Supreme court: Motor accident claim tribunal must give interest on future prospect while granting compensation for motor accident

 In fact, it is due to the repudiation of or refusal to consider the claim that the claimants are driven to the Tribunal. When the matter is pending before the Tribunal or in appeal before the higher forums, the claimants are deprived of the compensation for future prospects. If they are paid in time, it could be utilized by the claimants and on failure, the loss of dependency would force the claimants to source their livelihood from elsewhere. This is sought to be compensated at least minimally by award of interest, which oftener them ever is nominal also since only simple interest is awarded. If the amounts were disbursed to the claimants on a rough calculation, on intimation of the accident to the Insurance Company, subject to the award of the Tribunal, necessarily there would not have been any interest liability atleast to the extent of the disbursement made. {Para 11}

 IN THE SUPREME COURT OF INDIA

Special Leave Petition (C) Nos. 11340 of 2020 and 22136 of 2024

Decided On: 14.07.2025

The Oriental Insurance Co. Ltd. Vs. Niru and Ors.

Hon'ble Judges/Coram:

Sudhanshu Dhulia and K. Vinod Chandran, JJ.

Author: K. Vinod Chandran, J.

Citation:  MANU/SC/0894/2025,2025 INSC 822

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Bombay HC: Motor accident claim tribunal should grant interest on future prospect from the date of filing of the claim petition

 This Court has held in the case of Kalpana Madhu Gavali [supra] that interest on future prospects should not be paid. However, I have not applied the said judgment for the following reasons :

i] The Hon'ble Supreme Court in the various judgments, noted in para no.10 above, has granted interest on the future prospects and the same is not granted in exercise of powers under Article 142 of the Constitution of India.

ii] The entire compensation is computed based on loss of future income which includes future prospect.

iii] The compensation becomes payable from the date of filing of the claim petition and the interest is awarded by the tribunal from the date of filing of claim petition. The claim petition may be adjudicated within one year or may take 20 years up till the appellate stage. But, the amount becomes payable from the date of filing of the claim petition, as such, the interest is granted from the date of claim petition till it's realization. {Para 11}

12. The Hon'ble Supreme Court has consistently granted interest on future prospect from the date of filing of the claim petition. As such, the argument of the Insurance Company on that interest should not be granted on future prospect is rejected.

 IN THE HIGH COURT OF BOMBAY (AURANGABAD BENCH)

First Appeal No. 401 of 2014

Decided On: 01.10.2024

IFFCO-Tokio General Insurance Co. Ltd. Vs. Suvarna and Ors.

Hon'ble Judges/Coram:

Arun R. Pedneker, J.

Citation:  MANU/MH/6153/2024,2024:BHC-AUG:23391.

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