Under-assessed motor accident compensation must be enhanced to ensure just and fair compensation.

The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, against the Motor Accident Claims Tribunal, Palanpur’s judgment and award dated 23 September 2017 in Motor Accident Claim Petition No. 47 of 2013.

The vehicle-related facts and the liability of the owner and insurer were not disputed in the appeal.

The claimant argued that the Tribunal had under-assessed compensation, including for pain and suffering, transportation, special diet and medical expenses; the insurer maintained that the award was just and proper.

Whether the Tribunal’s assessment of compensation required enhancement to provide just and fair compensation to the claimant.

If so, what enhanced amount and interest should be awarded.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of a Claims Tribunal.

Compensation under the Motor Vehicles Act must be just and fair, assessed on a liberal and realistic basis, and aimed—so far as money can—to address the loss sustained by the injured claimant. The Tribunal must endeavour to award just compensation, irrespective of the amount claimed.

The Court accepted that the Tribunal had erred in assessing compensation and concluded that enhancement was warranted.

It recalculated the compensation as Rs. 14,09,500, comprising future loss of income, loss of actual income, pain, shock and suffering, medical expenses, and special diet, attendant charges and transportation. After deducting the Rs. 5,53,500 already awarded, it determined that an additional Rs. 8,56,000 was payable.

The insurer was directed to deposit the enhanced compensation of Rs. 8,56,000, with interest at 9% per annum from the date of the claim petition until realization, before the Tribunal within eight weeks of receiving the order; the Tribunal’s remaining directions were maintained.

The Tribunal was directed to disburse the awarded amount, with accrued interest, to the claimant after verification and to deduct any unpaid court fees in accordance with law.