The Delhi High Court directed the Oriental Insurance Company to pay interest on compensation from the date of filing to the realization of compensation as directed by the Tribunal as the insurance company failed to submit material to challenge the interest rate fixed.
United India Insurance Co Ltd, the appellant challenged the Award passed by the Motor Accidents Claims Tribunal-02, Delhi (‘Tribunal’) in MAC Petition titled Smt. Sonia & Ors. v. Sh. Satish Kumar & Ors.
The Claim Petition was registered on the Detailed Accident Report (‘DAR’) filed by the police corresponding to the investigation carried out in FIR No. 1484/15 under Sections 279/304A Indian Penal Code, 1860 registered at PS Narela.
As per the DAR, on 21.11.2015, the deceased-Arun Kumar was going on his motorcycle and at about 1:15 pm, when he reached Singhu Border Road in front of the Deepak Apartments, Narela, Delhi, one Maruti Van bearing registration no. HR-55-L-6792 (‘Offending Vehicle’), which was being driven at high speed and in a rash and negligent manner, came and hit his motorcycle.
As a result of the accident, the deceased fell from his motorcycle and he and his motorcycle came under the Offending Vehicle. The deceased was rushed to the SRHC Hospital, Narela, Delhi, where he was medically examined and was declared as brought dead.
The Tribunal, by way of the Impugned Award, has held that the deceased sustained fatal injuries in the road accident due to the Offending Vehicle being driven in a rash and negligent manner. The Tribunal awarded Rs.69,56,000/- along with interest at the rate of 9% per annum with effect from the date of the filing of the petition, that is 28.01.2016, till the date of its realization, in favour of the Legal Representatives of the deceased.
The Insurance Company challenged the rate of interest awarded in favour of the claimants. The counsel for the Insurance Company submitted that the same is excessive and should not be more than 6% per annum.
The Tribunal has directed the Insurance Company to pay the compensation along with interest at the rate of interest of 9% from the date of the filing of the Claim Petitions, that is, 28.01.2016 till the date of realization of the compensation. Though the Insurance Company challenges the same to be exorbitant, no material has been placed on record in support of this challenge.
It was noticed that the date of the accident was 21.11.2015. The Award was passed on 05.02.2019. The single bench of Justice Navin Chawla found the rate of interest awarded by the Tribunal to be reasonable and held that,
“ As the compensation amount would now stand enhanced, the Insurance Company shall deposit the remaining and the enhanced amount along with interest accrued thereon at the rate and for the period as stipulated in the Impugned Award, with the learned Tribunal within eight weeks from today. While depositing the amount, the Insurance Company shall also file with the learned Tribunal, the detailed calculation of the same. In case of any challenge by the claimants to the amount so deposited, the learned Tribunal shall determine the same.”
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