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

The appellant–original claimant challenged the judgment and award dated 12 February 2025 passed by the Motor Accident Claims Tribunal, Ahmedabad Rural at Navrangpura, in Motor Accident Claim Petition No. 1843 of 2015, under Section 173 of the Motor Vehicles Act, 1988.

The claimant contended that the Tribunal had undervalued the compensation under heads including pain, shock and suffering, transportation, special diet, medical expenses, and loss of income.

The vehicle involvement, accident-related facts, and liability of the owner and insurer were not disputed by the Insurance Company.

The Tribunal had awarded Rs.2,05,500/-.

Whether the Tribunal had erred in assessing the compensation payable to the claimant under the Motor Vehicles Act, 1988.

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

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,” assessed on principles of fairness, reasonableness, equity, and realistic approximation.

The Tribunal and appellate court must endeavour to award just compensation, which should be liberal rather than niggardly, while remaining fair and reasonable and not being restricted by an unduly narrow or mechanical calculation.

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

Applying the principle of just and fair compensation, the Court reassessed the entitlement as follows: Rs.3,56,184/- for future loss of income, Rs.6,000/- for actual loss of income, Rs.20,000/- for pain, shock and suffering, Rs.20,000/- for medical expenses, and Rs.7,500/- for special diet, attendant charges and transportation, totalling Rs.4,09,684/-.

After deducting the Rs.2,05,500/- already awarded, the Court determined that an additional Rs.2,04,184/- was payable.

The Insurance Company was directed to deposit the enhanced compensation of Rs.2,04,184/- with interest at 8% per annum from the date of filing of the claim petition until realization, within eight weeks of receiving the order.

The remaining directions of the Tribunal were maintained.

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 payable.