Police said Manikandan who suffered serious burns was battling for life at a government hospital.
A native of Tirunelveli district, the youth was fined for allegedly not fastening his seat belt while driving the car on the busy Rajiv Gandh Salai, police said.
Though the driver paid the fine, he subsequently picked up an argument with the traffic police personnel and allegedly tried to click pictures with his mobile phone about "police harassment."
Alleging that he was humiliated in full public glare, the driver then suddenly took out a petrol can from his car, poured the fuel all over him and set himself ablaze.
He was rushed to Government Kilpauk Medical College Hospital, a speciality institution for treating burn injuries.
Feeling outraged, fellow cab drivers and members of the general public blocked traffic on the RG Road, gateway to the busy Information Technology corridor of the city.
Hospital Dean P Vasanthamani said the victim has suffered 59 per cent burns and a team of doctors has been tasked with providing treatment.
Police commissioner A K Viswanathan visited the victim in the hospital and later told reporters that appropriate action would be taken in the matter and a preliminary inquiry has been done.
The incident comes months after a man immolated his two children and wife before committing self-immolation in front of the district collectorate in Tirunelveli over alleged usury.
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