DILBAGH SINGH Vs. NEW INDIA ASSURANCE CO. LTD.

JUDGEMENT

(1.) THE owner is aggrieved by the fact that in the manner of determination of compensation for injuries received by a workman the insurer was made liable to pay only the liability that would arise if a claim were to be made under the Workmen Compensation Act. For the rest of the amount it was made payable by the owner. The counsel appearing on behalf of the owner contends that the insurer had taken an extra premium of Rs. 45/ - to cover the risk of the driver and the person employed in connection with the operations of maintenance of the insured's vehicle. This is the basic premium which the owner is bound to take for a commercial vehicle. Section 147 of the Motor Vehicles Act details the classes of persons who would be required to be compulsorily covered and what policy shall be provided for Section 147(1) proviso states that a policy shall not be required to cover the liability in respect of death or injury to any employee other than the liability arising under the Workmen Compensation Act in respect of death or injury. The only liability that is required to be therefore covered is the liability arising under the Workmen Compensation Act and the restriction of the liability shall be seen through the provisions of the Workmen Compensation Act itself. If only a specific document cover allows for unlimited liability as far as the workman is concerned it shall be possible to make a claim against the insurer only to the extent to which the Act provides.

(2.) IT ought not to be understood that in every case where a workman comes by injury or death the entitlement shall be only to the extent which the Workmen Compensation Act provides. Where ever the workman is a third party to an accident caused at the instance of another then there are two ways possible for a person to secure the redressal: