Gujarat High Court raises compensation to ₹1 cr+ in 2016 fatal accident case

Gujarat High Court has significantly enhanced the compensation awarded to the widow and legal heirs of Jigneshkumar Parekh, a 35-year-old senior mechanical engineer who died in a road accident in 2016, directing the insurance company to pay over ₹1.07 crore along with interest.

The accident occurred on a state highway while Parekh was riding his motorcycle to Pavagadh. According to the details, Parekh was driving on the correct side of the road when his vehicle rammed into a tanker that was illegally parked in the middle of the road at night. The tanker had no reflectors on its rear, no precautionary signals, and its parking lights were off, making it invisible to the motorcyclist. Parekh succumbed to his injuries on the spot.

The Motor Accident Claims Tribunal at Halol, in its order dated September 3, 2021, had initially awarded Rs 97,07,248 to the claimants with 8% annual interest, holding Reliance General Insurance Company Ltd liable. The insurance company appealed against the tribunal's order, contending that the accident was caused by Parekh's rash and negligent driving. However, the claimants filed cross-objections seeking enhancement of the compensation.

A single bench of the Gujarat High Court rejected the insurance company's negligence plea and reassessed the award. The court increased the future loss of dependency from ₹96.37 lakh to ₹1.05 crore. The amount for loss of consortium was raised from Rs 40,000 to Rs 1.93 lakh, with similar enhancements under heads of funeral expenses and loss of estate.

Parekh, employed as a senior mechanical engineer at a private company in GIDC, Halol, was earning a gross salary of Rs 55,000 per month.The high court directed Reliance General Insurance Company Ltd to deposit the enhanced compensation amount of Rs 1,07,32,684, along with the accrued interest as per the tribunal's order, within four weeks.