LMV License Holder Permitted to Drive Transport Vehicle Below 7,500 kg Without Additional Authorization

The appellant (Insurance Company) challenged an award dated 19.03.2019 passed by the Motor Accident Claims Tribunal (MACT), Bastar, which awarded ₹2,95,331/- to the claimant (Respondent No. 1) for injuries sustained in an accident involving a Mahindra Pickup (Registration No. CG-17-H-2645).

The Insurance Company sought exoneration, arguing that the driver held a Light Motor Vehicle (LMV) license whereas the offending vehicle was a goods/transport vehicle.

Simultaneously, the claimant filed a cross-objection seeking enhancement of compensation, arguing that the Tribunal undervalued his monthly income and failed to account for future prospects, future medical expenses, and adequate pain and suffering.

1. Whether an Insurance Company can be exonerated from liability if the driver of a transport vehicle (with gross weight under 7500 kg) holds only an LMV license.

2. Whether the compensation awarded by the Claims Tribunal requires enhancement based on minimum wage notifications and future prospects.

The Court primarily applied Section 173 of the Motor Vehicles Act, 1988 regarding appeals.

The Court relied on the Constitution Bench precedent of the Supreme Court in Bajaj Alliance General Insurance Company Limited v. Rambha Devi and others (2025) 3 SCC 95, which clarified that a driver holding an LMV license under Section 10(2)(d) is permitted to operate a "transport vehicle" with a gross weight not exceeding 7500 kg without a separate endorsement.

For the calculation of compensation, the Court applied the Chhattisgarh Minimum Wages Notification issued by the Labour Commissioner and the principles for awarding future prospects and non-pecuniary damages.

Regarding liability, the Court found the issue res integra following Rambha Devi, noting that LMVs and transport vehicles (under 7500 kg) have a legal overlap; thus, the driver’s LMV license was valid for the Mahindra Pickup and the Insurance Company could not be exonerated.

Regarding the quantum of compensation, the Court found the Tribunal’s assessment of ₹6,000/- monthly income erroneous. Referring to the Minimum Wages Notification, the Court revised the income to ₹7,800/- per month.

The Court added 10% for future prospects and increased the awards for pain and suffering and future medical treatment, determining that the original award failed to reflect the claimant’s actual earning capacity and necessary future costs.

The compensation was enhanced from ₹2,95,331/- to ₹3,95,214/-, entitling the claimant to an additional amount of ₹99,803/- with 9% interest per annum from the date of the claim application. The Insurance Company was directed to deposit the enhanced amount within three months.