Summary: The Madras High Court upheld a compensation ruling for the family of Mr. Rajendran, who died in a road accident in 2010. The insurance company’s appeal to reduce the compensation was dismissed.
On January 24, 2010, Mr. S. Rajendran, who worked as a machine operator and was also an insurance agent, was tragically killed in an accident near Udumalpet. He was coming back from a religious trip to the Palani Murugan Temple when a motorcycle hit him. The bike was being ridden carelessly by another person, causing severe injuries and Mr. Rajendran's death on the same day.
Mr. Rajendran's wife, Anitha, and their two children asked for ₹50,00,000 as compensation at the Motor Accident Claims Tribunal in Udumalpet. On January 2, 2019, the Tribunal decided they should receive ₹44,97,720 with a 7.5% yearly interest. The insurance company, M/S. United India Insurance Co. Ltd., disagreed with this decision.
M/S. United India Insurance Co. Ltd., represented by Mr. S. Arun Kumar, argued that the compensation was too high. They claimed that the Tribunal wrongly included money from Mr. Rajendran's insurance agency work, which had been transferred to Anitha. They wanted only his salary from Lakshmi Machine Works Ltd. to be considered.
"The money from the insurance agency should not be counted as it continues to help the family," argued Mr. Kumar.
Anitha’s lawyer, Mr. K. Govi Ganesan, responded that Anitha had her own insurance agency and was not getting money from her late husband’s agency. He insisted that the compensation was fair and supported by evidence.
The court, with Justices C.V. Karthikeyan and K. Kumaresh Babu in charge, looked at all the evidence, including statements from an insurance company employee, Mr. Saravanan. They decided that Mr. Rajendran was legally an insurance agent along with his main job. The court found the compensation fair and dismissed the appeal on January 28, 2026.
"The compensation is fair and based on valid evidence," the court stated.
