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Supreme Court Rules Insurance Company Liable for Worker Compensation Alongside Employer

25Dec

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules Insurance Company Liable for Worker Compensation Alongside Employer

The Supreme Court held that under the Employee’s Compensation Act, 1923, an insurer can be made a party and held jointly and severally liable for compensation if the employer's liability is covered by the insurance policy. The Court clarified that Section 19 of the Act empowers the Commissioner to determine the liability of the insurer, ensuring the workman's remedy is effective and not illusory. Facts Of The Case: The case originated from a claim filed by a workman (the second respondent), who was employed as a driver by the appellant, Alok Kumar Ghosh. The workman suffered a disabling injury due to an accident arising out of and in the course of his employment. He filed for compensation under the Workmen’s Compensation Act, 1923, against both his employer (the appellant) and The New In...

Supreme Court Landmark Ruling: Income for Accident Claim Not Capped by Workmen’s Compensation Act

The Supreme Court held that in a claim petition under Section 166 of the Motor Vehicles Act, 1988, the Tribunal must assess compensation based on the Act's principles. It is impermissible to apply the income ceiling from the Workmen's Compensation Act, 1923, once the claimant has elected the remedy under the M.V. Act. Facts Of The Case: The appellant, a 23-year-old lorry loader, suffered grievous injuries in a vehicular accident on 1st December 2015, which resulted in the amputation of his right leg below the knee. He filed a claim petition before the Motor Accident Claims Tribunal seeking compensation. The Tribunal, assessing his monthly income at Rs. 9,000, awarded a total compensation of Rs. 19,35,400, which included a significant component for future loss of income. On appeal by ...

Tribunal’s Income Assessment Upheld: Supreme Court Partially Allows Appeal in Injury Claim Case

The Supreme Court partially restored the Tribunal's compensation award, upholding the adopted monthly income and modifying attendant charges. It clarified that in the absence of a cross-appeal by the claimant, enhancement beyond the Tribunal's award or addition of future prospects cannot be claimed against the insurer's appeal. Facts Of The Case: On January 5, 2013, the appellant, Ramar, was standing by the side of the road when a rashly and negligently driven lorry hit him. The accident resulted in grievous injuries, leading to the amputation of his right leg from the thigh and a crush injury to his left leg, which paralyzed it. Medical evidence presented before the Tribunal, including the testimony of treating doctors and hospital records, proved the nature of the injuries and as...