Gujarat High Court
Civil LawInsurance Law

Motor accident compensation interest was enhanced from 7.5% to 9% per annum.

THE ORIENTAL INSURANCE CO. LTD. vs SHERSINH HAMIRSINH RAVAT (LHS OF DECD. PUSHPENDRASINH SHERSINH RAVAT)

Gujarat High CourtJUDGMENT: October 08, 20262 MIN READSOURCE JUDGMENT
Motor accident compensation interest was enhanced from 7.5% to 9% per annum.. THE ORIENTAL INSURANCE CO. LTD. vs SHERSINH HAMIRSINH RAVAT (LHS OF DECD. PUSHPENDRASINH SHERSINH RAVAT). Gujarat High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

Pushpendrasinh Shersinh Ravat, aged 20, died when the trailer in which he was working as a conductor and labourer overturned. His legal representatives claimed compensation, alleging that the driver had driven rashly and negligently; they asserted that the deceased earned ₹20,000 per month.

Source reference: pp. 2–3, paras. 5–5.2

The Motor Accident Claims Tribunal awarded ₹25,71,800 with interest at 7.5% per annum. The insurer appealed under Section 173 of the Motor Vehicles Act, 1988, challenging the award.

Source reference: p. 2, paras. 4, 5.3–5.4
02

Issues

Whether the Tribunal’s assessment of compensation, including dependency and non-pecuniary damages, required modification.

Source reference: pp. 4, 7, paras. 7, 9

Whether the interest rate awarded by the Tribunal should be altered.

Source reference: p. 7, para. 10.1
03

Law Applied

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against a Tribunal’s award; Sections 166 and 168 govern claims and the award of just compensation.

Source reference: pp. 2, 5, paras. 4, 8

The Court treated the Act as beneficial legislation and stated that compensation must be fair, reasonable and just, assessed pragmatically rather than niggardly.

Source reference: p. 3, para. 6

Relying on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, it referred to the conventional amounts for loss of estate and funeral expenses; relying on United India Insurance Co. Ltd. v. Satinder Kaur, (2021) 11 SCC 780, it addressed consortium.

Source reference: p. 4, para. 7

It also cited Rashmirekha Tripathi v. The Branch Manager (Legal Claims), Shriram General Insurance Co. Ltd., 2026 LiveLaw (SC) 654, including its discussion of V. Pathmavathi and Reshma Kumari, for the principle that compensation should be just and fair, based on the case’s circumstances.

Source reference: pp. 4–6, para. 8
04

Reasoning

The Court considered the deceased’s unmarried status and found that the Tribunal had not properly addressed prospective income and the relevant compensation components.

Source reference: p. 4, para. 7

It recalculated future dependency at ₹18,63,216, loss of estate and funeral expenses at ₹36,300, and consortium at ₹96,800, recording a total of ₹19,96,316.

Source reference: p. 6, para. 9

The judgment’s table then describes ₹25,71,800 as compensation to be “less[ed]” and records an additional amount of ₹5,75,484; those figures and labels are arithmetically inconsistent with the stated total, and the judgment does not resolve the inconsistency.

Source reference: p. 6, para. 9

The Court separately concluded that interest should be increased from 7.5% to 9% per annum.

Source reference: p. 7, para. 10.1
05

Holding

The appeal was allowed to the extent stated, and the Tribunal’s judgment was modified; interest was enhanced to 9% per annum from the date of filing the claim petition until realization.

If the insurer had deposited the entire compensation with accrued interest, the Tribunal was directed to refund any excess to the insurer and disburse the compensation to claimants 1 and 2 in equal proportions.

Source reference: p. 7, para. 10.2

The connected civil application was disposed of.

Source reference: p. 7, para. 10.4
06

Acts & Sections Cited

3 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19883

Gujarat High Court

Original Court PDF

THE ORIENTAL INSURANCE CO. LTD.vsSHERSINH HAMIRSINH RAVAT (LHS OF DECD. PUSHPENDRASINH SHERSINH RAVAT)

Gujarat High Court · October 08, 2026

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