Motor accident tribunals may award just compensation exceeding the amount claimed.

The claimant was injured when an Ambassador car struck him at Alisha Chhaka, Puri, on 7 May 2000.

After a charge sheet was filed against the driver, the claimant sought compensation.

The Motor Accident Claims Tribunal awarded ₹3,42,000 with simple interest at 6% per annum from the date the claim was filed, 22 June 2000.

The insurer appealed, arguing that Section 64VB of the Insurance Act had not been complied with and that the award exceeded the claimant’s claim of ₹1,00,000.

1. Whether the insurer could avoid liability by relying on alleged non-compliance with Section 64VB of the Insurance Act, 1938

2. Whether the Tribunal erred by awarding compensation in excess of the amount claimed

3. Whether, in light of the parties’ positions before the Court, the compensation should be modified as a full and final settlement

Section 64VB of the Insurance Act, 1938 provides that an insurer may not assume a risk unless the premium is received in advance; however, the insurer must plead and establish the factual basis for relying on that provision through admissible evidence.

Under the Motor Vehicles Act, the Tribunal must award just compensation, which is not necessarily limited to the amount claimed.

The Court also referred to *Taslim Parvin & Another v. (Smt.) Usha Devi & Another*, 2018(2) TAC 22 (SC), in considering the resolution of the compensation dispute.

The insurer had issued a policy covering the date of the accident, and the seizure list showed that the policy was valid from 29 March 2000 to 28 March 2001.

The insurer had also adduced no evidence before the Tribunal to establish non-compliance with Section 64VB; its challenge on that ground therefore failed.

The Court likewise rejected the argument that the award was unlawful merely because it exceeded the ₹1,00,000 claimed, reasoning that the Tribunal was required to award just compensation.

During the appeal, the Court proposed reducing the award to ₹2,50,000 with interest; the claimant accepted the proposal, while the insurer left the matter to the Court’s discretion.

It directed the insurer to pay the modified amount within eight weeks; upon deposit, the amount is to be disbursed to the claimant in accordance with the Tribunal’s award, and the statutory deposit with accrued interest is to be refunded upon proof of deposit.