Authority: High Court of Judicature at Madras

Order Date: 24-07-2026

Case Overview

  • Appellants: Tmt. Chitra (wife), Mrs. Rajalakshmi, Mrs. Rani, Ms. Jeevitha – daughters of the deceased K. Mani, residing at 48 Gandhi Street, Chennai.
  • Respondents: D. Elumalai (owner of the mini lorry) and United India Insurance Co. Ltd., Ambattur, Chennai.
  • The appeal (Civil Miscellaneous Appeal No.142 of 2024) under Section 173 of the Motor Vehicles Act, 1988 challenges the award dated 08‑06‑2023 passed by the Motor Accidents Claims Tribunal (V Small Causes Court), Chennai, in MCOP No.3083 of 2014.
  • Facts: On 22‑01‑2014, K. Mani was travelling as a load‑man in a Tata Benz mini lorry owned by D. Elumalai when the driver applied a sudden brake, causing K. Mani to be thrown out, sustain grievous injuries and die on 01‑02‑2014. A FIR (Crime No.117 of 2014) was lodged against the driver.
  • The insurer contended that the policy covered only the driver of the goods carrier and not any passenger or employee, seeking dismissal of the claim. The Tribunal held the policy did not cover the deceased and directed the vehicle owner to pay compensation of Rs 12,37,000 (including medical, loss of estate, funeral, loss of love & affection, transportation expenses) with interest at 7.5% p.a.
  • Evidence: PW‑2, a fellow load‑man, testified that both he and the deceased were employed by the vehicle owner as load‑men for over 15 years. PW‑1 (wife) corroborated that the deceased was working as a load‑man and was seated on bricks when the accident occurred. The insurer’s witness argued the deceased was a third‑party passenger, not an employee. The Court found the pre‑ponderance of probability established the deceased’s employment relationship with the vehicle owner, bringing him within the policy coverage.

Final Outcome

  • The High Court set aside the Tribunal’s finding that the policy excluded the deceased and held that the insurance policy does cover a load‑man passenger.
  • The appeal is partly allowed; United India Insurance Co. Ltd. is directed to deposit the full compensation amount of Rs 12,37,000 together with interest at 7.5% per annum from the date of the claim petition to the date of realization, within six weeks of receipt of the judgment.
  • Upon deposit, the claimants may withdraw the amount plus accrued interest as apportioned by the Tribunal. No costs awarded.

Topics: Insurance Compensation, Motor Accident Liability