IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M.PRACHCHHAK
New India Assurance Company Ltd – Appellant
Versus
Manuba Wd/O Late Babuji Thakore – Respondent
JUDGMENT :
HEMANT M. PRACHCHHAK, J.
1. Present appeal is filed by the appellant – New India Assurance Company Ltd. against the judgment and award dated 27.03.2009 passed by the learned Workmen’s Compensation Commissioner, Kachchh at Bhuj in Workman Compensation (Fatal) Case No. 5 of 2008, whereby, the learned Commissioner has awarded compensation of Rs.4,15,960/- with interest @ 12% p.a. in favour of original claimants and also directed the appellant herein to pay penalty of Rs.2,07,980/- @ of 50% of the principal amount of compensation.
2. The short facts giving rise to present appeal are as under :
2.1 The deceased Babuji Amuji Thakore, aged 30 years was a workman employed by the respondent No.6 herein as his driver. He was working under the control of respondent No.6 and his wages were being paid by the respondent No.6. He used to work as a driver in truck bearing registration No.GJ-8- U-1409 and his monthly wages were Rs.4000=00 plus Rs.2500-00 per month as daily bhattha, in all his total wages were Rs.6,500=00 per month. The appellant is the insurer of respondent No.6. It is further the case of the appellant that on 15.06.2003 the deceased was on duty as a driver on the truck No.
The insurance company is liable for compensation and penalty under the Workmen's Compensation Act, with the court's jurisdiction limited to substantial legal questions, not factual re-evaluation.
Penalties under the Workmen’s Compensation Act are the responsibility of the insurer, not the Insurance Company; interest awarded at 12% was justified.
Liability for penalty under the Workmen's Compensation Act rests on the employer, not the insurance company, and interests awarded are also subject to statutory amendments.
Insurance companies are liable for interest on compensation but not for penalties due to employer violations under the Workmen's Compensation Act.
The appeal court can only intervene on substantial questions of law, preserving the Commissioner’s fact-finding authority while holding the employer liable for compensation penalties, with insurance ....
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 court held that the liability for interest on compensation lies with the Insurance Company, affirming a statutory interest rate of 12% under the Workmen's Compensation Act if not paid within a mo....
The court emphasized the necessity for accurate disability assessment under the Workmen Compensation Act, clarifying that the liability for interest rests solely with the employer, not the insurance ....
The main legal point established in the judgment is that the penalty under Section 4-A(3)(b) of the Workmen's Compensation Act is the liability of the employer and not the insurance company.
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.
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