Gangtok: In a significant verdict, the Sikkim High Court has overturned a Motor Accident Claims Tribunal (MACT) decision, ordering United India Insurance Company Ltd to pay a compensation of ₹21.89 lakh to the parents of a labourer who tragically died in a vehicular accident. Justice Bhaskar Raj Pradhan, in his ruling, clarified that the deceased was indeed a workman covered under the insurance policy, and not merely a passenger, a crucial distinction that led to the reversal of the initial MACT rejection.
The parents of the victim had approached the High Court under Section 166 of the Motor Vehicles Act, 1988, challenging the MACT’s earlier stance that their son was a gratuitous passenger and thus not covered by the vehicle’s insurance. The unfortunate incident took place on April 20, 2023, when the labourer was travelling from Rorathang to Bering in East Sikkim.
The High Court meticulously noted that the deceased had been specifically hired as a daily wage labourer to unload five bags of sand being transported in the vehicle. The vehicle owner himself corroborated this, stating that the deceased frequently assisted him with petty tasks and had boarded the vehicle for the sole purpose of unloading sand intended for repairing his house drain. Justice Pradhan concluded that this evidence unequivocally established the deceased as a workman.
Furthermore, the court referenced the Employees’ Compensation Act, highlighting that the definition of “workman” encompasses helpers, cleaners, and other individuals engaged in work connected to a motor vehicle. A pivotal point in the High Court’s decision was the revelation that the vehicle owner had paid an additional premium specifically for workmen’s liability, thereby extending the insurance coverage to the deceased.
The High Court dismissed the insurance company’s contention, which was based on an investigator’s report suggesting the deceased was a gratuitous passenger merely because he hailed from the same village as the driver. The court firmly held that the accident was a direct result of the rash and negligent driving of the vehicle’s driver, establishing the owner’s vicarious liability. Justice Pradhan affirmed that the compensation of ₹21.89 lakh, coupled with a 9 per cent interest rate from the date the claim petition was filed, constituted “just compensation” for the profound loss suffered by the parents.
Read More: Sikkim CM Unveils Phased Welfare Rollout, Prioritising Vulnerable