Sikkim HC Mandates Payout in Fatal Motor Accident Case

The Sikkim High Court overturned a Motor Accident Claims Tribunal decision, directing United India Insurance Company to compensate Rs 21.89 lakh to the parents of a deceased labourer. The court ruled the labourer, a daily wage worker, fell under workman coverage in the insurance policy, not just a passenger.

The Sikkim High Court has overturned a ruling by the Motor Accident Claims Tribunal, directing United India Insurance Company Ltd to pay Rs 21.89 lakh in compensation. This payment is to be made to the parents of a labourer who tragically died following a motor vehicle accident.

In his ruling, Justice Bhaskar Raj Pradhan clarified that the deceased was covered under a workman's insurance policy, refuting the insurance company's argument that he was merely a passenger. The appeal, filed under Section 166 of the Motor Vehicles Act, 1988, challenged the original decision that denied the compensation claim.

The accident, occurring on April 20, 2023, involved a labourer hired to unload sand. Despite investigations labeling him a gratuitous passenger, the High Court acknowledged his role as a workman, leading to a rightful claim under workmen's liability insurance. The court also assigned vicarious liability to the vehicle owner due to the driver's negligence.