NATIONAL INSURANCE CO LTD Vs. KANSHI RAM

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE instant appeal filed by the insurance company limits challenge to the order dated 11. 9. 2006 passed by the Commissioner Workmen's compensation insofar it hold that 12% interest on the compensation amount with effect from the date of the death of the deceased workman shall be borne by the insurance company.

(3.) IT is urged at the hearing today that there is no statutory liability cast by any law requiring insurance company to pay interest and that the policy of insurance does not contain a covenant requiring insurance company to pay interest if a claim is allowed under the Workmen's Compensation Act. Second contention urged is that the liability to pay compensation accrues on the day the same is adjudicated and hence the interest becomes payable with effect from the date liability is adjudicated upon.