The Karnataka High Court has observed that a 9% interest rate is more appropriate in accident cases involving death or serious injury, as it ensures fair compensation to victims. The observation came while hearing an appeal related to an accident that occurred in 2016 in Bengaluru.
Court's Ruling
Justice B. Veerappa, presiding over the case, stated that the current interest rate of 6% in such cases is inadequate. The court emphasized that the rate should reflect the economic realities and the need for just compensation.
Details of the Case
The appeal was filed by the insurance company challenging the award of the Motor Accidents Claims Tribunal. The accident involved a fatal injury, and the tribunal had granted compensation with 6% interest. The High Court, however, modified the interest rate to 9%.
Legal Precedents
The court referred to earlier Supreme Court judgments where 9% interest was deemed appropriate in cases of death or serious injury. The ruling aims to strike a balance between the interests of victims and insurers.
The decision is expected to impact future accident compensation claims in Karnataka.
