Motor Accident Interest Runs From Claim Date Absent Special Reasons

The Gujarat High Court has held that interest on motor-accident compensation ordinarily runs from the date of the claim petition and may be withheld only for recorded special reasons.

In the appeal decided on 8 October 2026, the Court increased compensation by ₹277,432, taking the total award to ₹619,460. It directed payment of 9% annual interest from the filing date and required the insurer to deposit the amount within 12 weeks.

The Court said delay connected with service or ordinary procedure did not, without more, justify depriving the claimant of interest. The ruling treats interest as part of effective compensation for the period during which a claimant is kept out of the awarded money.