In Brief
A widow and two minor children of a man killed in a 1995 motor accident sought compensation from an insurance company. The case took 22 years to resolve. The High Court awarded compensation of Rs. 76.63 lakhs at 9% interest from the claim filing date. The insurer challenged, arguing interest on "future prospects" was illegal since such amounts were advance payments. The Supreme Court unanimously upheld the decision, holding that interest on compensation for future prospects is proper because claimants are deprived of the money during lengthy litigation. The Court encouraged insurers to settle claims promptly to avoid interest accumulation and dismissed the appeal.
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