Interest on motor accident compensation accrues from the date claimants file evidence, not from filing the claim petition.

On 9 May 2005, the deceased, Lakhiram Karmakar, was travelling as a pillion rider on motorcycle No. AS-06-D-8652 when it collided with truck No. ASW-0826 at Dibrugarh.

Dibrugarh P.S. Case No. 265/2005 was registered under Sections 279, 338 and 304-A of the IPC against the truck driver.

The truck was uninsured, whereas the motorcycle was insured with United India Insurance Co. Ltd.

The claimants—being the deceased’s wife and four children—filed motor accident compensation claims.

The learned Tribunal held that the accident resulted from rash and negligent driving of the motorcycle and awarded Rs. 8,90,200 with interest at 6% per annum from the date of filing of the claim petition.

The Insurance Company appealed, challenging the finding fastening liability upon it, relying on alleged contradictions in the evidence, and disputing interest from the date of filing of the claim petition.

Whether the Insurance Company could be directed to satisfy the compensation award in respect of an accident involving an insured motorcycle, notwithstanding the Tribunal’s finding that the motorcycle was driven rashly and negligently and the truck involved was uninsured?

Whether interest on the compensation should run from the date of filing of the claim petition or from the date on which the claimants filed their evidence?

Whether the Insurance Company should have the liberty to recover the amount paid from the driver and/or owner of the offending vehicle, if legally entitled to do so?

The Court applied the general principles governing motor accident compensation, including the requirement of proof of rash and negligent driving, the liability of an insurer in relation to an insured vehicle, and the insurer’s potential right to recover amounts paid from the driver or owner where such recovery is permissible in law.

The criminal case under Sections 279, 338 and 304-A IPC was treated as relevant background but not as conclusive proof that only the truck driver was negligent.

The Court also applied its discretion concerning the commencement of interest on the compensation award and modified the Tribunal’s direction so that interest would run from the date of filing of evidence by the claimants.

The Court noted that the Tribunal had relied on the evidence of the claimants and an eyewitness and had found that the motorcycle driver was driving rashly and negligently while attempting to overtake the truck.

The filing of a charge-sheet against the truck driver did not, by itself, establish that the motorcycle driver was free from negligence.

In view of the insured motorcycle and the circumstances of the claim, the Court did not disturb the direction requiring the appellant-Insurance Company to satisfy the award, while preserving its liberty to recover the amount from the driver and/or owner if permitted by law.

However, considering the substantial delay between filing of the claim petition and filing of the claimants’ evidence, and with the consent of the parties, the Court held it appropriate to shift the commencement of interest from the date of filing of the claim petition to the date of filing of evidence.

The compensation of Rs. 8,90,200 remained undisturbed, but it would carry interest at 6% per annum from the date of filing of evidence by the claimants, instead of from the date of filing of the claim petition.

The Insurance Company was granted liberty to recover the amount paid from the driver and/or owner of the offending vehicle, if so entitled in law.

The Rs. 25,000 deposited with 50% of the awarded amount before the High Court Registry was directed to be released to the claimants or their authorised representative upon identification, and the remaining amount was directed to be paid within six weeks, failing which the applicable directions would operate.