ORIENTAL INSURANCE CO. LTD. Vs. RAJU

JUDGEMENT

(1.) THE Oriental Insurance Company Limited, the appellant herein, being aggrieved by the award of interest at, 6 per cent per annum on the amount of compensation determined by the Commissioner of Workmen's Compensation, Sub Division III, Bangalore, has approached this Court in this Appeal challenging the correctness of the said imposition of interest for the reasons set out in the Appeal.

(2.) WE have heard Sri S.P. Shankar, learned Counsel for the appellant, and perused grounds taken in die Appeal as well as the award.

(3.) ON a careful consideration of the award as well as the coverage found in the policy issued under the Act in favour of the insured, it is seen that the liability of indemnifying the insured as to imposition of interest of penalty is expressly excluded. The last sentence of the condition imposed reads as follows: It is hereby understood and agreed mat me cover provided under the policy shall not extend to indemnify the insured/insureds in respects of any interest and/or penalty which may be imposed on him/them on account of his/their failure to comply with me requirements laid down under the Workmen's Compensation Act, 1923 and subsequent amendments of the said Act.