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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON’BLE SRI JUSTICE C.V.BHASKAR REDDY

M.A.C.M.A.No.592 of 2019

DATE: 30.01.2026

Between:

The Bajaj Allianz General Insurance Company Limited,

Rep. by its Manager, Yerawada, Pune.

…..Appellant

AND

Todsam Mahadev @ Madhav and two others.

….Respondents

JUDGMENT

This appeal, under Section 173 of the Motor Vehicles Act, 1988

is filed by the appellant-Insurance Company being aggrieved by the

judgment and decree dated 07.08.2018 passed in O.P.No.421 of

2013by the Chairman, Motor Accident Claims Tribunal-cum-

Principal District and Sessions Judge, Adilabad (for short, “the

Tribunal”) whereby compensation of Rs.3,00,000/- was awarded to

the claimants-respondents No.1 and 2 herein, with interest @ 9% per

annum from the date of petition till realization, for the death of their

daughter-Todsam Jyothi @ Todsam Divya, in a road accident.

2. The brief facts of the case are that on 08.01.2010 at about 8:00

p.m., the deceased Todsam Jyothi was proceeding in a 407 TATA van

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bearing No.MH.32.B.3926 driven by her father (Respondent No.1)

towards Kurli village from Adilabad and when they reached near

Hasnapur colony, a tractor bearing No.AP.1.T.3528 coming from the

opposite direction at high speed and in a rash and negligent manner

collided with the van. Due to the impact, the deceased and another

inmate fell down from the vehicle and died on the spot. Stating that

the deceased was a clever 6-year-old child and they had lost her

support and affection, the parents filed the claim petition seeking

compensation of Rs.3,00,000/- against the owner and insurer of the

van.

3. Before the Tribunal, owner of the van/respondent No.1

therein/respondent No.3 herein admitted ownership and insurance

coverage but denied the accident details. The insurance

company/Respondent No.2 therein/appellant herein filed a counter

denying liability, asserting that the driver did not possess a valid

driving license, the vehicle was overloaded with passengers in

violation of policy conditions, and the accident actually occurred due

to the negligence of the tractor driver. The Tribunal, on appreciation

of evidence, held that as the petition was filed under Section 163-A of

the Motor Vehicles Act, the claimants were not required to prove

negligence. It awarded compensation of Rs.3,00,000/- along with

interest at 9% per annum from the date of filing of the petition till

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realization. Challenging the said award, the insurance company filed

the present appeal.

4. Considered the submissions of learned counsel for the parties

and perused the record.

5. On the question of liability, the Tribunal found that the

insurance company failed to prove through the Road Transport

Authority or the Investigating Officer that the driver lacked a valid

license, especially since he was acquitted in the related criminal case.

This Court finds no ground to interfere with the Tribunal's finding

that the insurer is liable to indemnify the owner.

6. So far as assessment of compensation is concerned, the

Tribunal arrived at a total sum of Rs.3,00,000/- by assessing loss of

dependency and non-pecuniary damages. The evidence on record

justifies such an award.

7. Coming to the rate of Interest, this Court finds force in the

submission of the learned Standing Counsel for the Insurance

Company. The Hon’ble Supreme Court in the case of National

Insurance Company Ltd. vs. Mannat Johal and others, AIR 2019 SC 2079and in

several subsequent decisions held that the reasonable rate of interest

to be awarded in motor accident claim cases shall be 7.5% per

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annum. Therefore, the rate of interest awarded by the Tribunal at 9%

per annum is on the higher side and requires modification. Except for

the modification in the rate of interest, the award passed by the

Tribunal in all other respects is upheld as just and reasonable.

8. In the result, this appeal is partly allowed by reducing the rate

of interest awarded by the Tribunal from 9% per annum to 7.5% per

annum from the date of petition