Today, On 6th November, The Supreme Court of India is set to rule on whether a Light Motor Vehicle (LMV) license permits drivers to operate small transport vehicles weighing up to 7,500 kg. This decision aims to clarify a legal ambiguity that has significant implications for insurance claims in accidents involving such vehicles. The case, which has drawn arguments from both insurance companies and the Attorney General, could impact numerous drivers and insurers across the country.

New Delhi: The Supreme Court is set to deliver its verdict today regarding whether an individual with a driving license for a light motor vehicle (LMV) permitted to operate a transport vehicle with an unladen weight of up to 7,500 kg.
The five-judge Constitution bench, led by Chief Justice D.Y. Chandrachud, will announce the ruling. This legal issue sparked numerous disputes over insurance claims in accident cases involving transport vehicles driven by individuals with LMV licenses.
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Insurance companies have claimed that motor accident claim tribunals (MACTs) and courts have been issuing orders for them to pay claims, ignoring their objections related to the validity of LMV licenses for driving transport vehicles.
According to the insurance firms, the courts have been favouring the insured in these disputes.
The bench, which includes Justices Hrishikesh Roy, P.S. Narasimha, Pankaj Mithal, and Manoj Misra, reserved its verdict on August 21 after Attorney General R. Venkataramani, representing the Centre, stated that consultations for amending the “Motor Vehicles (MV) Act of 1988 are almost complete.”
He noted that the proposed amendments have yet to be presented in Parliament, which is expected to occur in the upcoming winter session. The bench had previously postponed the hearing, taking into account the Centre’s indication that the Bill to amend the MV Act would soon be brought before Parliament, and ultimately decided to continue with the case.
The Supreme Court is examining “whether a person holding a driving licence in respect of a light motor vehicle (LMV) could, on the strength of that licence, be entitled to drive a transport vehicle of light motor vehicle class having unladen weight not exceeding 7,500 kg.”
This legal question referred to a larger bench on March 8, 2022, by a three-judge bench led by Justice U.U. Lalit (now retired), and arises from the Court’s 2017 decision in Mukund Dewangan vs. Oriental Insurance Company Limited.
In that case, the Court ruled that transport vehicles with a gross weight not exceeding 7,500 kg are included in the LMV category. The Center accepted this judgment and amended rules accordingly.
However, last year, a Constitution Bench began hearing a series of 76 petitions led by Bajaj Allianz General Insurance Company Limited seeking clarity on whether aspects of the Motor Vehicles Act, overlooked in the Dewangan ruling, require revisiting.