On Wednesday(21st August),The Supreme Court reserved its verdict on the eligibility of LMV licence holders to drive transport vehicles under 7,500 kg. The decision could impact insurance claims in accident cases involving these vehicles.
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NEW DELHI: The Supreme Court of India reserved its verdict on Wednesday(21st August), regarding the eligibility of a person holding a Light Motor Vehicle (LMV) licence to drive transport vehicles with an unladen weight not exceeding 7,500 kg. This legal question has become the center of numerous disputes, particularly concerning the payment of insurance claims in accident cases involving transport vehicles driven by those possessing LMV licences.
The issue at hand has sparked considerable debate, especially among insurance companies. They argue that Motor Accident Claim Tribunals (MACTs) and various courts have consistently ruled in favor of the insured, compelling insurance firms to pay out claims even when the driver involved in the accident held only an LMV license, but was driving a transport vehicle. According to the insurance companies, these tribunals and courts have been “disregarding their objections” regarding the specific limitations of an LMV driving license.
“The courts have consistently favored the insured in decisions regarding insurance claim disputes.”
– the insurance firms have asserted, expressing their concern over the current trend in judicial decisions.
A five-judge Constitution bench, led by Chief Justice D Y Chandrachud, took up the matter for deliberation. The bench, which also includes Justices Hrishikesh Roy, P S Narasimha, Pankaj Mithal, and Manoj Misra, heard extensive arguments from various stakeholders, including Attorney General R Venkataramani, who represented the Centre.
During the hearing, the Attorney General informed the bench that consultations to amend the Motor Vehicles (MV) Act, 1988, are “almost complete.” However, he cautioned that the proposed amendments have not yet been presented in Parliament and are expected to be tabled during the upcoming winter session.
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“This can only be addressed in the upcoming winter session of Parliament now.”
– he added.
Despite the Centre’s submission that the amendment Bill was expected to be put before Parliament soon, the bench decided to proceed with the case, rather than delaying it further. This decision underscores the urgency and significance of the legal question at hand.
At the heart of the case is a specific legal question:
“Whether an individual with a Light Motor Vehicle (LMV) license is legally entitled to drive a transport vehicle within the LMV class, with an unladen weight not exceeding 7,500 kg.”
This question was initially referred to the larger bench on March 8, 2022, by a three-judge bench headed by Justice U U Lalit (since retired). The need for clarification arose following the Supreme Court’s 2017 judgment in the case of Mukund Dewangan versus Oriental Insurance Company Limited.
Background: The Mukund Dewangan Case
In the Mukund Dewangan case, a three-judge bench of the Supreme Court had ruled that transport vehicles with a gross weight not exceeding 7,500 kg are not excluded from the definition of an LMV. This interpretation meant that individuals holding an LMV license were legally permitted to drive certain types of transport vehicles.
Following this ruling, the Centre accepted the judgment and amended the relevant rules to bring them in line with the court’s interpretation. However, the controversy did not end there. Concerns were raised that some provisions of the Motor Vehicles Act were not adequately considered in the Mukund Dewangan judgment, prompting the need for a larger bench to revisit the issue.
On July 18 of the previous year, the Constitution bench began hearing a total of 76 petitions related to this legal question. The lead petition in this complex legal landscape was filed by M/s Bajaj Allianz General Insurance Company Limited, highlighting the significant financial implications for the insurance industry.
The Motor Vehicles Act establishes distinct regimes for granting driving licenses across various categories of vehicles. In referring the matter to the larger bench, the Supreme Court indicated that there were certain provisions of the law that were overlooked in the Mukund Dewangan judgment, and thus, the controversy in question needs to be revisited.
