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2026 Supreme(Online)(Mad) 44086

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. V. Karthikeyan, K. Rajasekar, JJ
New India Assurance Co. Ltd. – Appellant
Versus
C. Manimozhi – Respondent
Civil Miscellaneous Appeal No.1094 of 2025|Civil Miscellaneous Petition No.9124 of 2025



Advocates:
For the Appellants/Petitioners: R. Sivakumar
For the Respondents: M. Jayapal Rajan

Service benefits such as family pension and compassionate appointments cannot negate a claim for future prospects in accident compensation. Furthermore, medical expenses require verified documentation, and income tax must be deducted from the deceased's income when calculating total loss of dependency.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 and 173 - Quantum of compensation - Motor accident claim - Deductibility of income tax - Future prospects - Compassionate appointment and family pension - It is settled law that family pension and compassionate appointment constitute service benefits and cannot be factors to deny future prospects in motor accident compensation claims (Para 11) - Medical bills must be properly proved, and in the absence of corroboration or witness examination, photocopies of bills are insufficient for awarding compensation under the head of medical expenses (Para 12) - Income tax must be deducted from the annual income of the deceased when assessing loss of income (Para 13) - Consortium is to be awarded to all legal heirs, including spouse, son, and daughter (Para 15) - Contributory negligence by the deceased for lack of protective headgear is a valid consideration (Para 15).

Facts of the case:
An appeal was filed by an insurer challenging the motor accident compensation award. The appellants argued that the deceased’s family received compassionate appointment and pensionary benefits, that future prospects were wrongly included, and that the medical expenses were not supported by original bills. The lower tribunal had fixed the monthly income without deducting income tax.

Findings of Court:
Future prospects and personal living expenses were correctly applied, but the award for medical expenses was set aside due to lack of authentic proof (photocopies only). The court directed the deduction of income tax from the deceased's total annual income for accurate calculation of loss of earnings. The consortium was awarded to all children and the spouse.

Issues: Whether compassionate appointment and family pension justify denying future prospects; whether uncorroborated photocopies of medical bills are admissible; and whether income tax deductions are mandatory in calculating loss of dependency.

Ratio Decidendi: Service benefits like pension and compassionate appointments are distinct from accident damages and do not negate the claim for future prospects. Medical expenses must be substantiated by primary evidence, and judicial calculation of loss of income must account for statutory income tax liabilities.

Result: Appeal allowed; compensation modified and reduced.

Table of Content
1. overview of motor vehicle accident claim background and tribunal award. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. rejection of excluding future prospects based on family pension or compassionate appointments. (Para 8 , 9 , 10 , 11)
3. medical expenses require original bills/proper proof and discharge summary corroboration. (Para 12)
4. recalculation of loss of income after tax deduction and apportionment of consortium. (Para 13 , 14 , 15 , 16)
5. final order modifying compensation award and recovery direction. (Para 17)

(Judgment of the Court was made by Mr.K.RAJASEKAR,J.)

This Civil Miscellaneous Appeal has been filed by the Insurance Company challenging the quantum of compensation awarded in M.C.O.P. No.228 of 2019, dated 23.06.2023, on the file of the District Judge, Motor Accident Claims Tribunal, Erode.

2.For the sake of convenience, the parties are referred herein according to their litigative status and ranking before the Tribunal.

3.On 27.08.2019, at about 10:00 P.M., while the deceased M.R.Chandramohan was returning from Indian Bank, Vedharaniyam Branch towards East Coast Road, Sellur Village by riding a Mahindra Motorcycle bearing Registration No.PY-02-P-8248, while he reached near Amirtha School, a Bajaj Pulsar Motorcycle bearing Registration No.TN-18-AB-8129 came in the opposite direction, in a rash and negligent manner, and dashed against the deceased. Due to which, the deceased sustained head injuries on his right side, right upper limp, right foot with multiple fracture, left upper abdomen, left upper chest and other injuries and aberration all over his body. Immediately he was taken to the Hospital, for treatment. Inspite of various treatment, the injured died on 30.08.2019 at 9.00 P.M., due to multiple blunt injuries sustained by him in the accident. In this regard, a complaint was lodged at Nagore Police Station, Nagore registered in Crime No.297/2019 under Sections 279, 337 IPC @ 279, 304-A of IPC. For the loss of deceased M.R.Chandramohan, the claimants, who are the wife, daughter and son of the deceased filed this Claim Petition seeking compensation for a sum of Rs.90,00,000/- along with interest under section 166 of the Motor Vehicles Act.

4.The first and the second respondents, who are the driver and owner of the offending Motorcycle has not contested the claim before the Tribunal. The third respondent - Insurance Company filed a counter and contended that the first respondent has driven the motorcycle with due care and caution and the accident was taken place only due to the rash and negligence on the part of the deceased. The Insurance Company also disputed the age, income and occupation of the deceased and further contended that the compensation claimed under various heads are on the higher side, hence prays to dismiss the claim petition.

5.Before the Tribunal, on the side of the claimants, P.W.1 to P.W.3 were examined and Exs.P.1 to P.25 were marked. On the side of the respondents, R.W.1 and R.W.2 were examined and Exs.R1 and Ex.R10 were marked.

6.Based on the evidence placed on record, the Tribunal in Point No.1, has held that the rash and negligence on the part of the driver of the motorcycle bearing Registration No.TN-18-AB-8129 is responsible for the accident. In Point No.2, the Tribunal held that the third respondent shall pay the compensation to the petitioners at the first instance and thereafter they are permitted to recover the same from the second respondent/owner of the motorcycle. In Point No.3, the Tribunal has quantified and granted compensation for a sum of Rs.69,23,807/- along with interest @ 7.5% per annum from the date of filing of claim petition till the date of realization. 7.Aggrieved over the award, the Insurance Company has filed this appeal challenging the quantum of compensation awarded by the Tribunal.

8.The learned counsel appearing for the appellant-Insurance Company submitted that the son of the deceased had been granted appointment on compassionate grounds and his wife is

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