Motor accident compensation must be assessed liberally and realistically to ensure just and fair recompense.

The appellant was the original claimant in Motor Accident Claim Petition No. 1845 of 2015 before the Motor Accident Claims Tribunal, Ahmedabad Rural at Navrangpura.

The claimant challenged the Tribunal’s judgment and award dated 12 February 2025 under Section 173 of the Motor Vehicles Act, 1988, contending that the compensation awarded was inadequate and that the Tribunal had failed to properly assess future loss of income, actual income loss, pain and suffering, medical expenses, special diet, attendant charges, and transportation expenses.

The insurer defended the Tribunal’s award as just and proper, while the liability arising from the accident was not disputed.

Whether the Tribunal had improperly assessed the claimant’s compensation arising from the motor accident and whether the award required enhancement?

Whether the claimant was entitled to enhanced compensation under the principle of just and fair compensation, together 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 a beneficial legislation and that compensation must be “just and fair,” determined on the principles of fairness, reasonableness, equity, and realistic approximation.

The Tribunal has a duty to endeavour to award just compensation, irrespective of the amount claimed, and the assessment should be liberal rather than niggardly while remaining reasonable and equitable.

No specific judicial precedent was cited in the judgment.

The High Court examined the Tribunal’s award and accepted the claimant’s contention that the compensation had been assessed inadequately.

Applying the beneficial and compensatory purpose of the Motor Vehicles Act, the Court reassessed the heads of compensation as follows: ₹3,56,184 for future loss of income, ₹6,000 for actual income loss, ₹20,000 for pain, shock and suffering, ₹33,000 for medical expenses, and ₹7,500 for special diet, attendant charges, and transportation, totaling ₹4,22,684.

After deducting the ₹2,18,500 already awarded by the Tribunal, the Court determined that an additional ₹2,04,184 was payable to the claimant.

The claimant was held entitled to enhanced compensation of ₹2,04,184, carrying interest at 8% per annum from the date of filing of the claim petition until realization.

The Insurance Company was directed to deposit the enhanced amount with 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, after verification and compliance with applicable procedure, subject to deduction of court fees if unpaid.