Motor accident compensation must be enhanced when the Tribunal’s assessment fails to provide just compensation.

On 8 June 2002, the claimant was driving a jeep while travelling with office staff to repair a GEB line. Near Rabdal village, a trailer allegedly driven rashly and negligently collided with the jeep, causing the claimant grievous injuries

The claimant sought compensation under Section 166 of the Motor Vehicles Act, 1988. In this appeal under Section 173, he challenged the Tribunal’s award dated 9 October 2013, contending that the compensation was inadequate

1. Whether the Tribunal’s assessment of compensation for the claimant’s injuries was inadequate and required enhancement

2. If so, what enhanced compensation and interest should be awarded

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, against an award on a claim under Section 166

The Court treated the Motor Vehicles Act as beneficial legislation and stated that compensation must be just, fair, reasonable, and equitable. Its assessment should take a holistic and pragmatic view of the loss, and should be liberal rather than niggardly, while remaining just. No specific precedent was cited.

Having considered the parties’ submissions and reviewed the Tribunal record and award, the Court concluded that the Tribunal had erred in assessing compensation and that enhancement was warranted

It assessed compensation at Rs. 6,15,758 for future loss of income, Rs. 61,524 for leave without pay, Rs. 50,000 for pain, shock and suffering, and Rs. 20,000 for nutrition, food and transportation, totalling Rs. 7,47,282. After deducting the Rs. 35,000 already awarded, it fixed the additional compensation at Rs. 7,12,282

The Insurance Company was directed to deposit the enhanced amount with interest before the Tribunal within eight weeks of receiving the order. The remaining directions of the Tribunal were maintained, and the Tribunal was directed to disburse the amount in accordance with the order, subject to applicable court fees.