P&H HC Upholds Insurer’s Liability For Fatal Crash, As LMV-Licensed Driver Could Drive Goods Three-Wheeler Under 7,500 Kg

The claimants sought compensation under Section 166 of the Motor Vehicles Act, 1988, for the death of Kasturi Lal.

The Tribunal initially awarded Rs. 6,10,400 with interest at 9% per annum, holding the driver and owner liable but rejecting the claim against the insurer.

On appeal by the driver and owner, the High Court remanded the matter for determination of the insurer’s liability.

On remand, the Tribunal held the insurer liable, relying on Mukund Dewangan v. Oriental Insurance Company Limited.

The insurer appealed, contending that the driver’s licence—though authorising him to drive a light motor vehicle—did not permit him to drive the goods-carrying three-wheeler

Under Sections 2(21) and 10(2)(d) of the Motor Vehicles Act, 1988, a light motor vehicle licence covers a transport vehicle whose gross vehicle weight does not exceed 7,500 kg; no separate transport-vehicle endorsement is required for such a vehicle.

The Court relied on Mukund Dewangan v. Oriental Insurance Company Limited, Civil Appeal No. 5826 of 2011, decided 3 July 2017, and the Constitution Bench decision in M/s Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi, 2025 (1) RCR (Civil) 5, which upheld that principle

The insurer’s reliance on National Insurance Company Limited v. Shinder Kaur was not accepted in light of those Supreme Court decisions

The driver held a light motor vehicle licence, and the goods-carrying three-wheeler he was driving had a gross vehicle weight below 7,500 kg.

Applying Mukund Dewangan, as upheld by the Constitution Bench in Rambha Devi, the Court held that the vehicle fell within the relevant light motor vehicle class and that no separate endorsement was necessary.

The driver was therefore competent to drive it, and the insurer could not avoid liability on the asserted licensing ground

Finding no illegality or infirmity in the Tribunal’s award dated 31 July 2018, the Court dismissed the appeal and disposed of any pending applications accordingly