Motor accident compensation must be just and fair, warranting enhancement where the Tribunal’s assessment is inadequate.

On 10 July 2004 at approximately 9:45 p.m., the claimant was travelling in Ambassador car No. GJ-3-AB-2972 on the Morvi–Rajkot Road. Truck No. GTY-7039, allegedly driven rashly and negligently by respondent No. 1, collided with the car; thereafter, rickshaw No. GJ-3-W-1115, approaching from behind, also collided with the car. The accident caused damage to the vehicle and bodily injuries to the occupants, who received treatment at Government Hospital, Morvi, and thereafter at Gondhia Hospital, Rajkot

The claimant in Motor Accident Claim Petition No. 539 of 2004 claimed Rs.4,00,000 towards damage to his Ambassador car. The Motor Accident Claims Tribunal, Surendranagar, by judgment and award dated 9 August 2012, awarded Rs.74,300. Aggrieved by the alleged inadequacy of the compensation, the claimant preferred the present appeal under Section 173 of the Motor Vehicles Act, 1988.

Whether the Tribunal had correctly assessed the compensation payable to the claimant for the losses arising from the motor accident?

Whether the claimant was entitled to enhancement of compensation under the principles of just, fair and reasonable compensation under the Motor Vehicles Act, 1988?

The Court applied Section 173 of the Motor Vehicles Act, 1988, governing appeals against awards of Motor Accident Claims Tribunals.

It reiterated that the Motor Vehicles Act is a beneficial legislation and that compensation must be “just,” fair, reasonable and equitable. Assessment must adopt a liberal, holistic and pragmatic approach, taking into account the losses sustained by the claimant, including loss of income, pain and suffering, medical expenses, special diet, attendant charges and transportation expenses. Although exact mathematical precision is not possible, the Tribunal must endeavour to restore the claimant, as far as money can, to the position existing before the accident.

The High Court found that the Tribunal had erred in assessing the compensation and had awarded an amount lower than that justified by the material on record.

Applying the principle of just and fair compensation, the Court reassessed the claim under separate heads: Rs.69,696 for future loss of income, Rs.9,000 for actual loss of income, Rs.15,000 for pain, shock and suffering, Rs.6,000 for medical expenses, and Rs.10,000 towards special diet, attendant charges and transportation. The total compensation was thereby determined at Rs.1,09,696. After deducting the Rs.74,300 already awarded by the Tribunal, the Court calculated an additional amount of Rs.35,396.

The Insurance Company was directed to deposit the enhanced amount with the concerned Tribunal within eight weeks of receiving the order. The Tribunal was directed to disburse the awarded amount, including accrued interest, to the claimant after due verification and compliance with procedure, subject to deduction of court fees if payable. All other directions of the Tribunal were continued, and the record was ordered to be returned.