n a significant judgment, the Sikkim High Court has set aside a Motor Accident Claims Tribunal (MACT) ruling and directed United India Insurance Company Ltd to pay ₹21.89 lakh as compensation to the parents of a daily wage labourer who died in a road accident in April 2023.
Justice Bhaskar Raj Pradhan, who delivered the verdict, held that the deceased was not a gratuitous passenger but a workman covered under the vehicle’s insurance policy, thereby making the insurer liable to pay compensation.
The case pertains to an accident that occurred on April 20, 2023, when the victim, hired to unload sand bags, was travelling in a vehicle from Rorathang to Bering in East Sikkim. The vehicle met with an accident, resulting in his death. The deceased’s parents filed an appeal under Section 166 of the Motor Vehicles Act, 1988, challenging the MACT’s decision, which had rejected their claim on the ground that the deceased had only taken a lift and was not covered under the insurance.
However, the High Court found that the deceased was hired as a daily wage labourer to assist in unloading five bags of sand for the repair of a house drain. The vehicle owner had also stated that the deceased used to help with petty work. Justice Pradhan observed that this was sufficient to classify the deceased as a workman.
Referring to the Employees’ Compensation Act, the court clarified that the term “workman” includes not only drivers and cleaners but also other persons engaged in work related to the vehicle. Additionally, since the vehicle owner had paid an extra premium for workmen’s liability, the insurance company’s policy did cover the deceased.
Rejecting the insurer’s contention that the deceased was a gratuitous passenger from the same village as the driver, the court found the evidence insufficient to rebut the claim of employment. It also held the vehicle owner vicariously liable, as the accident was caused due to the rash and negligent driving of the vehicle.
Terming ₹21.89 lakh as “just compensation”, the court also ordered that the amount be paid with 9% annual interest from the date the claim petition was filed.
