New Delhi: In a landmark ruling on Wednesday, the Supreme Court clarified that individuals with a Light Motor Vehicle (LMV) driving licence are eligible to drive transport vehicles weighing up to 7,500 kilograms. This decision is expected to resolve long-standing legal disputes, particularly around insurance claims, where drivers with LMV licences were previously denied coverage for accidents involving heavier vehicles.

A five-judge Constitution bench led by Chief Justice D.Y. Chandrachud delivered the unanimous verdict, offering much-needed clarity on driving licence regulations for commercial drivers. “A driver holding a licence for light motor vehicle… for vehicles with gross vehicle weight under 7,500 kg is permitted to operate a transport vehicle without needing additional authorisation… of the Motor Vehicle Act.

"LMVs and the transport vehicles are not entirely separate classes, and overlap exists between the two,” the bench held, adding the statute should remain practical and workable.

The ruling is seen as a massive boost for drivers who operate transport vehicles under 7,500 kg in weight. It is expected to address issues related to livelihood for these drivers, many of whom rely on their LMV licence to drive legally on the roads.

Justice Hrishikesh Roy, who pronounced the judgement, emphasised that the new rules would not apply to vehicles transporting hazardous goods, where special eligibility criteria still hold. “Road safety is a serious public issue globally. It is crucial to mention that in India, over 1.7 lakh persons were killed in road accidents… and the assumption that they stem from drivers operating light transport vehicles driven by LMV licence holders are unsubstantiated,” the bench said.

The bench said factors contributing to road accidents include rash driving, speeding, road design and the failure to adhere to traffic laws. Other significant contributors are the use of mobile phones while driving and non-compliance with regulations like seat belts and wearing helmets, it added.

“We are able to reach such a conclusion as none of the parties in this case has produced any empirical data to demonstrate that LMV driving licence holders driving a transport vehicle is a significant cause for road accidents in India,” it said.

“An authoritative pronouncement by this court would prevent insurance company from taking a technical plea to defeat a legitimate claim for compensation involving an insured vehicle going below 7,500 kg, driven by a person holding a driving licence for LMVs in an era where autonomous or driverless vehicles are no longer tales of science fiction and app-based passenger platforms are a modern reality, the licensing regime cannot remain static,” it said.

The amendments that have been carried out by the Indian legislature may not have dealt with all the possible concerns, it said.

“As we are informed by the attorney general that the legislative exercise is underway, we hope that a comprehensive amendment to address the statutory lacunas will be made with necessary corrective measures,” it said. "Our present interpretation on how the licensing regime is to operate for drivers under the statutory scheme is unlikely to compromise the road safety concerns," the court said.

Impact on insurance disputes

One of the major impacts of the ruling is its effect on insurance claims. Previously, insurance companies often rejected claims for accidents involving transport vehicles driven by individuals with LMV licence. The court’s verdict, based on the 2017 Mukund Dewangan case, now provides clarity, making it harder for insurers to deny claims on the grounds of the driver’s licence type.

The issue has been a contentious one, with insurance companies challenging decisions from motor accident claim tribunals (MACTs) and courts, which had previously ruled in favour of the drivers. This latest ruling ensures that insurance companies will be required to settle claims involving LMV-licensed drivers operating vehicles weighing under 7,500 kg.

The case has its roots in a 2017 Supreme Court verdict in the Mukund Dewangan case, which ruled that LMV licence holders could drive transport vehicles up to 7,500 kg. The court’s interpretation had led to disputes, especially regarding insurance claims. The government had amended the rules to align with this interpretation, but the matter remained unresolved in some cases.

Ongoing legal adjustments and clarifications

The court’s judgement comes after extensive consultations about potential changes to the Motor Vehicles Act, 1988. The legal question had been referred to the larger bench after a three-judge bench raised concerns about unresolved issues in the earlier ruling. With this verdict, the Supreme Court hopes to eliminate further confusion and streamline regulations for drivers and insurers alike.

While the judgement brings clarity to LMV licensing, it also highlights some of the broader challenges in the Indian road safety and insurance landscape. The bench noted that road accidents are influenced by various factors, including speeding, reckless driving, and non-compliance with traffic rules, such as wearing seat belts or helmets.

Agency