NATIONAL INSURANCE CO. LTD Vs. RACHNA RAJPAL

JUDGEMENT

(1.) HEARD the parties. The Insurance Company has preferred the present appeal under Section 173 of the Motor Vehicles Act, 1988 against the impugned judgment and award dated 7th September, 2002 passed in Claim Case No. 143 of 1996, whereby the Motor Vehicles Claims Tribunal, Koderma has directed the insurer to indemnify the liability of the owner of the mini bus (BR-13-9926) and pay the compensation amount of Rs. 3,92,112/- with interest @ 12 per cent per annum from the date of filing of claim case till realisation to the claimants within a month and failing which to pay with enhanced rate of interest at 18 per cent.

(2.) THE Counsel for the appellant submitted that in calculating the compensation amount, not only annual dependency was wrongly fixed, a wrong multiplier was also used. It was further submitted that the insurer be given liberty to recover the compensation amount paid to the claimants from the owner of the vehicle for the reason that the driver had no valid driving licence at the time of accident and the rate of interest granted by the Tribunal be also reduced.

(3.) SO far as the; rate of interest granted by the Tribunal is concerned, it certainly requires modification by this Court and on the ratio of the decision of the Apex Court in The New India Assurance Co. Ltd. v. Kaushnuma Begum I (2001) ACC 151 (SC) : 2001 (1) J.L.J.R. 322, it is reduced to 9 per cent per annum payable from the date of filing of the claim case till realisation.