NEW INDIA ASSURANCE COMPANY LTD. Vs. KALEESWARI

JUDGEMENT

(1.) New India Insurance Company Ltd, the appellant herein was the 2nd opposite party in WCC 41/2006 on the files of the Commissioner for Workmen's Compensation, Ernakulam. The aforesaid claim 1st petition was filed by the respondent herein/applicant claiming compensation for the death of her husband who died in an accident allegedly arose out and in the course of

(2.) nd herein/1st employment under the respondent opposite party. Hence she claimed compensation from the 1st opposite party. The 1st opposite party filed a written statement admitting that he was a workman and they also admitted the accident as averred by the applicant. Further it was contended that the workman is covered by a valid workman's compensation policy issued by the 2nd opposite party to the 1st opposite party and therefore the 2nd opposite party is liable to pay compensation to the applicant. The 2nd opposite party also filed a written statement admitting the policy. But, raised a contention that they are not liable to pay any interest for the amount of compensation. However, after considering the rival pleas and evidence thereon, the Commissioner for Workmen's Compensation passed the order granting an amount of Rs.3,12,692.50 as compensation to the respondent. The legality and correctness of the said order granting interest to the compensation is challenged in this appeal. 2.Heard the learned counsel for the appellant and the learned counsel for the respondent.

(3.) This appeal is filed mainly challenging the order whereby the 2nd opposite party was directed to pay interest at the rate of 12% per annum from the date of accident till the date of compensation. According to the Insurance Company, as per the terms of policy conditions, the Insurance Company is not liable to pay interest for the compensation. It is contended that as per the policy conditions, liability to pay interest for the compensation is excluded. So the Insurance Company is not liable to pay interest for the amount of compensation.