(iii) INTEREST ON COMPENSATION

• Interest - On the amount of compensation - Where such an amount remained in arrears almost for a period of three years - Awarding interest would be reasonable in such cases.
Sakinabibi v. Gujarat State Road Transport Corporation, 1992 LLR m: 1992 (I) liC 365: 1992-1 CLR 762: 1992-1 LIN 514 (Guj HC).

• Insurer cannot be held liable for interest and penalty on late payment of compensation.
Kashibhai Rambhai Patel v. Shahabhai Somabhai Parmer, (2001) 1 LLJ 1121: (2000) 2 LLN 406: (2000) 85 FLR 373: 2000 LLR 1103 (SC).

• Insurer will be liable to pay interest and cost besides compensation when imposed by Compensation Commissioner.
Competent Construction Company v. Oriental Insurance Company, 2001 liC 1863: (2001) KLR 215: (2001) 90 FLR 59: 2001 LLR 594 (Del He).

• Interest on compensation will be payable from the date of accident.
Saridharan v. State of Kerala, 2001 LLR 247 (Ker He).
Alex V. Chacko v. Commissioner for Workmen's Compensation, (2004) 2 LIN 1161: 2004 LLR 381: 2004 (100) FLR 753 (Ker HC).

• The interest on delayed payment of compensation for an accident ~ill be payable by the employer.
Kasturi Bai v. Sub-Div. Officer, Public Works Deptt. Sub-Dn.Raisen IMP), (2005) 1 LLJ 254: 2004 LLR 1020 (MP HC).

• The rate of interest on delayed payment of compensation can be more than 12% as prescribed in exceptional circumstances.
B. Srikanth Reddy v. K. Mnhesh, 2005 LLR 30 (AP HC).

• On default by the employer in making timely payment of compensation to the dependents of the deceased, the interest will be payable jointly by the employer and the insurer.
New India Assurance Company v. Mnya Devi, 2006 LLR 164 (HP He).

• An insurer can't be exonerated from payment of interest on compensation for accident when there is delay.
Suresh Kumar v. Mmgilal, 2006 LLR 1222 (Raj He).

• Interest will be payable to the dependent of deceased workman dying in an accident.
New India Assurance Company Ltd. v. Bhagwanti Devi, 2007 LLR 447 (SN) (P&H He).

• Liability to pay interest on compensation arises after 30 days of death of the deceased.
Milhindera Devi v. Govl. of NCT of Delhi, 2007 LLR 759 (Del He),

• Unlike Motor Vehicle Act, under Workmen's Compensation Act interest on compensation is mandatory.
National Insurance Co. Ltd, v. Rekha, 2008 LLR 5 (Ker He).

• Insurance Company cannot be held liable for payment of interest on compensation.
Manager, Chulika Eslate v. Kunjumohammed, 2008 LLR 727 (Ker He).

• If the Insurance policy did not provide that interest or / and penalty will not be paid by the insurer - the insurance company will be liable to pay interest. Also the liability to pay interest starts on completion of one month from date of adjudication of the claim by the Commissioner for workmen's compensation.
Kamla Chalurvedi v. Nalional Insurance Co., 2009 FLR 149 (SC).