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M/s Bajaj Allianz General Insurance Co. Ltd. vs Rambha Devi & Ors.

Not available · 2024 INSC 840Decided 6 Nov 2024
Not available
Chief Justice Dr. D.Y. Chandrachud · Justice Hrishikesh Roy · Justice Pamidighantam Sri Narasimha · Justice Pankaj Mithal · Justice Manoj Misra

Background

This case arose from insurance companies repeatedly resisting motor accident compensation claims on the ground that the driver held only a Light Motor Vehicle (LMV) licence but was driving a "Transport Vehicle" (e.g., a goods carriage or passenger vehicle used commercially) without the additional authorisation supposedly required under the Motor Vehicles Act. A three-judge bench had earlier settled this in favour of drivers in Mukund Dewangan v. Oriental Insurance Co. Ltd. (2017), but a later three-judge bench doubted that ruling, believing certain provisions of the Motor Vehicles Act and Rules were not considered, and referred the correctness of Mukund Dewangan to a Constitution Bench. Numerous connected appeals and special leave petitions raising the identical question were tagged together.

Decision Breakdown

The five-judge bench upheld the outcome in Mukund Dewangan, holding that a person holding an LMV licence (for vehicles under 7,500 kg gross weight) can lawfully drive a "Transport Vehicle" of that same weight class without needing a separate transport-vehicle endorsement: the categories of LMV and Transport Vehicle overlap rather than being mutually exclusive under Sections 2(21), 3 and 10 of the Motor Vehicles Act. The Court held that the additional eligibility/licensing requirements in the Act and Rules apply only to heavier vehicles (medium/heavy goods or passenger vehicles exceeding 7,500 kg) and to specific categories like e-carts, e-rickshaws and hazardous-goods carriers. It found no empirical evidence that LMV licence-holders driving transport vehicles pose a significant road-safety risk, and clarified that while Mukund Dewangan's ultimate conclusion was correct, it needed restating with fuller reasoning; the decision was held not to be per incuriam.

Lesson Learnt

If you hold a valid Light Motor Vehicle driving licence for a vehicle under 7,500 kg, you can legally drive a commercial/transport vehicle of that same weight class without a separate "transport vehicle" licence: insurers cannot deny motor accident claims solely on this ground, which protects both drivers' livelihoods and accident victims' right to compensation.

Official source (sci.gov.in)View Judgment (PDF)

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