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Holder of LMV licence had no authority to drive commercial vehicle without permission of concerned authority

In Reliance General Insurance Co. Ltd. Vs. Jivabhai Maldebhai Godhaniya, the NCDRC held that considering the distinct requirements laid down in The Motor Vehicles Act, 1988 and The Central Motor Vehicles Rules, 1989 about the grant of licence for commercial vehicles, it is clear that the holder of the LMV licence had no authority to drive the commercial vehicle without proper endorsement from the concerned transport authority. The detailed analysis of the legal provisions, made in para 10 above about the basic requirements for the grant of licence for transport/non-transport vehicles, make it clear that for enabling a person to drive a commercial vehicle, the licencing authority has to ensure that he fulfils the requisite conditions of age, educational qualifications, medical certificate etc. Unless a person satisfies the licencing authority on that score and obtains proper authorisation for driving a commercial vehicle, he cannot be stated to be in possession of a valid and effective driving licence. In the instant case, therefore, there is evidently a fundamental breach of the terms and conditions of the policy for non-possession of a proper licence. It is held, therefore, that the insured is not liable to be granted any compensation by the petitioner under the terms and conditions of the policy.

It should be noted that the question whether for the drivers having licence to drive light motor vehicles there is a necessity of obtaining endorsement to drive the transport vehicle when the transport vehicle is of class of light motor vehicle came up before the Supreme Court in Mukund Dewangan vs Oriental Ins.Co.Ltd on 11 February, 2016 and the Hon'ble court has referred the same to a larger bench and the decision is still pending.
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