Gujarat HC Raises 56-Year-Old Pillion Rider’s Injury Compensation By ₹1.30 Lakh, Adding 10% For Future Income

On 13 March 2002, the appellant was riding pillion on a scooter involved in a collision with a truck near Todia Fatak, sustaining injuries including fractures.

He sought ₹3 lakh in compensation.

The Motor Accident Claims Tribunal partly allowed the claim and awarded ₹57,100, with 9% annual interest.

The appellant challenged the award, arguing that the Tribunal had failed to account for prospective income and had inadequately assessed compensation under several heads.

The High Court reassessed compensation, noting that the appellant was 56 years old at the time of the accident.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of a Motor Accident Claims Tribunal.

The Court treated the Act as beneficial legislation requiring just and fair compensation, assessed on principles of fairness, reasonableness and equality.

Relying on National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, it applied a 10% prospective rise in income.

The Court found that the Tribunal had not properly considered prospective income and future loss of income.

It reassessed the future-loss component using monthly income of ₹8,054, a multiplier of 11, disability of 14%, and a 10% prospective rise, arriving at ₹1,63,720.

It retained the Tribunal’s amounts for medical expenses, pain and suffering, and special diet and transport, producing total compensation of ₹1,87,470.

After deducting the original award of ₹57,100, the Court determined that the appellant was entitled to an additional ₹1,30,370.

The insurer was directed to deposit the enhanced amount before the Tribunal within eight weeks; the remaining directions of the Tribunal were left unchanged.