M/S. National Insurance Co. Ltd. Vs Murugeswari

To allow this appeal with cost, set aside the order of the Commissioner for Employees Compensation, Coimbatore passed in EC.No.1 of 2018 dated 12.11.2019.

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CMA No. 596 of 2023

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For Appellant(s): Mr.N.Venkatraman For M/s M/s.

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Nageswaran And Narichania

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For Respondent(s): Mr.M. Selvam For Rr1 To 3 R4 -no Appearance

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JUDGEMENT

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This Civil Miscellaneous Appeal has been filed to set aside the order of

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the Commissioner for Employees Compensation, Coimbatore passed in

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EC.No.1 of 2018 dated 12.11.2019.

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The deceased Ramar was working as a Drier Operator in Monica Tea

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Factory and he reported to work on 06.02.2016, at around 10.15 a.m., while

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working, he was complained of chest pain to his co-worker, and he was

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immediately taken to the Stammore Hospital where he died due to the

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Myocardial infraction. Thereafter, the legal heirs of the said Ramar filed claim

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https://www.mhc.tn.gov.in/judis

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CMA No. 596 of 2023

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petition in EC No. 1 of 2018 on the file of the commissioner for employee's,

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Coimbatore ( in short ''commissioner''), claiming Rs. 4,,89,200/- as compensation. The respondents contested the case by filing the counter statement. On considering oral and documentary evidence, commissioner awarded a sum of Rs.3,71,987/- with 12% interest as compensation. Challenging the quantum of compensation, Insurance company filed this appeal.

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The learned counsel for the Insurance company submits that as per the policy condition insurance company is not liable to pay interest or penalty to that effect he filed the policy copy/Ex.R1, but without appreciating the policy condition commissioner erroneously awarded compensation with interest. Further, he relied the judgment of the Apex Court reported in 2006 5 SCC 192

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in the case of New Indian Assurance Company Limited Vs. Harshadbhai

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Amrutbhai Modhiya and Another:

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23... On a construction of the contract in question it is clear that the insurer had not undetaken the liability for interest and penalty, but had undertaken to idemnify the employer only to reimburse the compensation the employer was liable to pay among other things under the workmen's compensation Act. Unless one is in a position to void the exclusion clause concerning liability for interest and penalty imposed on the insured on account of his failure to comply with requirements of the

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https://www.mhc.tn.gov.in/judis

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CMA No. 596 of 2023

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workmen's compensation act of 1923, the insurer cannot be made liable to the insured of those amounts.

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The learned counsel for the claimants/respondents 1 to 3 submit that

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already the insurance deposited the award amount therefore pay and recovery

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method is to be ordered against the fourth respondent/employer of the deceased

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Ramar.

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On perusal of the order passed by the commissioner, it reveals that the

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commissioner discussed about the conditions of policy more particularly with

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regard to exclusion column but awarded interest. It is relevant to extract the

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policy condition.

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This policy shall not cover liability of the insured.

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a...

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d. For interest and/or penalty imposed on the insured under any law or otherwise.

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As per the policy condition (d) the insurance company is not liable to

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pay interest or penalty. However, the commissioner erroneously awarded

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compensation with interest as such is unsustainable. Hence, interest awarded by

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https://www.mhc.tn.gov.in/judis

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CMA No. 596 of 2023

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the commissioner for compensation is ordered to be set aside. Further, fourth

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respondent/employer is directed to deposit the interest as awarded by the commissioner within a period of eight weeks from the date of receipt of a copy

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of this judgement. Since, the award amount was already deposited by the insurance company, the claimants are permitted to withdraw the said amount. The fourth respondent/employer is directed to deposit 12% interest for the

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award passed by the commissioner within a period of four weeks from the date

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of receipt of a copy of this judgement.

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