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Gujarat High Court Enhances Compensation in Motor Accident Claim

LAW FINDER NEWS NETWORK | January 8, 2026 at 3:52 PM
Gujarat High Court Enhances Compensation in Motor Accident Claim

Legal Heirs of Deceased Nileshbhai Vasant to Receive Enhanced Compensation of Rs. 45.57 Lakh


In a significant development, the Gujarat High Court has enhanced the compensation awarded to the legal heirs of the late Nileshbhai Mahendrabhai Vasant, who was involved in a tragic motor vehicle accident in 2011. The court has increased the compensation amount from Rs. 41,05,240 to Rs. 45,57,739, taking into account additional medical expenses, loss of consortium, and other related charges.


The accident occurred on April 1, 2011, when the deceased was traveling to Balotara to attend a Horse Fair. The vehicle, driven by Jigar Babubhai Shah, lost control and overturned after a sudden brake application due to an oncoming ST Bus. Nileshbhai suffered severe injuries and succumbed on February 28, 2012, after a prolonged treatment.


Initially, the Motor Accident Claims Tribunal had awarded a compensation of Rs. 41,05,240. Dissatisfied with the assessment, the claimants, represented by Advocate Vishal C. Mehta, appealed for an enhancement of compensation, citing unconsidered medical bills and inadequate compensation under the head of loss of consortium.


The High Court, presided over by Justice Hasmukh D. Suthar, scrutinized the evidence, including medical bills and the Supreme Court's guidelines in the landmark case National Insurance Company Ltd. v. Pranay Shethi (2017). The court found merit in the claimants' appeal, particularly noting that medical expenses documented in Exhibits 71 and 72 were not fully considered by the Tribunal.


The court awarded Rs. 2,52,899 for medical expenses and Rs. 50,000 for attendant and transportation charges. Furthermore, the compensation for loss of consortium was significantly enhanced from Rs. 44,000 to Rs. 1,93,600, acknowledging the deceased's four dependents.


Justice Suthar emphasized that compensation under the Motor Vehicles Act is intended to cover actual losses and not to serve as a windfall. Thus, any amount already paid by third parties, such as charitable trusts, was not included unless justified with evidence.


The respondents have been directed to deposit the reassessed compensation amount with the Tribunal within four weeks. The Tribunal will then disburse the amount to the claimants after deducting court fees and following due procedure.


This judgment underscores the judiciary's commitment to ensuring fair compensation for victims of motor vehicle accidents, aligning with principles set by the Supreme Court to provide just and adequate relief to the aggrieved parties.


Bottom Line:

Motor Vehicles Act, 1988 - Compensation reassessment in motor accident claim - Enhancement of compensation considering medical expenses, loss of consortium, attendant and transportation charges, and other heads.


Statutory provision(s): Motor Vehicles Act, 1988 Sections 173, 166


Lh of Decd Nileshbhai Mahendrabhai Vasant v. Jigar Babubhai Shah, (Gujarat) : Law Finder Doc Id # 2836505

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