Case Note & Summary
The appeal was filed by M/s New India Assurance Co. Ltd. against the judgment and award dated 10th July 2002 passed by the Commissioner, Workmen's Compensation Act, in W.C.A. No. 9/2000. The respondents No. 1 and 2, parents of deceased Ismail, had claimed compensation for his death while driving a tractor owned by respondent No. 3. The tractor was insured with the appellant. The accident occurred on 3rd February 2000 on private agricultural land. The Commissioner held the insurer liable. The High Court allowed the appeal, holding that the insurance policy did not cover the risk of the driver and the accident did not arise out of and in the course of employment under a covered risk. The court set aside the award against the insurer.
Headnote
A) Workmen's Compensation Act, 1923 - Section 30 - Appeal against award - Insurer's liability - Tractor driver died in accident on private agricultural land - Policy did not cover driver - Held, insurer not liable as accident not arising out of and in course of employment under a covered risk (Paras 1-10). B) Insurance Law - Motor Vehicle Insurance - Agricultural tractor - Policy covering only third-party risks and not driver - Accident on private land - Held, insurer not liable to pay compensation (Paras 5-8).
Issue of Consideration
Whether the insurance company is liable to pay compensation for the death of a tractor driver when the accident occurred on private agricultural land and the policy did not cover the risk of the driver?
Final Decision
Appeal allowed. The judgment and award dated 10th July 2002 passed by the Commissioner, Workmen's Compensation Act, in W.C.A. No. 9/2000 is set aside insofar as it holds the appellant-insurance company liable. The insurer is not liable to pay compensation.
Law Points
- Liability of insurer under Workmen's Compensation Act
- 1923
- Scope of insurance policy for agricultural tractor
- Definition of 'workman' and 'employer'
- Burden of proof on insurer to establish breach of policy conditions
