False Implication of Vehicle and Effect on Insurance Claim

*False Implication of Vehicle and Effect on Insurance Claim*

In case of *New India Assurance Co. Ltd v. Saleem Khan Mewati [2026] GCtR 191 (Delhi)* insurance company in a case under MV Act, 1988 argued that vehicle has been falsely implicated, and that the driver has colluded in the process. In this case the insurance company did not settled the case within 30 days of filing of claim petition ; the order of MACT to direct insurance company to pay interest amount in addition to principal compensation amount was found to be justified and appeal of insurance company was dismissed. This judgment affirms the principle that when insurance company's employees had not settled the insurance claim within 30 days of filing of claim petition, then waiver from interest liability cannot be given by raising the ground that vehicle has been falsely implicated. It was also held that there is no illegality in granting an amount of Rs. *20 lacs towards pain and suffering* in addition to other heads of compensation.