High Court Ruling Shifts Liability to Employers in Insurance Cases
The Uttarakhand High Court has ruled that employers are liable for compensation if insurance policy terms are violated knowingly. This decision absolves insurers but mandates that the employer pay compensation. The court ordered Devbhoomi Construction to compensate the family of a deceased truck driver, affirming a Rs 5,46,560 payout.
- Country:
- India
The Uttarakhand High Court has issued a pivotal ruling, shifting the compensation liability in insurance cases to employers if policy terms are knowingly breached. Justice Pankaj Purohit's judgment offers relief to insurance firms while ensuring compensation for accident victims' families.
In a significant case, Bhakti Ram's petition highlighted a tragic incident involving his son, Manish Kumar, a truck driver for Devbhoomi Construction. The accident occurred on March 20, 2009, leading to Kumar's untimely demise. Although the company claimed insurance should cover the payment, the absence of a valid heavy vehicle license shifted the liability to the employer.
The court upheld the original compensation of Rs 4,48,000 plus interest, totaling Rs 5,46,560, to be paid by Devbhoomi Construction to the claimant. This decision reinforces previous Supreme Court judgments on insurance policy violations, marking a significant precedent in the interpretation of liability and compensatory justice.
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