The Gujarat High Court has reaffirmed that illegally parked vehicles can be held fully responsible for fatal road accidents, while significantly enhancing compensation for the victim’s family. Dismissing the insurer’s appeal, the Court also allowed a cross-objection by the claimants, raising the total compensation to over ₹1.07 crore.
The judgment was delivered by Justice Hasmukh D. Suthar in a long-pending motor accident case arising from a 2016 road tragedy in Panchmahals district.
Background of the Case
The case stems from a fatal accident that occurred on the night of 2 September 2016. Jigneshkumar Kanayalal Parekh, a 35-year-old senior mechanical engineer, was riding his motorcycle towards Pavagadh when he collided with a tanker parked in the middle of a State Highway at Gopipura crossroads.
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According to the record, the tanker had been parked without reflectors, warning signals, or parking lights, despite it being night-time. The impact proved fatal, and Parekh died on the spot. His widow and other legal heirs later approached the Motor Accident Claims Tribunal (MACT), seeking compensation.
In September 2021, the Tribunal held the tanker driver solely negligent and awarded compensation of ₹97.07 lakh with 8% annual interest.
Insurance Company’s Appeal
Reliance General Insurance Company challenged the MACT award before the High Court, arguing that the deceased motorcyclist himself was negligent and responsible for the accident.
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However, during the hearing, the insurer did not seriously contest the Tribunal’s findings on negligence. After examining the record, the Court found no reason to disturb the conclusion that the stationary tanker was entirely at fault.
“The evidence clearly shows that the tanker was parked illegally and without any safety precautions on a public highway during night hours,” the Court observed.
Relying on earlier Supreme Court rulings, the High Court held that negligence was rightly fastened on the tanker driver alone and dismissed the insurance company’s appeal.
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Claimants Seek Higher Compensation
The deceased’s family, meanwhile, filed a cross-objection seeking enhancement of the compensation amount. They argued that the Tribunal had undervalued the deceased’s income and had not granted adequate amounts under various legal heads.
The Court examined salary slips and appointment records showing that Parekh was employed as a Senior Mechanical Engineer with a private company in Halol. After recalculating his income and deducting professional tax, the Court reassessed his monthly earnings at ₹48,624.
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Court’s Observations on Compensation
Taking note of the deceased’s permanent employment, the Court applied a 50% addition for future prospects, in line with Supreme Court guidelines. After deducting personal expenses and applying the appropriate multiplier for age, the Court recalculated the loss of dependency.
“The Tribunal has awarded compensation on the lower side and the same deserves enhancement to ensure just compensation,” Justice Suthar noted.
The Court also enhanced amounts under conventional heads such as loss of estate, funeral expenses, and consortium. Since the deceased left behind four dependents, parental and filial consortium was revised substantially.
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Final Decision
In its final order, the High Court dismissed the insurer’s appeal and partly allowed the claimants’ cross-objection. The total compensation was enhanced from ₹97,07,248 to ₹1,07,32,684, resulting in an additional ₹10.25 lakh payable to the family.
The insurance company was directed to deposit the entire enhanced amount along with applicable interest within four weeks. The Tribunal was instructed to disburse the compensation to the claimants through proper banking channels after due verification.
With this, the Court brought the matter to a close, modifying the original award to ensure fair and lawful compensation to the deceased’s family.
Case Title: Reliance General Insurance Co. Ltd. vs Shitalben wd/o Jigneshkumar Parekh & Ors.
