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Judgment
Honourable Mr. P. Devadass, J.—The New India Assurance Co. Ltd., the insurer of the vehicle involved in the accident disputes its liability
to pay the compensation awarded. On 02.04.2007, one Pitchai travelled in the Tractor TN 65 9949, which pulled the Tanker TN 67 C 4168.
Due to the rash and negligent driving of the driver, accident took place. Pitchai died. His dependants claimed compensation. They were awarded
Rs. 2,00,000/-.
The learned counsel for the appellant would contend that actually the deceased travelled in the mud guard of the Tractor. He is not covered
under the policy. So, the company is not liable to pay the award amount.
The learned counsel for the claimants/ respondents 1 and 2 would contend that the deceased travelled in the tractor as an employee. Employees
are covered in the policy. Hence, the company is liable.
I have anxiously considered the rival submissions, perused the materials on record and the impugned award of the Tribunal.
The accident was on 02.04.2007. In the accident deceased Pitch died. Admittedly, at the time of accident, the insurance was in force with the
appellant. There is no acceptable evidence to show that the deceased travelled on the mud guard. R.W. 1, a staff of the insurance company admits
that there is coverage for the employee. The deceased went in the vehicle as an employee.
In The New India Assurance Company Ltd. Vs. Govindaraj and Ariraman , this Court held that when once the Insurer accepted that there is
premium for an employee, there is no bar for the employee to travel along with the driver of the vehicle. Whether the deceased travelled in the
Tractor or in Trailer is immaterial when the premium was paid to cover the employee, in such a case, the insurer is liable to pay the compensation
amount.
Considering the above aspects, the appellant is bound to indemnify the vehicle owner. Thus, the Tribunal has rightly held that the Company is
liable to pay the award amount. In the result, the appeal is dismissed. The award of the Tribunal is confirmed. The appellant shall deposit the
balance amount within four weeks from the date of receipt of a copy of this Judgment. On such deposit, respondents 1 and 2 are permitted to
withdraw their respective share of amount, less amount, already withdrawn. No costs. Consequently, connected M.P. (MD) No. 1 of 2010 is
dismissed.