I am from a pvt construction copnay.Under workmen's compensation policy the insurance company has deposited the amount of compensation and interest as per order of Labour Court. The inerest portion alone comes to about Rs. 3 lakhs. Now the insurance company has demanded payment of interest portion as they say they are not liable to pay the interst portion. One of the conditions of the policy is that they willnot pay interest/penalty. We have given intimation of accident immediately after the occurrence of accident. Our Lawyer says that Insurance Company has to bear the interest also.
What is the actual position in Law?
