Nainital, The Uttarakhand High Court has ruled that if the terms of an insurance policy are violated with the knowledge and consent of the employer, the insurer cannot be held liable in the event of an accident. In such cases, the responsibility to pay compensation rests with the employer.
Delivering the judgment, Justice Pankaj Purohit granted relief to the insurance company while clearing the way for the family of the deceased driver to receive compensation after 17 years.
According to the case details, petitioner Bhakti Ram stated that his 22-year-old son, Manish Kumar, was employed as a truck driver for Devbhoomi Construction Private Limited.
On the night of March 20, 2009, the truck fell into a deep gorge on the Rishikesh-Srinagar road, resulting in his death.
In a petition filed under the Employees’ Compensation Act, the family sought compensation, citing their financial dependence on the deceased.
The company that owned the vehicle admitted that the accident occurred while on duty, but stated that since the vehicle was insured, the insurance company was responsible for payment.
The insurance company contended that the deceased did not possess a valid license to drive a heavy vehicle. Upon investigation, the commissioner found that he only held a light motor vehicle license and that allowing him to drive a truck amounted to negligence on the part of the employer.
On this basis, the insurance company was absolved of liability, and the full compensation was imposed on the vehicle owner.
Citing previous Supreme Court judgments, the high court held that when insurance policy conditions are violated with the knowledge or permission of the employer, the insurer cannot be held responsible.
The court upheld the commissioner’s findings as legally sound and confirmed the compensation calculation. The original compensation was fixed at ₹4,48,000, with eight per cent simple interest for two years and nine months, taking the total to ₹5,46,560.
The high court directed that the entire amount, including accrued interest, be immediately paid to the claimant, Bhakti Ram, after adjusting any previous payments, if made.
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