M/S New India Assurance Co Ltd vs Mohammad Arif & Anr. on 3 April, 2025
21. The decision in Urmila Rani v. Manjit Kaur (supra) by a
Coordinate Bench of this Court does not help the cause of the
appellant/insurance company either because while interpreting Section
4A(3) of the E.C. Act, it was held that the insurance company is not
liable to pay interest payable on the compensation under Section 4A(3)
of the E.C. Act. However, it was held that the insurance company would
be liable, if it is shown that there was a comprehensive insurance policy
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FAO 158/2021
Digitally Signed By:PRAMOD Page 11 of 12
KUMAR VATS
Signing Date:04.04.2025
15:04:40
which would also make the insurance company liable to pay
compensation and interest amount, besides fastening the liability to pay
compensation towards the penalty.