X company took WORKMENS COMPENSATION (GENERAL) POLICY from an Insurance Company. Policy covers skilled, semi skilled and unskilled labourers..
No of employees covered under unskilled are 3 and the cash/total wages paid was Rs 81,606.
unskilled labour(watchman) died while on duty and the LR's of the deceased filed claim under Workmens compensation Act claiming 6 lakhs as compensation. PrincipleEmployer, contractor as well as Insurance Co contested the claim. The commissioner instead of calculating wages as per the policy took the minimum wages fixed by Commn of Labour under contract labour Act and awarded compensation and also awarded 12% interest jointly and severally against all.
now the point is whether the commissioner is justified in taking minimum wages instead of the wages as per the policy. 2. whether the commissioner is justified in awarding interest under Workmens Compensation (General) Policy?
3.whether the Insurance company can succeed if the award is challenged in High Court.
