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Karnataka High Court
NEW INDIA ASSCE CO.LTD. - Appellant
Versus
MEENAXI - Respondent
Decided On : 11-11-80
Insurance Company - Motor Vehicles Act - Limitation of Liability under Workmen's Compensation Act
Fact of the Case:
The appeal is against the judgment awarding compensation to the claimants and fixing the liability on all the respondents including the insurance company. The insurance company argued that its liability is limited to what is stated in the Workmen's Compensation Act as per section 95 of the Motor Vehicles Act.
Finding of the Court:
The court found that the liability of the insurance company for the death of an employee like a Hamal is limited to what is contained in the Workmen's Compensation Act. The tribunal was directed to fix the liability of the insurance company under section 110-B of the Motor Vehicles Act at Rs. 18,000.
Issues: Interpretation of section 95 of the Motor Vehicles Act and its limitation on the liability of the insurance company. Calculation of compensation under the Workmen's Compensation Act.
Ratio Decidendi: The court interpreted section 95 of the Motor Vehicles Act and held that the liability of the insurance company is limited to what is contained in the Workmen's Compensation Act. The compensation was calculated based on the provisions of the Workmen's Compensation Act.
Final Decision: The appeal was allowed, and the liability of the insurance company was limited to Rs. 18,000 along with interest and costs, with the balance to be paid by the owner and the driver of the vehicle jointly and severally.
( 1 ) THIS appeal by the Insurance Company is directed against the judgment and award dated 20-2-1979 passed by the Accidents Claims Tribunal, II belgaum, in M. V. C. No. 24 of 1978, on its file, awarding compensation of rs. 34,000 to the claimants and fixing the liability jointly and severally on all the respondents including the insurance Company.
( 2 ) THE ground made out by the insurance Company in this appeal is that the Insurance Company's liability is limited to what is stated in the workmen's Compensation Act as per s. 95 of the Motor Vehicles Act as the person who died was a Hamal who was travelling in the lorry. Sec. 95 (2) of the Motor Vehicles Act makes it clear that the liability of the Insurance companv for the death of an employee like a Hamal is limited to what is contained in the Workmen's Compensation act. The Hamal, according to the evidence on rerord was getting rs. 300/- per month. Under Schedule iv of the Workmen's Compensation act (amended) for the death of a workman getting between Rs. 200 and rs. 300 per month the quantum prescribed is Rs. 18,000 as compensation. Hence, the Tribunal ought to have fixed the liability of the Insurance Company under S. 110-B of the Motor Vehicles act at Rs. 18,000/ -. To that extent the appeal is entitled to succeed. In the result, the appeal is allowed. The liability of the Insurance Company is limited to Rs. 18. 000/- along with interest and costs. The balance shall be paid by the owner and the driver of the vehicle jointly and severally.
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