Tuesday, September 2, 2025

Interest Liability of Insurance Company

Interest Liability of Insurance Company Explained

In UIIC v. Puja Namdeo Ghuge [2025] GCtR 1463 (Aurangabad, Bombay), insurance company raised the grounds like "non-involvement of vehicle", "amount being received from employer" seeking exoneration and reduction in the compensation amount. The appeal of the insurance company has been dismissed and compensation amount was enhanced directing insurance company to pay 9% interest on compensation amount, in addition to principal compensation amount.

In this case, insurance company did not offered appropriate amount of settlement within 30 days of filing of the case as was required under Motor Vehicles Act, 1988 and instead chose to contest the case and even preferred to continue the litigation by filing appeal.

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