HIGH COURT OF JUDICATURE AT ALLAHABAD
SANDEEP JAIN, J.
Lal Ji Yadav - Appellant
Versus
National Insurance Co. Ltd. And Others – Respondents
FIRST APPEAL FROM ORDER No. - 7 of 2026
Decided On : 27-01-2026
| Table of Content |
|---|
| 1. factual background of the case (Para 1 , 2) |
| 2. appellant's arguments on liability (Para 3 , 4) |
| 3. court's analysis and relevant case law (Para 5 , 6 , 7) |
| 4. claimants' arguments for compensation increase (Para 8 , 10) |
| 5. legal provisions regarding compensation calculation (Para 9 , 11 , 12 , 13) |
| 6. determination of total compensation (Para 17 , 19) |
| 7. final order and directives (Para 20 , 21 , 22) |
JUDGMENT :
SANDEEP JAIN, J.
1. Ms. Deepali Srivastava Sinha, learned counsel for the owner appellant, learned counsel for the respondent Insurance Company and Sri Abhishek Tripathi, Advocate holding brief of Mohd. Asim Zulfiquar, learned counsel for the claimants-respondents are present.
2. The instant appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the owner of the offending three wheeler No.UP- 70-AT-3092 against the impugned judgment and award dated 21.07.2009, subsequently corrected on 29.07.2009, passed by the Motor Accident Claims Tribunal/District Judge, Kaushambi in M.A.C.P. No.70 of 2006 (Smt. Naghama Begam vs. Lal Ji Yadav and another) whereby, for the untimely death of Khaliq Ahmad @ Achchhe in a road accident that occurred on 09.04.2009, a compensation of Rs.3,89,000/- alongwith interest @ 6% per annum has been awarded to the claimant, which was ordered to be indemnified initially by the insurer of the offending vehicle but later on a right of recovery was given to it from the owner of the offending vehicle.
3. Learned counsel for the appellant submitted that since the offending vehicle was not having a valid permit and the offending driver had a valid and effective driving license to drive LMV(Private) on the date of the accident, hence, the liability to pay compensation was imposed on the owner of the tempo, which is erroneous. Learned counsel submitted that since the laden weight of the offending vehicle was only 975 kg, which was below 3000 kg, as such, no permit was required under Section 66 of the Motor Vehicles Act, 1988. It was further submitted that the offending driver Bablu Yadav possessed a driving license, which was valid and effective for driving LMV(Private) vehicle but the Tribunal has erred in concluding that the driving license having an endorsement to drive commercial vehicle was required. Learned counsel submitted that since the laden weight of the vehicle was below 3000 kg., as such, driver having a valid LMV(Private) license could have legally driven the offending vehicle for which no endorsement for driving transport vehicle was required, but this was not considered by the Tribunal. Learned counsel submitted that in view of the judgment of the Apex Court in the case of Bajaj Alliance General Insurance Co. Ltd. vs Rambha Devi and others (2025) 3 SCC 95 , the offending driver was having a valid and effective driving license to drive the vehicle. With these submissions, it was prayed that the appeal be allowed and the liability to pay compensation be imposed on the insurer of the offending vehicle.
4. Per contra, learned counsel for the respondent-Insurance Company has very fairly conceded that since the weight of the offending goods vehicle was below 3000 kg., as per Section 66 of the Motor Vehicles Act, 1988, a permit was not required for plying it. He further conceded that since the driver was having a license to drive LMV(Private) vehicle, as such, an endorsement for driving transport vehicle was not required at the time of the accident, as held by the Constitution Bench of the Apex Court in the case of Bajaj Alliance General Insurance Company Limited (supra).
5. I have heard learned counsel for the parties and perused the impugned judgment and documents submitted with the appeal.
6. The Constitution Bench of the Apex Court in the case of Bajaj Alliance General Insurance Company Limited (supra), after analyzing whether a holder of LMV license can drive all the vehicles below the weight of 7,500 kg, held as under:-
"181.1. A driver holding a licence for light motor
Bajaj Alliance General Insurance Co. Ltd. vs Rambha Devi and others
National Insurance Co. Ltd. vs. Pranay Sethi & Ors.
Magma General Insurance Company Ltd. Vs. Nanu Ram @ Chuhru Ram & others
Rahul Ganpatrao Sable vs Laxman Maruti Jadhav (Dead) through LRS and Others
AI
A driver with an LMV license may operate vehicles below 3000 kg without additional authorization, and future prospects must be included in compensation calculations.
The insurer is liable to indemnify compensation even if ownership transfer is unrecorded; the burden of proving permit violation lies with the insurer.
Insurance companies cannot evade liability solely based on permit violations; they must demonstrate specific breaches of policy conditions according to the Motor Vehicles Act.
Court reaffirmed that a vehicle under 7500 KG is a Light Motor Vehicle requiring only an LMV license, and claimants are entitled to enhanced compensation under Section 164 of the Motor Vehicles Act.
The main legal point established in the judgment is the requirement for the insurer to establish a fundamental breach of the policy to avoid liability and the determination of notional income in the ....
Insurance company is not liable for compensation when driver lacks valid endorsement for hazardous goods transport, reversing Claims Tribunal's decision.
The court established that compensation for motor accident victims must be just and equitable, considering loss of dependency and conventional heads, while adhering to established legal principles.
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