Motor accident compensation was enhanced by ₹30,000 after the claimant accepted the proposal and the insurer did not oppose it.

The claimant, an injured person, appealed under Section 173 of the Motor Vehicles Act, 1988, against the compensation awarded by the First Motor Accident Claims Tribunal, Jagatsinghpur, in a claim under Section 166.

The Tribunal had awarded Rs. 10,000 with simple interest at 7% per annum from the date of the claim application.

The insurer stated that it had produced a cheque in satisfaction of the award, but the claimant had not encashed it.

On appeal, the parties addressed the quantum of compensation: the claimant accepted the Court’s proposal for an additional Rs. 30,000, while the insurer left the matter to the Court’s discretion without disputing the proposal.

Whether the compensation awarded by the Tribunal should be enhanced in the claimant’s appeal.

Whether the insurer should be directed to pay the proposed additional compensation, having regard to the claimant’s acceptance and the insurer’s position.

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

The Court also took guidance from Taslim Parvin & Another v. (Smt.) Usha Devi & Another, 2018 (2) TAC 22 (SC), in considering the claimant’s acceptance of the Court’s proposal and the insurer’s decision not to dispute it; the judgment does not state a more specific rule from that decision.

The appeal challenged the quantum of compensation, and the Court considered the parties’ submissions on that issue.

It proposed an additional Rs. 30,000 as compensation; the claimant accepted the proposal, and the insurer did not oppose it, leaving the matter to the Court’s discretion.

In light of those positions and the guidance cited, the Court concluded that the interests of justice would be served by enhancing the compensation by that amount.

The insurer was permitted to take back any cheque deposited before the Tribunal that might have become invalid; any deposited enhanced compensation was to be disbursed to the claimant in cash.

The Court also directed that the proper court fee payable on the appeal be realised from the claimant.