An LMV licence covers an LMV transport vehicle up to 7,500 kg without a separate transport endorsement.

The claimant sustained grievous injuries when a vehicle driven by respondent No. 1 struck him near CBT Circle, Belagavi, on 16 December 2012.

He sought compensation before the MACT.

The Tribunal partly allowed the claim, attributed 50% contributory negligence to the claimant, and exonerated the insurer because the driver allegedly lacked a valid licence for the transport vehicle.

The claimant appealed, challenging the contributory-negligence finding, the compensation assessment, and the insurer’s exoneration.

1. Whether the Tribunal was justified in attributing 50% contributory negligence to the claimant?

2. Whether the claimant was entitled to enhanced compensation?

3. Whether the insurer was liable to indemnify the owner in light of Mukund Dewangan and the subsequent Constitution Bench decision identified by the Court as Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi ?

The appeal was brought under Section 173(1) of the Motor Vehicles Act.

On contributory negligence, the Court assessed the evidence concerning the accident and the parties’ respective conduct.

On driving-licence liability, it relied on Mukund Dewangan v. Oriental Insurance Co. Ltd. , (2017) 14 SCC 663, and the Constitution Bench decision it identified as Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi , holding that an LMV licence may suffice for an LMV transport vehicle within the prescribed weight limit, without a separate transport endorsement, subject to statutory and policy requirements.

The complaint and scene sketch showed that the claimant was crossing the divider, supporting some contributory negligence; however, the driver had been charge-sheeted and the record disclosed no basis for fixing negligence at 50%. The Court therefore reduced the claimant’s share to 25%.

It found no sufficient material to enhance the compensation and maintained the Tribunal’s assessment.

As to insurance, the Court applied the LMV-licence principle conditionally: if the vehicle fell within the LMV category and weight limit, and the other policy requirements were met, the insurer could not avoid liability solely for want of a separate transport endorsement.

The claimant’s contributory negligence was fixed at 25%, with 75% attributed to the driver; the compensation amount was otherwise maintained.

The insurer’s liability was made subject to verification of the vehicle’s category and weight, the driving licence, and the applicable policy requirements.

The award was to carry 6% annual interest, subject to the stated exclusion for claimant-attributable delay, and the insurer was directed to deposit the amount payable within eight weeks.