Just compensation in motor accident claims includes future prospects and higher conventional damages, even beyond the amount claimed.

Motor accident compensation must be just, fair and reasonable, and future prospects may be added to the income of deceased self-employed or fixed-wage earners. The addition is not barred by the absence of permanent service; instead, the percentage is determined by age-based standardisation to reflect likely income growth. The Tribunal is not confined to the amount claimed in the application, because the statutory duty is to award just compensation. Conventional heads such as loss of consortium, loss of care and guidance, and funeral expenses were also held to require revision upward to reflect current standards.

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Issues: (i) Whether, in motor accident compensation cases, future prospects can be added to the income of a deceased who was self-employed or on fixed wages, and if so, on what basis; (ii) Whether the Claims Tribunal and appellate court are confined to the amount claimed in the application, and how compensation under conventional heads is to be assessed.

Issue (i): Whether, in motor accident compensation cases, future prospects can be added to the income of a deceased who was self-employed or on fixed wages, and if so, on what basis.

Analysis: The settled principle is that compensation must be just, fair, equitable and reasonable. The standardisation of future prospects in earlier precedent for salaried persons below 40 years was extended to self-employed persons and those on fixed wages. The Court clarified that income enhancement cannot be denied as a rigid rule merely because the deceased was not in permanent service. The applicable addition depends on age, with the percentage of enhancement varying across age groups to reflect probable income growth over time.

Conclusion: Future prospects are to be added even in the case of self-employed persons or persons on fixed wages, with the percentage of addition determined by age.

Issue (ii): Whether the Claims Tribunal and appellate court are confined to the amount claimed in the application, and how compensation under conventional heads is to be assessed.

Analysis: The statutory duty under the Motor Vehicles Act, 1988 is to award just compensation, and that duty is not curtailed by the quantum claimed in the application. The report forwarded under Section 158(6) is to be treated as an application under Section 166(4), and the Tribunal must build upon it to determine fair compensation. The Court also held that amounts under conventional heads had become outdated and needed revision, recognising higher sums for loss of consortium, loss of care and guidance, and funeral expenses.

Conclusion: The Tribunal and court can award compensation in excess of the amount claimed, and the conventional heads were entitled to enhancement.

Final Conclusion: The appeal succeeded and the compensation was reassessed upward on the basis of just compensation, including future prospects and enhanced conventional damages.

Ratio Decidendi: In motor accident claims, the duty is to award just compensation, which may exceed the amount claimed, and future prospects may be added to the income of self-employed or fixed-wage earners according to age-based standardisation.

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