ORIENTAL INSURANCE CO LTD Vs. VILAS DEVI

JUDGEMENT

(1.) Since these four special appeals raise common questions and, therefore, they were heard together and are being disposed of by a common judgment.

(2.) The main contention raised in these special appeals is that where on account of a motor accident an employee of the owner of vehicle dies while on duty in the course of his employment, whether the insurance company is liable to indemnify the insured in respect of claims arising out of such accident under Workmen's Compensation Act (for short 'the Act') even in respect of liability to pay interest and penalty on account of delayed payment of compensation under the provisions of the Act.

(3.) The case of the insurance companies is that liability of the insurance companies in respect of claims arising under the provisions of the Act is only confined to the principal sum of compensation and they are not liable to indemnify the insured in respect of liability to pay the interest or penalty which arise because of the fault of the insured in not paying compensation in accordance with the law within the time provided in the statute, and not as a result of accident.