Gujarat HC Raises Injured Pillion Rider’s Award To ₹11.31 Lakh, Drops 15% Deduction Because He Was Not Driving

The appellant, an injured claimant and pillion rider, appealed under Section 173 of the Motor Vehicles Act, 1988, against the Motor Accident Claims Tribunal’s award in MACP No. 24 of 2014.

The Tribunal assessed his monthly income at ₹4,000, awarded compensation under several heads, and deducted 15% for the motorcycle driver’s negligence.

The claimant contended that the compensation was inadequate and that the deduction was impermissible because he was a pillion rider.

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

The Court treated the Act as beneficial legislation and held that compensation must be just, fair, and reasonable.

Applying National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680, it added 40% to the assessed income towards future prospects.

The Court also applied the principle that a passenger who is not driving is not personally responsible for the driver’s negligence; the passenger’s claim is therefore assessed on the basis of composite negligence, rather than reduced for the driver’s negligence.

The Tribunal’s monthly income assessment of ₹4,000 was below the ₹5,750 minimum wage the Court found applicable at the time of the 2011 accident.

The Court added 40% for future prospects, producing a monthly income of ₹8,050, and recalculated future loss of income using the Tribunal’s 36% disability assessment and multiplier of 18.

It also increased compensation for pain, shock, and suffering from ₹50,000 to ₹75,000 and recalculated six months’ actual loss of income as ₹34,500.

Because the claimant was a pillion rider and not the driver, the Court held that the 15% deduction for the driver’s negligence could not be applied to his award.

The Court reassessed total compensation at ₹11,31,478 and set aside the 15% negligence deduction.

After crediting the Tribunal’s net award of ₹6,63,892, it awarded enhanced compensation of ₹4,67,586, with interest at 9% per annum from the date of the claim petition until realization.

The insurer was directed to deposit the enhanced amount with interest within six weeks; the Tribunal was directed to disburse the awarded amount, subject to verification and deduction of any unpaid court fees.