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2026 Supreme(Mad) 959

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P. VADAMALAI, J. 
Tata Aig General Insurance Company Limited – Appellant 
Versus 
Subbammal, W/o. Late. Chidambaram - Respondent
C.M.A.(MD)No.972 of 2021, C.M.P(MD)No.9237 of 2021
Decided On : 04-06-2026

Advocates Appeared:
For the Appellant : Mr.J.S.Murali
For the Respondent: Mr.B.Anandan

In computing compensation for the death of a bachelor in a motor accident, a mandatory deduction of 50% of the deceased's income must be applied towards personal and living expenses, consistent with established judicial precedents regarding dependency assessment.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal against award of compensation - Quantum of compensation - Deceased was a bachelor at the time of accident - Tribunal deducted 1/3rd income towards personal expenses - As per settled legal proposition, 50% deduction of income towards personal expenses is to be taken into account for a bachelor - Both parties consented to 50% deduction - Multiplier of 16 is appropriate as per settled legal precedents for the age group of the deceased - Future prospects of 40% are correctly added - Award modified to correct calculation errors. (Paras 11, 12, 15, 16)

Facts of the case:
The appeal was filed by the insurer challenging the compensation award determined by the motor accident claims tribunal for the death of an advocate clerk in a road accident. The tribunal had initially calculated the dependency loss using a 1/3rd deduction for personal expenses despite the deceased being a bachelor. The insurer contended that the income should be based on notional basis and that the personal expense deduction was incorrect.

Findings of Court:
The Court held that in the case of a bachelor, 50% of the income must be deducted towards personal expenses as per established legal principles. By adjusting the personal expense deduction to 50% and applying the correct multiplier and future prospects, the total compensation was reduced from the original award amount.

Issues: The main issues were the determination of the correct personal expense deduction for a bachelor deceased to calculate dependency loss and the verification of the compensation quantum.

Ratio Decidendi: Following fixed legal precedents regarding the deduction of personal expenses for a bachelor and the application of multiplier based on age, the court recalculated the dependency loss. The error in the tribunal's deduction rate necessitated a modification of the total compensation awarded.

Result: Appeal partly allowed. The compensation award was modified and reduced.

Table of Content
1. establishing undisputed facts of the motor vehicle accident and the parties involved. (Para 2 , 3 , 4 , 8)
2. determining liability for negligence and identifying the scope of the appeal regarding quantum. (Para 5 , 6 , 9 , 10 , 11)
3. fixation of notional income and future prospects for a deceased bachelor. (Para 12 , 13 , 15)
4. applying standard deductions for personal expenses and re-apportioning compensation amounts. (Para 17 , 18)

JUDGMENT :

P.VADAMALAI, J.

This Civil Miscellaneous Appeal is filed challenging the Award, dated30.07.2020 passed in M.C.O.P.No.704 of 2016 by the Motor Accident Claims Tribunal/Special Sub Court dealing with MCOP Cases, Tirunelveli.

2.The 3rd respondent in M.C.O.P.No.704 of 2016 is the appellant herein. The respondents 1 to 5 are the petitioners/claimants and the respondents 6 to 9 are the respondents 1, 2, 4 and 5 in M.C.O.P.No.704 of 2016.

3.For the sake of convenience, the parties as arrayed in M.C.O.P.No.704 of 2016 are adopted hereunder.

4.The brief facts of the case:

On 16.05.2014 at about 12.30 p.m., the deceased Kattlingam was travelling in the 1st respondent’s Indica car bearing registration No.TN 69 AA 8411 from Trichy to Thirupathi. The said car was driven by its driver in a rash and negligent manner near Ramakrishna Polytechnic at Perambalur on Trichy to Chennai NH Road and hit against the rear portion of the Eicher Mini lorry bearing registration No.TN 39 AU 9912 belongs to the 4th respondent.Due to the impact, the deceased Kattlingam sustained multiple fatal injuries and died on the spot. The accident took place due to the sole rash and negligent act of the 1st respondent. The deceased Kattlingam was a bachelor who was aged 31 years. He was working as an advocate clerk and was earning Rs.25,000/- p.m. The petitioners were dependent on the income of the deceased Kattlingam. An FIR in Crime No.320 of 2014 U/s.279, 337 and 304(A) of IPC was registered against the driver of the 1st respondent by Perambalur Police Station. The car of the 1st respondent was insured with the 3rd respondent. The 4th respondent’s Eicher Mini lorry was insured with the 5th respondent. Hence, the petitioners filed a claim petition seeking compensation of Rs.25,00,000/-.

5.The 3rd respondent/TATA AIG General Insurance Company Ltd., objected to the claim petition and contended that the accident took place due to the negligent driving of the 4th respondent’s Eicher Mini lorry. The 1st respondent was not responsible for the accident. So, the 3rd respondent is not liable to pay any compensation to the petitioners/claimants.

6.The 5th respondent/Reliance General Insurance Company Ltd., objected to the claim petition and submitted that the accident happened only due to rash and negligent driving of the 1st respondent’s car. The 4th respondent’s Mini Lorry was not responsible for the accident. Hence, this respondent, being the insurer of the 4th respondent, is not liable for any compensation.

7.The respondents 1, 2 and 4 remained ex-parte before the Tribunal.

8.Before the Tribunal, both sides adduced oral and documentary evidence. The petitioners examined two witnesses as P.W.1 and P.W.2 and marked five documents as Ex.P.1 to Ex.P.5. On the respondents' side, no witness was examined and no exhibit was marked.

9.After hearing both sides and after considering the evidence, the Tribunal has held negligence on the driver of the 1st respondent’s Indica car. The Tribunal has arrived at a total compensation of Rs.16,82,800/- and directed the 3rd respondent/Insurance Company to pay the amount to the petitioners with interest by its order, dated 30.07.2020.

10.Aggrieved by the said award, the 3rd respondent/TATA AIG General Insurance Company Ltd., has preferred this Civil Miscellaneous Appeal.

11.Heard both sides and perused the records in this Civil Miscellaneous Appeal. There is no dispute between both sides that the accident took place due to the rash and negligent driving of the 1st respondent’s driver. The only dispu

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