Motor Vehicles Act, 1988, were nearly complete, which could address such issues more comprehensively. The Court urged the Centre to finalise the amendments without delay.
This decision also provides clarity on insurance claim disputes, where insurance firms had often resisted paying claims, arguing that the drivers were not authorised under their licences. The Court’s pro-insured stance further strengthens the rights of drivers holding LMV licences.
