Supreme Court: LMV License Valid for Commercial Vehicles Under 7500 Kg

Key Highlights

• Supreme Court clarified that the LMV license is valid for commercial vehicles up to 7500 kg.

• The case involved a Tata 407 truck driven rashly, resulting in a fatal accident.

• The insurance company denied liability, saying no commercial license was held.

• ₹19.53 lakh compensation was awarded by the Tribunal, but the insurer was not held liable.

• Supreme Court applied the “pay and recover” principle, making the insurer pay first.

In an important decision, the Supreme Court has ruled that a Light Motor Vehicle (LMV) license is valid for driving commercial vehicles with a gross weight of up to 7500 kg. This decision brings clarity to a long-standing confusion regarding driving license categories and insurance liability.

What the Supreme Court Said

The ruling was delivered by a division bench of Justice Sanjay Karol and Justice Joymalya Bagchi. It came during an appeal involving a road accident case where the driver held only an LMV license. The vehicle involved, a Tata 407, was used commercially and weighed below 7500 kg. The court concluded that the driver was not operating outside the scope of his license.

Case Background

On November 27, 2013, a man returning from a local market was travelling in a Tata 407 truck. The vehicle, driven by Respondent No. 3, met with an accident that caused the passenger's death. The victim’s family filed a compensation claim of ₹49.26 lakh under Section 166 of the Motor Vehicles Act, 1988. The claim was based on the deceased's income from his small cloth-selling business.

The Motor Accident Claims Tribunal (MACT) awarded ₹19.53 lakh with 6% annual interest. However, the tribunal held that the insurance company was not liable because:

• The driver only had an LMV license.

• The vehicle had no valid permit or fitness certificate.

Supreme Court’s Detailed Ruling

The Supreme Court overruled both the Tribunal and the High Court. It referred to earlier judgments such as:

• Mukund Dewangan vs. Oriental Insurance Co. Ltd.

• Bajaj Allianz General Insurance Co. Ltd. vs. Rambha Devi

These cases had already settled that drivers holding LMV licenses under Section 10(2)(d) of the Motor Vehicles Act can legally drive commercial vehicles not exceeding 7500 kg in gross vehicle weight.

The Court explained,

“...although the offending vehicle is a commercial one and the driver possessed a license to only drive an LMV, considering the gross weight is not in excess of 7500 Kg, the license was valid.”

The Court also applied the "pay and recover" principle. This means the insurance company must first pay the compensation to the victim’s family and can then recover the amount from the vehicle’s owner or driver.

Legal Teams in the Case

• Appellants (Claimants): Advocates Sanjay Kumar Dubey, Devendra Kumar Shukla, Jitendra Kumar Tripathi, Shuchi Singh, Anjali Dwivedi, Krishna Kant Dubey, Akhand Prakash Gupta, Vivek Kumar Pandey.

• Respondent (Insurance Company): Advocate-on-Record T. Mahipal and Advocate Rohit Kumar Sinha.

Importance of This Verdict

This ruling settles confusion faced by drivers and insurance companies regarding LMV licenses. Many drivers operating vehicles like pickup trucks and small commercial vans now have legal confirmation that their LMV licenses are valid for vehicles under 7500 kg, even if used for transport purposes.

The decision also ensures fair treatment of accident victims, as insurance companies must fulfill their responsibility first and then recover the costs through legal procedures.

CMV360 Says

The Supreme Court directed the insurer to pay ₹19.53 lakh compensation, confirming that LMV licenses cover commercial vehicles under 7500 kg. Insurers cannot deny claims due to missing commercial endorsements. The “pay and recover” principle ensures justice. This ruling offers vital legal clarity to drivers and strengthens protection for accident victims across India.