High Court reassesses Tribunal's award, granting over ?10 lakh additional compensation to claimants in Reliance General Insurance case
In a significant judgment passed on January 7, 2026, the Gujarat High Court has increased the compensation awarded to the claimants in a motor vehicle accident case involving the death of Jigneshkumar Kanayalal Parekh. The case, titled Reliance General Ins Co Ltd v. Shitalben & Ors., was adjudicated by Justice Hasmukh D. Suthar.
The accident occurred on September 2, 2016, when the deceased, Jigneshkumar Parekh, collided with a stationary tanker parked unlawfully on a highway. The Motor Accident Claims Tribunal initially awarded a compensation of ?97,07,248 to the claimants, which included interest. The insurance company appealed this decision, challenging the finding of negligence solely attributed to the tanker driver.
However, the High Court upheld the Tribunal's decision, confirming the sole negligence of the tanker driver. The High Court dismissed the insurance company's appeal, citing precedents from the Supreme Court that supported the Tribunal's findings.
Additionally, the claimants filed cross-objections seeking an increase in the compensation amount. The High Court reassessed the compensation by considering the deceased's income, future prospects, and dependency. The court applied a 50% enhancement for future prospects and a multiplier of 16, resulting in an increased compensation amount.
The final compensation awarded by the High Court was Rs. 1,07,32,684, which included additional amounts for future loss of dependency, loss of consortium, funeral expenses, and loss of estate. This marked a substantial enhancement of ?10,25,436 from the original amount awarded by the Tribunal.
Justice Suthar emphasized that compensation could exceed the amount originally claimed if evidence justified a higher award. The judgment cited several Supreme Court decisions, including Nagappa v. Gurudayal Singh, which support the principle that courts can award more than the claimed amount when warranted by evidence.
The insurance company is directed to deposit the enhanced compensation within four weeks. The Tribunal will disburse the amount to the claimants after proper verification, ensuring the award reaches those affected by the tragic accident.
This judgment reinforces the judiciary's commitment to ensuring fair compensation in motor accident cases, considering all relevant factors to provide just relief to victims' families.
Bottom Line:
Motor Vehicles Act, 1988 - Tribunal's award of compensation for death in motor vehicle accident reassessed and enhanced by High Court based on evidence, including income and dependency of the deceased, future prospects, and proper application of multiplier.
Statutory Provision(s): Motor Vehicles Act, 1988 Section 173, Motor Vehicles Act, 1988 Section 166
Reliance General Ins Co Ltd v. Shitalben, (Gujarat) : Law Finder Doc id # 2841202
