New Delhi: In a landmark decision on Wednesday, the Supreme Court of India clarified that drivers holding a light motor vehicle (LMV) license are legally permitted to operate transport vehicles weighing up to 7,500 kg. The ruling by a five-judge Constitution Bench, led by Chief Justice DY Chandrachud, upholds the rights of LMV drivers and marks a significant setback for insurance companies, which had attempted to sidestep liability by arguing that a separate license was required for such vehicles.
The decision came after extensive hearings, during which the bench considered arguments about road safety and the livelihood concerns of LMV drivers. The debate began in March 2022, when a three-judge bench referred the issue to the Constitution Bench for review. The crux of the matter was rooted in the Supreme Court’s 2017 ruling in the Mukund Dewangan vs Oriental Insurance Company Limited case, which interpreted provisions in the Motor Vehicles Act, 1988. In that case, the court ruled that vehicles with a gross weight below 7,500 kg fell under the LMV category, allowing LMV license holders to operate them without additional licensing.
Insurance companies, however, argued that this interpretation was flawed and sought to overturn it in the recent Bajaj Allianz General Insurance vs Rambha Devi case. Insurers contended that allowing LMV license holders to drive transport vehicles undermines regulatory and safety standards. They asserted that a separate license under Section 10(2)(e) of the Motor Vehicles Act should be mandated for heavier vehicles, especially those used in commercial transportation.
The Constitution Bench dismissed these claims, emphasizing that a driver with an LMV license under Section 10(2)(d) is legally eligible to operate a transport vehicle up to 7,500 kg. The bench highlighted that this ruling directly affects the livelihood of thousands of drivers, who rely on LMV licenses to work in the transport sector. Notably, the court considered not only technical regulatory concerns but also the socio-economic impact on drivers, many of whom depend on this license classification for their livelihood.
Justice Chandrachud reiterated the court’s commitment to balancing safety with economic necessity, recognizing the crucial role of LMV drivers in the logistics and transport industry. By reaffirming the 2017 decision, the court has provided clarity and stability for both drivers and employers in this sector, while insurers are now obligated to honor policies without additional restrictions based on the type of license.
Legal Context and Implications for Insurance Claims
The Mukund Dewangan decision has now been cemented as precedent, with the Supreme Court emphasizing that an LMV license is sufficient to operate transport vehicles under 7,500 kg without requiring a separate endorsement. For insurance companies, this judgment means they cannot deny claims based on licensing technicalities related to LMVs and transport vehicles.
The ruling brings much-needed clarity to a matter that has stirred confusion within the transport industry for years. With this clear directive, thousands of drivers holding LMV licenses can confidently continue their work without facing legal ambiguities or threats to their employment.
In light of this decision, insurers may now need to recalibrate their policies to align with the court’s stance, as they can no longer avoid payouts by challenging the driver’s license category. For the transport sector, this ruling ensures regulatory certainty and supports job security for LMV drivers across the country.
