Gangtok: The Sikkim High Court has directed United India Insurance Company Ltd to pay Rs 21.89 lakh in compensation to the parents of a labourer who died in a road accident in April 2023, setting aside an earlier order by the Motor Accident Claims Tribunal (MACT).
Justice Bhaskar Raj Pradhan held that the deceased was a workman covered under the vehicle’s insurance policy, not a gratuitous passenger as previously determined by the tribunal.
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The case relates to an accident that occurred on April 20, 2023, when the deceased was travelling in a vehicle from Rorathang to Bering in East Sikkim.
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The MACT had rejected the compensation claim filed under Section 166 of the Motor Vehicles Act, 1988, ruling that the deceased had taken a lift and was not eligible for coverage under the policy.
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However, the High Court found that the deceased had been hired as a daily wage labourer to unload five bags of sand being transported in the vehicle. The vehicle owner stated that the sand was intended for repair work at his residence and that the deceased assisted with such tasks.
Justice Pradhan held that this constituted sufficient evidence to classify the deceased as a workman. The court referred to the Employees’ Compensation Act, under which the definition of “workman” includes those engaged in work connected to a motor vehicle, such as helpers and cleaners.
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The judgment noted that the insurance policy included an additional premium for workmen’s liability, thereby extending coverage to the deceased. The court rejected the insurance company’s argument that relied on an investigator’s report claiming the deceased was a gratuitous passenger due to his acquaintance with the driver.
The High Court also held that the accident was caused by the rash and negligent driving of the vehicle’s driver, making the owner vicariously liable.
Justice Pradhan determined that the amount of Rs 21.89 lakh was just compensation and directed that it be paid with 9% annual interest from the date of the filing of the claim petition.