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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH, J
STAR HEALTH AND ALLIED INSURANCE COMPANY LIMITED – Appellant
Versus
STATE OF KERALA, – Respondent
JUDGMENT :
(N. NAGARESH, J.)
The petitioners in both these writ petitions are Companies engaged in the business of providing health insurance services to the general public. The petitioners seek to set aside Notification GO(P) No.8/2020/LBR dated 16.01.2020 of the Government of Kerala, Labour and Skills (E) Department to the extent it provides fixation of minimum wages for insurance agents.
2. The petitioners state that minimum wages were prescribed for insurance agents as per the Notification dated 16.01.2020. The petitioners submit that as per Section 3 of the Minimum Wages Act, the appropriate Government can fix minimum wages payable to the employees employed only in scheduled employment. Insurance business has not been included either in Part I or Part II of the scheduled employment. By a Notification GO(MS) No.177/2012/LBR dated 31.12.2012, the Government of Kerala has notified only “Financial Institutions”. Insurance business is different from the business carried out by financial institution.
3. The petitioners would further submit that the term “insurance agent” is defined under Section 2(10) of the Insurance Act and Section 42 of the Act provides for appointment of insurance a
The Minimum Wages Act applies to insurance agents classified under private financial institutions, affirming their status as employees despite commission-based remuneration.
The legality of setting minimum wages for insurance agents is contingent on the Supreme Court's pending review of prior court decisions.
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.
The insurer is liable for compensation based on revised minimum wage rates for the injured worker, emphasizing the beneficent purpose of compensation legislation.
Point of Law : Court is not inclined to invoke Article 226 for alleged violation of Article 14 as firstly each public sector Insurance Company is a separate identity and the decision taken is as per ....
The court established that for prosecution under the Minimum Wages Act, the establishment must fall within the defined scheduled employments, and the company must be named as an accused.
The court upheld the Government's authority to revise minimum wages under the Minimum Wages Act, emphasizing limited grounds for judicial review.
The Minimum Wages Act's notifications for shops and commercial establishments do not apply to scheduled Co-operative Banks, which are governed by distinct regulations.
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