Interest for Compensation under MV Act, 1988 Answered

Interest for Compensation under MV Act, 1988 Answered

"It is evident that even though Section 171 of Motor Vehicles Act, 1988 gives a discretion to the learned Tribunal to grant interest on compensation, unlike Section 34 of the Code of Civil Procedure, 1908 which prescribes that interest, except in commercial matters, would not exceed 6% p.a., neither any fixed rate of interest has been prescribed nor has any ceiling on the rate at which interest can be granted by the learned Tribunal under the MV Act, 1908 has been provided. It is, therefore, always incumbent for the learned Tribunal to award interest at a rate which is deemed appropriate in the facts of each case".- NICL v. Yad Ram [2023] GCtR 817 (Delhi)

MV Act, 1988, Compensation and Pension : HC Enhances the Compensation Amount

 MV Act, 1988, Pension and Compensation : HC Enhances Compensation Amount

In a recent decision, compensation amount under MV Act, 1988 has been enhanced.

In Jaymata Kachari v Future General India Insurance Co. Ltd [2024] GCtR 181 (Gauhati), the Bench of Hon. J. Malasri Nandi has held that "family pension is earned by an employee for the benefit of his family in the form of his contribution in the service in terms of the service conditions receivable by the heirs after his death. The legal heirs received family pension even otherwise than the accidental death. There is no co-relation between the two and therefore, the family pension amount paid to the family cannot be deducted while calculating the compensation award to the claimant."

Finally, compensation amount has been enhanced.

Written by 

Vishal

Delhi

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