Case Details: United India Insurance Company Ltd. vs. Jamna Devi - [2025] 178 taxmann.com 594 (HC - Himachal Pradesh)
Judiciary and Counsel Details
- Vivek Singh Thakur, J.
- Ashwani K. Sharma, Sr Adv. and Ms Nisha Nalot, Adv. for the Appellant
- Digvijay Singh and Rahul Mahajan, Advs. for the Respondent
Facts of the Case
In the instant case, the deceased was working as a helper in the factory of the principal employer. He was coming to attend his duty and reached near the factory gate when he was hit by an unknown vehicle, resulting in his death on the spot in front of the factory gate due to a head injury.
Claimants, his dependents, preferred a claim petition claiming compensation on account of his death. The Commissioner awarded compensation in favour of claimants, directing the insurance company to pay the same to the claimants by indemnifying the principal employer.
The appellant-Insurance Company contended that although 33 employees, enumerated in the list attached to the Policy Schedule, were insured, there was an ‘Exception Clause’ in the Policy providing that the Company would not be liable under the Policy in respect of the insured’s liability to employees of contractors to the insured.
It was noted that policies were purchased by insured in good faith and at the time of issuing the Policy Schedule for 33 employees, the Exception Clause contained in the Policy was not disclosed, and, therefore, the said condition contained in the Main Policy could not be made the basis to relieve the Insurance Company from its liability.
High Court Held
The High Court held that the exception clause contained in the main policy document was not reflected in the policy schedule issued at the time of purchasing the policy by the appellant and principal employer when the deceased was insured as an employee by including him in 33 employees insured vide insurance policy schedule, that too without any exception clause of his exclusion in the policy schedule.
Therefore, it could not be said that the appellant was not liable to pay compensation on account of the death of the deceased during the course of employment for the specific exception clause. Thus, substantial questions of law were to be answered against the Insurance Company and in favour of the claimants.
List of Cases Reviewed
- India Limited v. New India Assurance Company Limited [2009] 5 SCC 599 (para 14)
- Marketing (P) Ltd v. Tata AIR General Insurance Co. Ltd. [2023] 1 SCC 428 (para 18).
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