Inadequately assessed motor accident compensation must be enhanced to ensure just and fair compensation.

The appellant, the original claimant in a motor accident claim, challenged the judgment and award dated 19 July 2024 passed by the Motor Accident Claims Tribunal, Godhra, in Motor Accident Claim Petition No. 8 of 2022, under Section 173 of the Motor Vehicles Act, 1988.

The claimant contended that the Tribunal had inadequately assessed compensation under heads including loss of income, pain and suffering, medical and incidental expenses, special diet, transportation, and attendant charges.

The respondent-GSRTC did not dispute the factual aspects concerning the vehicle involved or the liability of the owner and insurer, and opposed the appeal on the ground that the Tribunal’s award was just and proper.

The Tribunal had awarded Rs. 2,39,643, leading the claimant to seek enhancement.

Whether the Tribunal had erred in assessing the claimant’s compensation and whether the award required enhancement under the principle of just and fair compensation.

Whether the claimant was entitled to additional compensation under the heads of future loss of income, actual loss of income, pain and suffering, special diet, attendant charges, and transportation, with applicable 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,” determined on principles of fairness, reasonableness, equity, and realistic approximation rather than a narrow or niggardly assessment.

The Tribunal is required to make an endeavour to award just compensation, even irrespective of the amount claimed, while considering the overall consequences of the accident, including the claimant’s physical and mental suffering and financial loss.

The Court found that the Tribunal had committed an error in assessing the compensation and that the award required suitable enhancement.

Applying the principle of holistic and realistic compensation, it reassessed the claimant’s entitlement as follows: Rs. 4,06,776 for future loss of income, Rs. 18,990 for actual loss of income, Rs. 20,000 for pain, shock and suffering, and Rs. 15,000 for special diet, attendant charges, and transportation.

The total compensation was therefore calculated at Rs. 4,60,766. After deducting the Rs. 2,39,643 already awarded by the Tribunal, the Court determined the additional amount payable as Rs. 2,21,123.

The Court considered this enhancement consistent with the statutory objective of granting fair and reasonable compensation to an injured claimant.

The opponents were directed to deposit the enhanced amount with interest, jointly and severally, before the concerned Tribunal within eight weeks of receiving the order.

The remaining directions of the Tribunal were confirmed.

The Tribunal was directed to disburse the entire awarded amount, with accrued interest, to the claimant through account-payee cheque, NEFT, or RTGS after due verification and compliance with procedure, subject to deduction of court fees, if applicable.