Madras High Court Partially Allows Insurance Appeal in Motor Accident Claim — Reduces Compensation Due to Age Discrepancy and Modified Multiplier. Aadhar card held to have greater probative value than police records for age determination under Section 166 of Motor Vehicles Act, 1988.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The case arises from a road accident on 05.02.2020 near Usha Marbles, Vanjipalayam Road, Tirupur, where the first respondent (claimant) sustained spinal cord injuries and other injuries. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs.40,00,000. The Tribunal (Special District Judge, Tiruppur) examined PW1 (claimant) and PW2, marked Exs.P1 to P13, and also considered Ex.C1 (disability certificate from Medical Board, Tiruppur) and Ex.X1 (PW2's Aadhar card). No evidence was adduced by the respondents. The Tribunal accepted the claimant's case regarding negligence of the driver of the offending vehicle and held the respondents jointly and severally liable. Based on Ex.P7 (Aadhar card), the Tribunal fixed the claimant's age at 48 years and awarded Rs.32,52,144 as compensation with interest. The insurance company appealed, contending that the driver lacked a driving license (violation of policy condition), the age should be 53 years based on oral evidence, and the quantum was excessive. The High Court heard the parties at the admission stage. The court examined the oral evidence of PW1, noting that Exs.P2 and P3 (police records) recorded the age as 52 years, but the claimant affirmed that his name was not correctly given in those exhibits. The court held that the Aadhar card, being a pre-accident document, has greater probative value than police records prepared at the time of FIR. Thus, the age of 48 years was upheld. However, the court found that the Tribunal had applied a multiplier of 13, whereas as per Sarla Verma, for age 48, the multiplier should be 14. The court recalculated the loss of future income using the correct multiplier and also reduced compensation under other heads (pain and suffering, loss of amenities, future medical expenses) as they were on the higher side. The total compensation was reduced from Rs.32,52,144 to Rs.28,00,000, with interest at 7.5% per annum from the date of petition till deposit. The insurance company was directed to deposit the modified amount within six weeks. The appeal was partly allowed.

Headnote

A) Motor Vehicles Act - Age Determination - Aadhar Card vs. Police Records - Section 166 Motor Vehicles Act, 1988 - The court held that Aadhar card, being a document that came into existence before the accident, has greater probative value than police records (FIR) which are prepared at the time of registration of the accident. The Tribunal's reliance on Aadhar card to fix age at 48 years was upheld, rejecting the insurance company's contention based on oral evidence and FIR entries. (Paras 7-8)

B) Motor Vehicles Act - Compensation - Functional Disability - Section 166 Motor Vehicles Act, 1988 - The court modified the multiplier from 13 to 14 based on the age of the claimant (48 years) as per Sarla Verma case, and reduced the compensation for loss of future income accordingly. The court also reduced compensation under other heads such as pain and suffering, loss of amenities, and future medical expenses, finding them on the higher side. (Paras 9-10)

C) Motor Vehicles Act - Quantum of Compensation - Reduction - Section 166 Motor Vehicles Act, 1988 - The court reduced the total compensation from Rs.32,52,144 to Rs.28,00,000, with interest at 7.5% per annum from the date of petition till deposit, and directed the insurance company to deposit the modified amount within six weeks. (Paras 10-11)

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Issue of Consideration

Whether the age of the claimant should be determined based on Aadhar card or police records, and whether the compensation awarded by the Tribunal is excessive.

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Final Decision

The appeal is partly allowed. The award of the Tribunal is modified, reducing the total compensation from Rs.32,52,144 to Rs.28,00,000. The insurance company is directed to deposit the modified amount with interest at 7.5% per annum from the date of petition till deposit, within six weeks from the date of receipt of a copy of this order. On such deposit, the claimant is permitted to withdraw the amount. No costs. Consequently, connected miscellaneous petition is closed.

Law Points

  • Age determination based on Aadhar card prevails over police records
  • Functional disability assessment
  • Multiplier selection based on age
  • Compensation under various heads
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Case Details

2026 LawText (MAD) (06) 166

CMA No. 1866 of 2026 and CMP No.14980 of 2026

2026-06-23

C.V. KARTHIKEYAN, K.RAJASEKAR

2026:MHC:2510

Mr.R.Sunilkumar

The Branch Manager, Reliance General Insurance Co. Ltd

Srirenga Narayanamoorthi, N.Thangavelu

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Nature of Litigation

Civil Miscellaneous Appeal against award of compensation in motor accident claim

Remedy Sought

Insurance company sought to set aside the award dated 02.01.2026 in MCOP.No.1076 of 2021 on the file of the Special District Judge, Tiruppur

Filing Reason

Insurance company aggrieved by the award of compensation, contending that the driver lacked driving license, age was wrongly fixed, and quantum was excessive

Previous Decisions

Tribunal awarded Rs.32,52,144 as compensation with interest on 02.01.2026

Issues

Whether the age of the claimant should be determined based on Aadhar card or police records? Whether the compensation awarded by the Tribunal is excessive and requires modification?

Submissions/Arguments

Appellant (Insurance Company): Driver of offending vehicle did not possess driving license, violation of policy condition; age of injured was 53 years based on oral evidence; quantum of compensation under various heads is on the higher side. Respondent (Claimant): Age is 48 years as per Aadhar card; compensation awarded is just and proper.

Ratio Decidendi

For age determination in motor accident claims, an Aadhar card that came into existence before the accident has greater probative value than police records (FIR) prepared at the time of registration of the accident. The multiplier for loss of future income should be as per the Sarla Verma guidelines based on the age of the claimant.

Judgment Excerpts

Since the documents relied on by the insurance company is based on the records of the police executed at the time of registration of FIR, these documents could not be having probative value than the Aadhar Card which came to into existence before the accident. We are of the view that the Tribunal has applied the multiplier of 13, whereas as per the Sarla Verma case, for the age of 48, the multiplier is 14.

Procedural History

Claim petition MCOP.No.1076 of 2021 filed before Special District Judge, Tiruppur, which awarded compensation on 02.01.2026. Insurance company filed CMA No. 1866 of 2026 before the High Court of Judicature at Madras on 23.06.2026.

Acts & Sections

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