An LMV licence authorises driving transport vehicles under 7,500 kg without additional endorsement.

On 22 April 2006, Sarfaraz Sikandar Malvi was travelling as a pillion rider on motorcycle No. GJ-6-AQ-6176 when it was allegedly hit by tempo No. GJ-6-Z-5642, driven rashly and negligently while travelling from Dabhoi to Vaghodia.

He sustained grievous injuries and subsequently died. The legal representatives instituted Motor Accident Claim Petition No. 1201 of 2006 before the Motor Accident Claims Tribunal, Vadodara.

The Tribunal awarded compensation of ₹6,41,200 with interest at 9% per annum from the date of filing until realization.

IFFCO Tokio General Insurance Co. Ltd. appealed, principally disputing its liability to satisfy the award on the ground that the tempo driver possessed only an LMV licence and lacked a specific transport-vehicle endorsement.

1. Whether the insurer could avoid liability on the ground that the tempo driver held an LMV driving licence without a separate endorsement authorising him to drive a transport vehicle?

2. Whether a driver holding an LMV licence may drive a transport vehicle having a gross vehicle weight below 7,500 kg without an additional transport-vehicle authorisation?

The Court applied Sections 2(21), 3(1), and 10(2)(d)–(e) of the Motor Vehicles Act, 1988, as interpreted in Mukund Dewangan v. Oriental Insurance Co. Ltd., (2017) 14 SCC 663, holding that an LMV licence is sufficient to drive a transport vehicle whose gross vehicle weight is below 7,500 kg, without a separate transport-vehicle endorsement.

This principle was affirmed by the Constitution Bench in Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Ors., (2025) 3 SCC 95, which held that LMV and transport vehicles are not wholly distinct licensing classes and that the additional transport-vehicle eligibility requirements generally apply to vehicles exceeding 7,500 kg, subject to special categories such as hazardous-goods vehicles.

The vehicle’s Registration Certificate showed a gross vehicle weight of 1,050 kg and an unladen weight of 415 kg, placing it well below the 7,500-kg threshold.

The driver’s licence authorised him to drive an LMV.

Applying Mukund Dewangan, as affirmed and explained in Rambha Devi, the Court held that the absence of a separate transport-vehicle endorsement did not constitute a breach sufficient to exonerate the insurer.

Since the insurer’s sole challenge concerned its liability to satisfy the award, and the factual requirements for the LMV rule were established, the appeal lacked merit.

The First Appeal was dismissed, thereby affirming the Tribunal’s award of ₹6,41,200 with 9% annual interest.

The Tribunal was directed to disburse the compensation to the claimants after due verification and deduction of any deficit court fees.

Any statutory amount deposited before the High Court was directed to be transmitted to the Tribunal; there was no order as to costs.