Sikkim HC overturns MACT order, awards Rs 21.89 Lakh compensation to parents of deceased labourer

Overturning a Motor Accident Claims Tribunal (MACT) ruling, the Sikkim High Court directed an insurance company to pay Rs 21.89 lakh as compensation to the parents of a labourer who died after the vehicle on which he was travelling met with an accident.

Justice Bhaskar Raj Pradhan directed United India Insurance Company Ltd to pay the compensation on the ground that the deceased was a workman covered under its policy and not a mere passenger.

The appeal was filed by the victim's parents under Section 166 of the Motor Vehicles Act, 1988, challenging the MACT's ruling, rejecting their compensation claim, stating that the deceased had merely taken a lift and was not covered by the vehicle insurance policy.

The accident occurred on April 20, 2023, when the victim was travelling in the vehicle from Rorathang to Bering in East Sikkim.

The HC noted that the deceased was hired as a daily wage labourer to unload five bags of sand being transported in the vehicle.

The vehicle owner stated that the deceased used to assist in petty work and had boarded the vehicle to unload the sand meant for repairing his house drain, Justice Pradhan said, noting that this was sufficient to prove that the deceased was a workman.

The court held that under the Employees' Compensation Act, the term "workman" includes helpers, cleaners, and others engaged in work connected to a motor vehicle.

Since the vehicle owner had also paid an additional premium for workmen's liability, the insurance coverage extended to the deceased, Justice Pradhan observed.

The HC rejected the insurance company's argument, which relied on an investigator's report claiming that the deceased was a gratuitous passenger because he belonged to the same village as the driver.

The HC held that the accident occurred due to the rash and negligent driving of the vehicle's driver, which made the owner vicariously liable.

Justice Pradhan noted that Rs 21.89 lakh was a "just compensation" with a 9 per cent interest rate from the date of filing the claim petition. (PTI)