Madras High Court

Madras High Court: National Insurance Company Must Pay in Crane Accident Case

Updated
Dec 18, 2025 11:00 AM
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Summary: The Madurai Bench of the Madras High Court has decided that the National Insurance Company must pay money for a deadly accident involving a crane. The court increased the amount to over 7 lakh rupees.

Accident Details: Crane Mishap Leads to Tragic Death

On January 31, 2005, Amudha was involved in a tragic accident. She was standing near Anand Industries when a crane, driven carelessly, hit her. The crane's front wheel ran over her, causing severe injuries. She was taken to the Government Hospital in Trichy, where she was declared dead.

Legal Battle: Insurance Company Challenges Compensation

The National Insurance Company, which was the second party in the case, argued against the compensation order from the Motor Accident Claims Tribunal. They claimed the accident happened because of mechanical issues and said the location was not a public place, so they should not be responsible.

Court's Findings: Public Place and Responsibility

Justice R. Poornima looked at the case details and found that the accident happened at the entrance of the company, a place open to the public. This made it a public place under the Motor Vehicles Act. The court rejected the National Insurance Company's argument, saying they were responsible.

Compensation Details: Calculation and Decision

The court changed the compensation based on rules from a previous Supreme Court decision. The deceased's income was calculated with future possibilities, and a deduction was made for personal expenses. The final compensation was set at ₹7,10,400.

“The income of the deceased at the time of accident is ₹4,500. Add future prospects 40%... Total ₹7,10,400.”

Verdict Summary: Court's Decision

The court rejected the appeal by the National Insurance Company and ordered them to pay the revised compensation amount. The payment is to be made with interest from the date of the original petition. The court also directed that the compensation be shared among the legal heirs of the deceased.