In a notable ruling reinforcing the social purpose of compensation under the Motor Vehicles Act, the Uttarakhand High Court has observed that compensation is not merely a financial relief but “a symbol of social justice.”
Justice Alok Mehra, sitting singly, dismissed an appeal filed by an insurance company challenging a compensation award granted by the Motor Accident Claims Tribunal (MACT), Nainital. The company had termed the compensation amount “excessive and legally unjustified.”
The case arose from a 2024 motor accident in which the deceased’s family was awarded ₹53,93,600, along with 6 percent annual interest, by the Nainital MACT. The insurance company contested the order before the High Court, seeking a reduction.
Upholding the tribunal’s order, the Court ruled that the compensation determined was fair and well-balanced. Justice Mehra highlighted that the Motor Vehicles Act is “a welfare legislation” intended to ensure prompt and adequate relief to victims of road accidents.
The judgment stated that compensation must account not only for pecuniary loss but also for the “loss of love, affection, and family support.” The Court emphasised that a liberal and humane interpretation should guide compensation cases, adding that such relief serves as “a recognition of the human cost of negligence, not a mere financial adjustment.”
With this, the High Court affirmed the MACT’s decision and reiterated the judiciary’s role in ensuring that accident victims and their families receive justice grounded in compassion and equity.
