In a significant decision on November 6, 2024, the Supreme Court ruled that holders of Light Motor Vehicle (LMV) licenses can now drive commercial vehicles weighing up to 7500 kg.
The court also stated that insurance companies cannot deny claims based on the type of license held by the driver.
Court’s Ruling and Social Impact
A bench of five judges, led by the Chief Justice, delivered the unanimous ruling.
Justice Hrishikesh Rai, reading the verdict, emphasized that this decision was not just a legal matter but also a social one.
He pointed out that understanding the societal impact of the law is important to ensure people do not face unnecessary difficulties in their livelihoods.
Insurance Companies’ Argument Rejected
The court rejected the argument made by insurance companies, which had claimed that accidents involving LMV license holders driving commercial vehicles were on the rise.
The Supreme Court noted that many people drive transport vehicles under 7500 kg to earn a living.
It also said that insurance companies failed to prove that accidents occurred due to LMV license holders driving these vehicles.
The court acknowledged that road safety is a major global concern, with over 1.7 lakh road accident fatalities in India last year.
However, it stated that road accidents are caused by many factors like not following traffic rules, seat belt and helmet violations, mobile phone use, and intoxication.
Guidelines for Licensing Authorities
The court also addressed the licensing authority, suggesting that it would not be appropriate to differentiate between private and commercial vehicles weighing less than 7500 kg.
Special licenses should only be required for vehicles over this weight.
The court further directed that the licensing authority must strictly follow rules, including conducting a driving test, when issuing driving licenses.
Background of the Issue
This issue was first raised in 2017 during the case of Mukund Dewangan vs Oriental Insurance Company Limited.
A three-judge bench had then ruled that transport vehicles weighing less than 7500 kg should be included under the definition of LMV.
Following this, insurance companies filed a petition, but the court’s latest ruling has upheld the earlier decision.
