Tribunals must award just compensation by properly assessing all proven injury-related losses.

The appellant–claimant preferred a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging 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. 1844 of 2015.

The claimant contended that the Tribunal had inadequately assessed compensation under various heads, including future loss of income, actual loss of income, pain and suffering, medical expenses, transportation, special diet, and attendant charges.

The vehicle involvement in the accident and the liability of the owner and insurer were not disputed by the Insurance Company.

The Tribunal had awarded Rs.1,85,200, which the claimant sought to have enhanced.

Whether the Tribunal had erred in assessing the claimant’s compensation under the applicable heads of damages?

Whether the claimant was entitled to enhancement of compensation in accordance with 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 a Motor Accident Claims Tribunal.

It reiterated that the Motor Vehicles Act is a beneficial legislation and that compensation must be “just,” fair, reasonable, and equitable, based on a holistic and pragmatic assessment of the losses suffered by the injured claimant.

The Court further held that compensation should be assessed liberally rather than niggardly, while remaining within the bounds of realistic approximation, and that the Tribunal has a duty to award just compensation irrespective of the amount claimed.

The Court examined the Tribunal’s award and concluded that the compensation had not been properly assessed and therefore required enhancement.

Applying the principle of just compensation, the Court reassessed the claimant’s entitlement at Rs.2,13,624 for future loss of income, Rs.6,000 for actual loss of income, Rs.20,000 for pain, shock and suffering, Rs.67,000 for medical expenses, and Rs.7,500 towards special diet, attendant charges, and transportation, totalling Rs.3,14,124.

After deducting the Rs.1,85,200 already awarded by the Tribunal, the Court determined that an additional sum of Rs.1,28,924 was payable.

The Court enhanced the compensation by Rs.1,28,924, with interest at 8% per annum from the date of filing of the claim petition until realization.

The Insurance Company was directed to deposit the enhanced amount before the concerned Tribunal within eight weeks from receipt of the order.

The remaining directions of the Tribunal were maintained, and the Tribunal was directed to disburse the awarded amount, including accrued interest, to the claimant after due verification and compliance with applicable procedure.