Case Note & Summary
The appeal was filed by United India Insurance Company Ltd. against the judgment and award of the Motor Accident Claims Tribunal, Aurangabad, in MACP No. 379 of 2005, which awarded compensation of Rs. 3,09,000/- with 9% interest to the claimants, the widow and minor daughter of deceased Ankush Shinde. The deceased was travelling as a loading-unloading labourer and caretaker of goods of a 'Folk Party' in the offending truck bearing No. MTO-6457. On 9.4.2005, due to rash and negligent driving by the driver (Respondent No. 4), the truck left the road and turned turtle, causing the death of the deceased. The Insurance Company contended that the deceased was not an employee of the insured (owner of the truck) and therefore the policy did not cover the liability. They relied on the Supreme Court judgment in Sanjeev Kumar Samrat v. National Insurance Company Limited, (2014) 14 SCC 243, which held that the insurer is not under a statutory obligation to cover all employees of the insured, but only those employed by the insured as per the policy. A person travelling as an employee of the owner of goods cannot be covered by the statutory policy. The court noted that the deceased was engaged by the owner of the goods (the 'Folk Party') and not by the truck owner. Therefore, the Insurance Company was not liable to indemnify the insured. However, following the principle of 'pay and recover', the court directed the Insurance Company to pay the awarded amount to the claimants and then recover the same from the owner and driver of the truck. The appeal was dismissed with the modification that the insurer can recover the amount from the owner and driver.
Headnote
A) Motor Accident Compensation - Liability of Insurer - Employee of Hirer - Deceased was loading-unloading labourer and caretaker of goods of 'Folk Party' travelling in offending truck - Held that deceased was employee of owner of goods, not owner of vehicle, and insurer is not liable under statutory policy for such employee - However, insurer must pay compensation to claimants and recover from owner and driver (Paras 2-5).
Issue of Consideration
Whether the Insurance Company is liable to indemnify the insured owner of the vehicle for the death of a loading-unloading labourer who was an employee of the hirer of the goods, not the vehicle owner.
Final Decision
Appeal dismissed. Insurance Company directed to pay the awarded amount to claimants and recover the same from the owner and driver of the offending truck.
Law Points
- Insurance company not liable for death of employee of hirer under statutory policy
- Deceased travelling as loading-unloading labourer is employee of owner of goods
- Insurer must pay and recover from owner of vehicle
