Uttarakhand High Court Rules Compensation Represents Social Justice Beyond Financial Relief in Accident Case

The Uttarakhand High Court has declared that compensation represents more than just financial relief, but stands as a symbol of social justice. This observation came as the court dismissed an insurance company's appeal contesting what was termed an "excessive" award granted to a family of an accident victim in a 2024 case.

Justice Alok Mehra, presiding over a single bench, affirmed the Nainital District Court's decision to award Rs 53,93,600 to the deceased's family, deeming it both fair and justified.

The insurance company had previously challenged an order issued by the Motor Accident Claims Tribunal (MACT) in Nainital during November 2024. The tribunal had directed payment of Rs 53.93 lakh as compensation to the victim's family, with an additional 6 percent annual interest.

In their appeal, the insurance company argued that the compensation amount was excessive and lacked legal justification. However, the court rejected this stance.

In its ruling, the court emphasized that the Motor Vehicles Act constitutes welfare legislation designed to provide timely and adequate compensation to victims. The court noted that such compensation addresses the loss of love, affection, and family support, and found that the tribunal's decision was legally sound and well-balanced.

Justice Mehra highlighted that courts should adopt a liberal and humane approach when determining motor accident compensation cases.