NATIONAL INSURANCE COMPANY LIMITED Vs. MAYA DEVI

JUDGEMENT

(1.) Is the insurance Company liable for the payment of penalty in a case where the employer fails to compensate the workman's family for the injury or death This is short question that arises for consideration in this case. A few facts may be noticed.

(2.) Dhararn Singh was employed with M/s. Markanda Textile, Gohana. On October 13, 1991 a bale of cotton fell on him. He died. His widow and children filed a petition for the award of compensation. They claimed that he was 46 years of age and was drawing a salary of Rs. 904 per mensem. Initially, the employer alone was impleaded as a party. On an objection being raised, even the insurer viz., the National Insurance company was also impleaded.

(3.) After consideration of the matter, the Commissioner found that the claimants were entitled to the payment of Rs. 58,966/- by way of compensation. It was further held that there was delay in payment. Consequently, he further imposed a penalty of 40 per cent. Thus, a total compensation of Rs. 82,552.40 paise was awarded. This amount was held to be payable by the Insurance Company.