Inadequate motor accident compensation warrants enhancement to ensure just compensation.

The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, against the Motor Accident Claims Tribunal, Bhuj’s award dated 30 November 2017 in Motor Accident Claim Petition No. 310 of 2002.

The dispute before the High Court concerned the adequacy of compensation; the underlying accident facts and the liability of the owner and insurer were not disputed. The Tribunal had awarded Rs. 1,02,500.

Whether the Tribunal’s compensation award was inadequate and required enhancement to provide just compensation.

Whether the enhanced compensation should carry interest, and at what rate and from what date.

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

Compensation under the Act must be “just and fair,” determined by a liberal, realistic, and holistic assessment of the loss sustained; the Tribunal must endeavour to award just compensation, even though exact arithmetical restoration for personal injury is not possible.

The Court found that the Tribunal had erred in assessing compensation and considered enhancement necessary.

It assessed Rs. 3,72,564 for future loss of income, Rs. 30,000 for pain, shock and suffering, Rs. 10,000 for medical expenses, and Rs. 15,000 for special diet, attendant charges, and transportation, making total compensation of Rs. 4,27,564. After deducting the Rs. 1,02,500 already awarded, it fixed the additional compensation at Rs. 3,25,064.

The Court directed the Insurance Company to deposit the enhanced amount of Rs. 3,25,064 with interest at 7.5% per annum from the date of filing the claim petition until realization, within eight weeks of receipt of the order.

The Tribunal was directed to disburse the amount lying with it, including accrued interest, subject to verification, due procedure, and deduction of any unpaid court fees; the remaining directions of the Tribunal were unchanged.