Gujarat HC: Dependents of victims in road accidents entitled to compensation under MACT

The Gujarat High Court has delivered a judgment for motor accident compensation claims. Justice Nisha M Thakore has ruled that in cases of death caused by road accidents, all dependent family members of the deceased are entitled to compensation under the head of loss of consortium.

The court clarified that consortium compensation is not limited to the surviving spouse but extends to every dependent family member who suffers emotional, relational, and affectionate loss due to the untimely death. This aligns with the principle already established by the Supreme Court, which the High Court has now made binding for all Motor Accident Claims Tribunals (MACTs) in Gujarat. Justice Thakore has directed the Registrar General of the high court to circulate this ruling to all MACTs across the state for strict compliance.

The judgment came in connection with a fatal road accident that occurred on 16 February 2020, in which a young man engaged in  vegetable trading lost his life. Following his death, his wife and dependents filed a claim before the MACT, Ahmedabad (Rural).

On 5 September 2024, the Tribunal directed Tata AIG General Insurance Company to pay ₹55,37,476 to the claimants as compensation. However, the insurance company challenged this decision by filing appeal in the high court, seeking to reduce the compensation amount.

After hearing both sides, Justice Thakore dismissed the appeal filed by the insurance company. Instead of reducing the award, the court increased the compensation by nearly ₹1.5 lakh, taking the total payable amount to ₹56,82,676.

The court accepted the argument raised on behalf of the dependents that they were also entitled to consortium compensation, which covers not only financial loss but also the invaluable loss of affection, warmth, companionship, and emotional support caused by the victim’s death.

The ruling sets a strong precedent for future motor accident claims in Gujarat, making it clear that:

All dependents, not just the widow or children, are entitled to consortium compensation.

MACTs must strictly follow the principle established by the Supreme Court when calculating compensation.

Emotional and relational losses are as significant as financial losses in determining fair compensation.

By reinforcing the humanitarian approach laid down by the Supreme Court, the Gujarat High Court has ensured that accident victims’ families are adequately compensated for both economic and non-economic damages.

Legal experts say this decision will serve as a guiding principle for all motor accident cases in the state, providing greater justice to grieving families.