Injury compensation must be enhanced when the Tribunal’s assessment fails to provide just and fair compensation.

Facts

On 2 February 2009, the claimant was riding a motorcycle with his nephew when a tempo driven by respondent No. 1 allegedly struck the motorcycle, causing the claimant serious injuries.

Source reference: p. 1, para. 2.1

The claimant sought compensation under Section 166 of the Motor Vehicles Act, 1988.

Source reference: p. 1, para. 2.1

The Motor Accident Claims Tribunal, Anand, awarded Rs. 2,14,806 with interest at 9% per annum.

Source reference: p. 1, paras. 1, 2.2–2.3

The claimant appealed, contending that the compensation was inadequate.

Source reference: pp. 2–3, paras. 4–4.1

Issues

1. Whether the Tribunal’s assessment of compensation was inadequate and required enhancement to provide just compensation.

Source reference: pp. 2–4, paras. 4, 6.1–6.2

2. Whether the claimant was entitled to interest on the enhanced compensation and what consequential directions should be made.

Source reference: p. 5, paras. 7–8.4

Law Applied

Section 166 of the Motor Vehicles Act, 1988 provides the basis for a claim for compensation arising from a motor vehicle accident, while Section 173 provides for an appeal against an award of the Claims Tribunal.

Source reference: no citation

The Court applied the principle that compensation under the Motor Vehicles Act must be just and fair, assessed on a liberal and realistic basis with regard to the loss sustained; the Tribunal must endeavour to award just compensation, even though exact arithmetical restoration of the pre-accident position is not possible.

Source reference: pp. 3–4, paras. 6–6.1

No precedent was cited.

Source reference: no citation

Reasoning

On reviewing the record and the Tribunal’s award, the Court concluded that the Tribunal had erred in assessing compensation and that enhancement was warranted.

Source reference: p. 4, para. 6.1

It recalculated compensation for future loss of income, loss of amenities, pain and suffering, medical expenses, and special diet, attendant charges, and transportation, totalling Rs. 6,82,106.

Source reference: p. 4, para. 6.2

After deducting 10% for negligence, it arrived at Rs. 6,13,895 and, after crediting the Rs. 2,14,806 already awarded, determined the additional amount payable to be Rs. 3,99,089.

Source reference: p. 4, para. 6.2

Holding

The Court allowed the appeal and modified the Tribunal’s award, holding that the claimant was entitled to an additional Rs. 3,99,089, with interest at 9% per annum from the date of the claim petition until realization.

The Insurance Company was directed to deposit the enhanced amount and interest before the Tribunal within eight weeks; the Tribunal was directed to disburse the amount in accordance with the judgment, subject to applicable court fees.

Source reference: p. 5, paras. 8.2–8.4