The absence of coverage for loadmen under the insurance policy and the lack of connection between the vehicle and the accident led to the exoneration of the insurance company from liability.

JUDGMENT

(Prayer: Civil Miscellaneous Appeal filed under Section 30 of Workmen Compensation Act 1923, to set aside the award passed in W.C.No.36 of 2012 on the file of the Labour Deputy Commissioner Court, Workmen Compensation, Tirunelveli dated 08.08.2016 and allow this appeal.)

1. The appeal has been filed by the insurance company challenging the award passed by the Deputy Commissioner of Labour Cum Authority under the Workmen Compensation Act, Tirunelveli in W.C.No.36 of 2012 on the ground of liability.

2. The parents of the deceased minor boy had filed a claim petition contending that the deceased was employed with the first respondent tractor owner and while he was in employment as a loadman, he had died. Hence, they have prayed for a compensation of Rs.4,57,080/-.

3. The owner of the tractor cum trailer had remained exparte and the insurance company had filed a counter and contended as follows:

(i). The tractor alone is insured with the second respondent insurance company under ''Miscellaneous Vehicles Package Policy Act'' and it was insured for the purpose of agricultural activities.

(ii). Except the driver of the tractor and personal accident coverage to the owner cum driver, no other employee including the loadmen are covered under the policy.

(iii). The vehicle was registered for the purpose of agricultural activities and at the time of accident, it was used for carrying sand for commercial purposes. Therefore, there is a clear violation of the policy conditions.

(iv). The deceased was attempting to carry out illegal mining of sand at about 4.00 a.m on 30.07.2010. At that point of time, the sand had collapsed and the deceased was covered by the sand and he had passed away. Therefore, the insurance policy does not cover the illegal activities of the insured person.

(v). At the time of alleged accident, the tractor and trailer were stationery and hence, there was no connection whatsoever with the accident and the insured vehicle.

4. The Commissioner of Workmen Compensation after considering the oral and documentary evidence had arrived at a finding that the deceased was employed with the first respondent as a loadman. He had further arrived at a finding that the vehicle involved in the accident was insured with the second respondent insurance company. On the technical ground that there is no policy coverage of the loadman, the insurance company cannot escape. The Commissioner had also relied upon a judgement of the Karnataka High Court and our High Court to arrive at a finding that the loadmen are also covered in the insurance policy of a commercial vehicle and the insurance company is liable to pay compensation. Ultimately, the Commissioner had arrived at a quantum of Rs.6,39,198/- and directed the insurance company to deposit the said amount. The said award is under challenge in the present appeal.

5. The learned counsel for the appellant had contended as follows:

(i).The insurance policy covers only the driver of the tractor and it does not cover any other employee of the tractor.

(ii).The vehicle has been registered only for agricultural purposes. However, the vehicle has been admittedly used for illegal mining of sand for commercial purposes. Therefore, it is clear that there is a violation of the policy conditions.

(iii).At the time of accident, the tractor and trailer were stationery and while digging the sand, it had collapsed and the deceased had passed away. Therefore, there is no connection whatsoever with the usage of the vehicle with the accident. Therefore, the insurance under the Motor Vehicles Act not covers the liability under the Workmen Compensation Act. In view of non coverage of the alleged loadman in the insurance policy, the insurance company is not liable to pay any compensation.

(iv).The Commissioner under Workmen Compensation Act had erroneously directed the insurance company to pay compensation wi