1. Appellant insurance company has filed this appeal challenging the judgment and order dated 20.8.2007 made in Workmen's Compensation Case No. 102 of 2007 NF, passed by the Labour Officer and Commissioner for Workmen's Compensation, Sub-Division II, Bellary (hereinafter referred to as 'the WCC', for short), fastening the liability to compensate the claimants.

2. The respondent Nos. 1 to 4 herein, who are the wife, son, father and mother of the deceased Ismail, filed claim petition contending that the deceased Ismail was working as a driver on the bus bearing registration No. KA 16-4883. On 30.12.2002, as per the instructions of the owner of the bus, he picked up the passengers from Sandur to Ramapur and on that night he stayed at Ramapur. On the next morning at about 5 a.m., while he was driving the bus, he suffered heart attack and collapsed on the steering. Immediately, he was shifted to Ramapur Government Hospital and the doctor declared that the deceased had died due to cardiac arrest. Thereafter, a police complaint was lodged with the jurisdictional police station. They contended that as on the date of death of the deceased, he was aged about 36 years, earning salary of Rs.4,000 per month and daily bhatta of Rs.50. They contended that the deceased died due to stress and strain during the course and out of employment and that the family lost its only bread earner and , therefore, the owner as well as the insurer of the vehicle were liable to compensate them.

3. In response to the notice issued by the WCC, the owner and insurer of the vehicle entered appearance. The owner of the vehicle filed his written statement admitting that the deceased was working as a driver on the bus belonging to him and while he was driving the bus he (deceased) died during the course and out of employment. However, he contended that he was paying salary of Rs.3,000 per month.

4. The insurance company filed its written statement denying the entire averments made in the claim petition and disputing the death of the deceased having occurred during the course and out of employment. It contended that there was no relationship of master and servant between the deceased and the owner of the vehicle. It further contended that the deceased was suffering from diseases due to which he died and hence, the insurer was not liable to compensate the claimants and sought for dismissal of the appeal.

5. On the basis of the pleadings of the parties, the WCC framed necessary issues. The claimant No. 1 examined herself as PW 1 and examined a witness as PW 2 and got marked the documents as Exhs. P1 to P6. On behalf of the respondents, no witnesses were examined nor any document was marked.

6. The WCC, after appreciating the oral and documentary evidence and taking into consideration the police report, driving license and post - mortem report issued by the Government Hospital, Ramapur, held that the deceased had died due to cardiac arrest during the course and out of employment and hence, the claimants, i.e., wife, son and parents of the deceased, who were dependants of the deceased, were entitled for compensation. With regard to the quantum of compensation, though the claimants claimed that the deceased was getting salary of Rs.4,000 per month and bhatta of Rs.50 per day, since the owner of the vehicle in his written statement had stated that he was paying a salary of Rs.3,000 per month, the WCC took the income of the deceased as Rs.3,000 per month. Further, the WCC taking 50 per cent of the income, i - e., Rs.1,500 per month and applying the relevant factor 194.64 having regard to the age of the deceased as 36 years as on the date of accident, awarded compensation of Rs.2,91,960 with interest at 12 per cent per annum. Since the deceased had got a valid and effective driving license and the insurance policy issued in respect of the bus was in force, the liability to compensate the claimants was fastened on the insurance company. Being aggrieved by the order passed by the