Allahabad HC says courts can raise accident claim awards

The Allahabad High Court has held that an appellate court can enhance compensation awarded in a motor accident claim even when the victims or their dependants have not filed a separate appeal or cross-objection, provided the insurer has challenged the quantum of compensation.

Justice Prashant Kumar of the Lucknow bench of the court on Wednesday observed that the Motor Vehicles Act is beneficial legislation and courts must ensure that victims and their dependants receive just and fair compensation in accordance with law.

The court observed while dismissing an appeal filed by the National Insurance Company Ltd against an award of the Faizabad Motor Accident Claims Tribunal. The tribunal had awarded Rs 7.20 lakh to the family of one Sabhajeet Tadmali. The high court enhanced the compensation to Rs 11,43,565 and retained interest at 7 per cent per annum.

The accident took place on November 16, 2017, when Tadmali was walking near Bariyawan crossing in Ambedkar Nagar. An SUV allegedly hit him, leaving him seriously injured. He died during treatment. His family had sought compensation of Rs 49.70 lakh.

The insurance company argued that the vehicle had been stolen before the accident and was not in the possession of its owner or driver at the relevant time. It also questioned the driver’s identity, pointing to a discrepancy in his name in the chargesheet and driving licence records.

Rejecting the theft plea, the court noted that the vehicle owner had neither lodged an FIR nor produced any cogent evidence to establish that the SUV had been stolen before the accident. The court also held that the discrepancy in the driver’s name was insufficient to disbelieve the prosecution and claimants’ case.

On the deceased’s age, the court held that the age recorded in Aadhaar could not be treated as conclusive proof of his date of birth. The family register showed his year of birth as 1967, though the exact date and month were unavailable.

The court, therefore, treated him as 50 years old at the time of the accident and applied a multiplier of 13.

The high court also increased the deceased’s monthly income from Rs 5,000, as assessed by the tribunal, to Rs 7,400.46, corresponding to the minimum wage applicable to an unskilled worker. It further awarded a consortium of Rs 48,400 each to the deceased’s wife and two children, the order stated.

The court said technical considerations should not stand in the way of ensuring just compensation to accident victims and their dependants, the order said.