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AJAY MOHAN GOEL
New India Assurance Company Ltd. – Appellant
Versus
Kamla Devi (Since Deceased) through LRs. Sh. Nek Ram – Respondent
JUDGMENT :
AJAY MOHAN GOEL, J.
1. By way of this appeal, the appellant has challenged the order dated 01.03.2013, passed by the Court of learned Commissioner, Employee’s Compensation, Solan, District Solan, H.P. in WCA No. 51/2 of 2011, titled Smt. Kamla Devi vs. Mrs. Kamlesh Thaur and Another, in terms whereof, the claim petition filed by the claimant under Section 22 of the Workman’s Compensation Act was allowed by learned Commissioner by awarding an amount of Rs. 4,23,580/- with interest @ 12% per annum w.e.f. 12.07.2015, i.e. one month from the date of accident till the deposit of the amount. Learned Commissioner further ordered that the order be complied with by the Insurance Company with which the offending vehicle was insured within one month as from the date of the order, failing which it would liable to pay penalty and interest thereupon. This appeal was admitted on 16.09.2013 on the following substantial question of law:
2. Leaned Senior Counsel appearing for the
Claim for compensation along with interest will have to be made good jointly by Insurance Company with insured employer.
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 liable for interest on compensation under the Employee’s Compensation Act, while the employer is responsible for penalty payments.
The main legal point established in the judgment is the liability of the Insurance Company to pay interest imposed upon the insured employer by the Workmen's Commissioner under Sec. 4A(3) of the Empl....
Insurance companies are liable for interest on compensation but not for penalties due to employer violations under the Workmen's Compensation Act.
The liability of the employer to pay penalty amount up to 50% of the compensation under Section 4-A(3)(b) of the Employees' Compensation Act.
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.
An insurance company is not liable for interest on workmen's compensation awards, as liability rests solely with the employer under the Workmen’s Compensation Act.
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