Executives at fleet operators and ride-hailing platforms also said that insurance claims would have become difficult for drivers had the verdict gone the other way. New Delhi: The Supreme Court verdict that individual’s with light motor vehicle (LMV) driving licence don’t need any other authorisation to operate transport vehicles, including commercial passenger vehicles, is a boost for cab aggregators and fleet operators, industry executives said.
The verdict was related to a case that can be traced back to 2017, when a division bench of the top court had ruled that drivers without a transport endorsement on their licence can ply commercial vehicles of up to 7,500 kg in unladen weight. This was challenged by insurance companies, which said the decision put the safety of people at risk.
The matter was subsequently referred to the court’s Constitution Bench, which delivered a 126-page judgment last week.
“Nearly 70% of the commercial (passenger vehicle) drivers simply hold an LMV (light motor vehicle) licence without the transport endorsement…if the Supreme Court’s decision went the other way, it would have been a nightmare,” a senior executive at a ride-hailing platform told ET.
Executives at fleet operators and ride-hailing platforms also said that insurance claims would have become difficult for drivers had the verdict gone the other way.
“On the basis of this technicality that LMV holders must have a transport endorsement to operate commercial cabs, insurance companies wanted to not settle claims with accident victims…,” said an executive of a Mumbai-based fleet operator. “This was a major stress factor among our drivers.”
