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HRISHIKESH ROY, MANOJ MISRA
Managing Director, Kunnel Engineers And Contractors Pvt. Ltd. – Appellant
Versus
Divisional Manager, The New India Assurance Company Ltd. – Respondent
| Table of Content |
|---|
| 1. overview of the employment injury case. (Para 2 , 3 , 4 , 5) |
| 2. insurance company's argument against liability for interest. (Para 6 , 7) |
| 3. court's interpretation of insurance liability. (Para 8 , 9 , 10 , 11) |
| 4. contractual nature of insurance liability. (Para 12 , 13) |
| 5. final decision on insurance liability regarding interest. (Para 14) |
| 6. conclusion of the appeal. (Para 15 , 16) |
ORDER :
2. This appeal arise out of the order dated 29.09.2009 in MFA No. 67 of 2006 whereby the High Court has allowed the appeal filed by the insurance company and thereby directed the employer to pay interest on compensation as against the order of the Commissioner directing the insurer, to pay compensation with interest under the provisions of the Workmen’s Compensation Act, 1923 (now, the Employees Compensation Act, 1923) (for short, the ‘Act’). The sole reason offered by the High Court for allowing the appeal is that there is a contractual exception for the insurer, on payment of interest.
4. As the employer was insured with the respondent, on the next day of the accident, the employer reported the accident to the insurance company by letter dated 20.02.2001 and also requested for the
The liability for interest on compensation rests with the insured owner, not the insurance company, due to failure to inform the insurer.
The Insurance Company is liable for interest on compensation under the Employee’s Compensation Act, while the employer is responsible for penalty payments.
The liability to indemnify the employer in workman's compensation cases remains undisputed, and the insurer is obligated to pay the entire compensation, including interest, to the workman.
An insurer is not liable for interest payments when explicitly excluded in the insurance policy terms.
The main legal point established in the judgment is that the Insurance Company is primarily liable to pay compensation to the workmen under the Workmen Compensation Act.
Insurance companies are not liable for interest or penalties under workmen's compensation policies unless explicitly stated in the policy; responsibility for such payments typically lies with the emp....
The insurance company is not liable for interest payments under the Workmen's Compensation Act; liability rests with the employer to pay compensation and associated interest.
Insurance companies are liable for interest on compensation but not for penalties due to employer violations under the Workmen's Compensation Act.
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