Authority: High Court of Judicature at Madras

Order Date: 07 July 2026

Case Overview

  • Appellants: Devaki, Sudha, Raja, Rajkumar (wife and children of the deceased Arjunan).
  • Respondents: Saravanan and The Bharati AXA General Insurance Co. Ltd.
  • The dispute arose from a motor accident on 26 April 2018 at about 20:15 hrs near KKG Store Company, Kuthambakkam, where a Mahindra van owned by the first respondent struck the two‑wheeler ridden by Arjunan, causing fatal head injuries.
  • An FIR (Crime No.253 of 2018) was registered.
  • The claimants sought compensation before the Motor Accident Claims Tribunal (MACT), Special District Court, Thiruvallur (MACTOP No.77 of 2018).
  • The insurance company contended that no valid policy covered the offending vehicle on the accident date.
  • The Tribunal found the policy produced to be a fabricated document, issued for a different vehicle in Haryana to a person named Manoj Garg, and therefore exonerated the insurer.
  • The Tribunal fixed total compensation of Rs 7,33,400, broken down as follows:
  • Loss of earnings of the deceased: Rs 6,53,400
  • Loss of estate: Rs 15,000
  • Loss of consortium: Rs 40,000
  • Funeral expenses: Rs 15,000
  • Transport to hospital expenses: Rs 10,000
  • The compensation was directed to be paid by the vehicle owner (first respondent) with interest at 7.5% per annum.
  • The appellants appealed, arguing that the insurer should be liable despite the fake policy because the insurer failed to investigate.

Final Outcome

  • The High Court held that the insurance policy was indeed not issued for the offending vehicle and was a fake policy.
  • It reiterated that an insurer’s liability arises only from a valid contract of insurance; absent such a contract, the insurer cannot be held vicariously liable.
  • Consequently, the Court found no ground to interfere with the Tribunal’s award.
  • The Civil Miscellaneous Appeal (CMA No.269 of 2022) was dismissed with no costs, and the Tribunal’s award of Rs 7,33,400 with 7.5% interest remains confirmed.

Topics: Motor Accident Liability, Insurance Fraud