Inadequate assessment of injury compensation warrants enhancement to ensure just and fair compensation.

On 18 February 2015, the appellant-claimant was travelling as a passenger in rickshaw No. GJ-4-W-5797 near Hebatpur Patiya on the Bhavnagar–Dholera Highway. A truck allegedly driven rashly and negligently collided with the rickshaw, causing the claimant serious injuries.

The claimant filed Motor Accident Claim Petition No. 217 of 2015 before the Motor Accident Claims Tribunal, Bhavnagar, claiming compensation from the vehicle owners, driver and insurer.

The Tribunal awarded compensation of Rs. 9,04,200 by judgment and award dated 29 June 2019.

Aggrieved by the allegedly inadequate assessment of compensation, the claimant preferred the present appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement under heads including loss of income, pain and suffering, medical expenses, transportation, special diet and attendant charges.

Whether the compensation awarded by the Motor Accident Claims Tribunal was inadequate and required enhancement to constitute just and fair compensation under the Motor Vehicles Act, 1988?

Whether the claimant was entitled to enhanced compensation under the heads of future loss of income, actual income loss, pain and suffering, medical expenses, and special diet, attendant charges and transportation, with interest?

The Court applied Section 173 of the Motor Vehicles Act, 1988, governing appeals against awards of the Motor Accident Claims Tribunal.

It reiterated that the Motor Vehicles Act is beneficial legislation and that compensation must be “just and fair,” assessed on the principles of fairness, reasonableness and equity.

The Tribunal must adopt a holistic, pragmatic and realistic approach, make a liberal rather than niggardly assessment, and endeavour to award just compensation notwithstanding the amount claimed by the claimant.

Compensation may include amounts for loss of income, pain, shock and suffering, medical expenses, and related incidental expenses such as special diet, attendant charges and transportation.

The High Court found that the Tribunal had erred in assessing the claimant’s compensation and that the award required suitable enhancement.

Applying the principle of just and fair compensation, the Court reassessed the damages as Rs. 21,70,022 for future loss of income, Rs. 1,00,000 for actual income loss, Rs. 2,00,000 for pain, shock and suffering, Rs. 2,25,200 for medical expenses, and Rs. 1,00,000 for special diet, attendant charges and transportation.

The total compensation was therefore calculated at Rs. 27,95,222. After deducting the Rs. 9,04,200 already awarded by the Tribunal, the Court determined that an additional amount of Rs. 18,91,022 was payable to the claimant.

The Court further considered interest at 9% per annum from the date of filing of the claim petition appropriate to meet the ends of justice.

The Insurance Company was directed to deposit the enhanced amount with interest before the concerned Tribunal within eight weeks of receiving the order.

The remaining directions of the Tribunal were maintained, and the Tribunal was directed to disburse the awarded amount to the claimant after due verification and compliance with applicable procedure, subject to deduction of court fees, if unpaid.