Saturday, September 20, 2025

Non-Settlement of Insurance Claim within 30 days and Interest Liability of Insurance Company

Non-Settlement of Insurance Claim within 30 days and Interest Liability of Insurance Company

In case of Hanumanagouda v. UIIC [2014] GCtR 6418 (SC), the insurance company had not settled the case in Lok Adalat within 30 days of receipt of notice and ultimately, insurance company was directed to pay interest amount from date of filing of case till date of actual payment, in addition to principal amount of compensation.

The case involved applicability of IMT 17 and involved a lorry as vehicle in which clerk was travelling. 

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