Holding LMV license validates driving a transport vehicle under 7500 kg without specific endorsement.

The Insurance Company appealed against the judgment of the Motor Accident Claims Tribunal, Vadodara (MACP No. 1171 of 2007) dated 05.08.2016

The deceased, Sakirbhai Mansuri, a 41-year-old mason, died on 22.05.2007 following a collision between his motorcycle and a three-wheel tempo insured by the appellant

The Tribunal awarded Rs. 8,57,120/- with 9% interest, holding the tempo driver solely negligent

The Insurance Company challenged the award on three grounds: (i) contributory negligence due to a head-on collision, (ii) excessive quantum of compensation, and (iii) lack of proper license (LMV holder driving a transport vehicle)

The Court applied Section 166 and Section 173 of the Motor Vehicles Act, 1988

Regarding licensing, it followed the precedent in M/s Bajaj Allianz General Insurance Co. Ltd. v. Rambha Devi, which held that a driver holding an LMV license under Section 10(2)(d) is authorized to drive a transport vehicle of the same class (under 7500 kg) without additional endorsement

For the quantification of income and prospective rise, the Court relied on National Insurance Company v. Pranay Sethi, establishing a 25% future rise for self-employed individuals aged 40-50

Govind Yadav v. New India Assurance Co. Ltd., which mandates using minimum wage yardsticks in the absence of documentary proof of income

Regarding negligence, the Court rejected the "head-on collision" argument for contributory negligence, noting that the FIR and panchnama, corroborated by eye-witness testimony (Exh. 23), proved the tempo driver hit the motorcycle while overtaking on the wrong side

Regarding liability, the Court held the Insurance Company liable despite the lack of a "transport" endorsement, citing settled law that an LMV license suffices for vehicles under 7500 kg

Regarding quantum, the Court found the Tribunal's notional income of Rs. 4,000/- too high. Since the deceased was a skilled mason in 2007, the Court applied the Gujarat State minimum wage for skilled workers (Rs. 2,800/-)

It adjusted the future rise from 30% to 25% as per Pranay Sethi for the 41-year-old deceased and revised conventional heads (consortium, estate, funeral) to align with standardized rates

It upheld the finding of 100% negligence on the tempo driver

The dependency loss was recalculated at Rs. 3,91,944/- based on a monthly income of Rs. 2,800/-, a 25% future rise, 1/3rd personal deduction, and a multiplier of 14

Conventional heads were fixed at Rs. 48,400/- per claimant for consortium and Rs. 18,150/- each for loss of estate and funeral expenses. The appellant Insurance Company is entitled to a refund of the excess amount deposited