Madras High Court Partly Allows Insurance Company's Appeal Reducing Compensation in Motor Accident Claim. Compensation Reduced from Rs. 19,36,300/- to Rs. 14,36,300/- Due to Lack of Evidence for Medical Expenses and Excessive Pain and Suffering Award.

High Court: Madras High Court
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Case Note & Summary

The appeal was filed by the insurance company challenging the quantum of compensation awarded by the Motor Accidents Claims Tribunal (MACT), VI Court of Small Causes, Chennai, in MCOP No. 4282 of 2018. The claimant, V. Mohan, had filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs. 15,00,000/- for injuries sustained in a road accident on 25.12.2017. The accident occurred when a lorry driven rashly and negligently hit the claimant's motorcycle near Thattampattu Village, causing grievous injuries. The Tribunal, after considering evidence including discharge summaries (Ex.P2 to Ex.P4) and a disability certificate showing 27% disability, awarded a total compensation of Rs. 19,36,300/- with interest. The insurance company appealed, contending that the amounts awarded under the heads of pain and suffering and medical expenses were excessive and lacked proper evidence. The claimant's counsel argued that the award was just and proper and did not file cross-objections. The High Court examined the records and found that the claimant had undergone inpatient treatment for 35 days across three hospitalizations. However, the claimant had not produced any medical bills or receipts to prove the medical expenses. The Tribunal had awarded Rs. 5,00,000/- for medical expenses, which the High Court found excessive and reduced to Rs. 1,00,000/-. Similarly, the award of Rs. 1,00,000/- for pain and suffering was reduced to Rs. 50,000/- as there was no evidence of severe pain beyond the normal period. The compensation for disability (Rs. 7,000 per percentage for 27% disability) and other heads were upheld. The total compensation was reduced from Rs. 19,36,300/- to Rs. 14,36,300/-. The appeal was partly allowed, and the insurance company was directed to deposit the modified amount with interest.

Headnote

A) Motor Accident Compensation - Quantum of Compensation - Pain and Suffering - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 1,00,000/- for pain and suffering, which was reduced to Rs. 50,000/- by the High Court as the claimant had not produced any evidence to show that he suffered severe pain beyond the normal period of treatment. (Paras 9-10)

B) Motor Accident Compensation - Medical Expenses - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 5,00,000/- for medical expenses, but the High Court reduced it to Rs. 1,00,000/- as the claimant had not produced any medical bills or receipts to substantiate the expenses. (Paras 9-10)

C) Motor Accident Compensation - Disability - Non-Functional Disability - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 7,000/- per percentage of disability for a 27% non-functional disability, which was upheld by the High Court as proper. (Para 8)

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Issue of Consideration

Whether the compensation awarded by the Motor Accidents Claims Tribunal under the heads of pain and suffering and medical expenses was excessive and required reduction.

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Final Decision

The appeal is partly allowed. The compensation awarded by the Tribunal is reduced from Rs. 19,36,300/- to Rs. 14,36,300/-. The insurance company is directed to deposit the modified amount with interest at 7.5% per annum from the date of petition till deposit, less any amount already deposited. The claimant is permitted to withdraw the amount. No costs.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Compensation for injuries
  • Pain and suffering
  • Medical expenses
  • Disability assessment
  • Non-functional disability
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Case Details

2026:MHC:1758

CMA No. 1043 of 2026 and CMP No. 10422 of 2026

2026-04-27

C.V. Karthikeyan, K. Rajasekar

2026:MHC:1758

Mr. P. Suresh Srinivasan (for appellant), Mr. N. Sivaprakash (for respondent)

The Manager, Reliance General Insurance Company Limited

V. Mohan, E. Balakrishnan

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Nature of Litigation

Civil Miscellaneous Appeal against quantum of compensation awarded by Motor Accidents Claims Tribunal

Remedy Sought

Insurance company sought reduction of compensation awarded to claimant

Filing Reason

Insurance company challenged the quantum of compensation as excessive under heads of pain and suffering and medical expenses

Previous Decisions

MACT, VI Court of Small Causes, Chennai awarded Rs. 19,36,300/- in MCOP No. 4282 of 2018 on 05.04.2025

Issues

Whether the compensation awarded under the head of pain and suffering was excessive? Whether the compensation awarded under the head of medical expenses was excessive and without proper evidence?

Submissions/Arguments

Appellant/Insurance Company: The amounts awarded under pain and suffering and medical expenses are on the higher side and should be modified as there is no proper evidence regarding medical expenses. Respondent/Claimant: The Tribunal considered all evidence and the nature of injuries, and the award is just and proper; no cross-objections filed.

Ratio Decidendi

In motor accident compensation claims, awards for pain and suffering and medical expenses must be supported by evidence. Without medical bills or proof of expenses, the Tribunal's award may be reduced. The percentage method for non-functional disability is proper.

Judgment Excerpts

The claimant had sustained open grade IIIB distal femur and segmented tibia fracture with loss of extensor mechanism right knee. The Tribunal after considering the medical certificate had taken a view that these injuries sustained by the claimant is a non functional disability and thereby granted compensation by percentage method and awarded a sum of Rs.7,000/- per injury and we are of the view that the same is proper. The claimant has not produced any medical bills or receipts to show that he had spent a sum of Rs.5,00,000/- towards medical expenses. Hence, we are of the view that the amount awarded under the head medical expenses is on the higher side and the same is reduced to Rs.1,00,000/-.

Procedural History

The claimant filed MCOP No. 4282 of 2018 before the MACT, VI Court of Small Causes, Chennai, which awarded compensation on 05.04.2025. The insurance company filed CMA No. 1043 of 2026 before the Madras High Court challenging the quantum. The High Court heard the appeal and delivered judgment on 27.04.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 173
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