Compensation settlements in motor accident claims may be modified upon mediation agreement.

JUDGMENT

The appellant is the claimant in OP(MV) No.61 of 2017 on the file of the Motor Accidents Claims Tribunal, Taliparamba. The said claim petition was filed by the appellant claiming an amount of ₹8,00,000/- as compensation for the injuries sustained by her in a motor accident occurred on 18.11.2016. The tribunal awarded an amount of ₹6,00,000/- as compensation under different heads, directing the respondent insurer to deposit the said amount along with interest at the rate of 8% per annum from the date of filing the claim petition till realization. Being dissatisfied with the compensation awarded, the appellant has come up in appeal.

2. Today, when the matter is taken up, it is reported that the matter is settled in mediation. The mediator submitted a memorandum of agreement dated 16.02.2026 entered into between the parties along with report dated 19.02.2026. In the memorandum of agreement, it is stated that the claim of the appellant has been settled by the respondent insurer, agreeing to deposit a further amount of ₹95,000/- inclusive of all interest and costs by way of full and final settlement of all the claims of the appellant against the respondent MACA No.3106/2020 insurer, before the tribunal within a period of two months from the date of receipt of a copy of this judgment, failing which, the said amount will carry interest at the rate of 7% per annum from the date of default. 3. In the light of the memorandum of agreement dated

16.02.2026, the impugned award is modified by directing the respondent insurer to deposit an amount of ₹95,000 /- (Rupees ninety five thousand only) inclusive of all interest and costs by way of full and final settlement of all the claims of the appellant against the respondent insurer, before the tribunal within a period of two months from the date of receipt of a copy of this judgment, failing which, the said amount will carry interest at the rate of 7% per annum from the date of default. The appeal is disposed of, in terms of the memorandum of agreement as above. The memorandum of agreement will form part of the judgment.

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