20. Thus, where there is default on the part of the insurer, in not making
timely payment of interim compensation to the workman/employee, the
liability to pay compensation under section 4-A(3)(b) of the EC Act cannot
be fastened upon the shoulders of the insurance company. At the same time,
FAO 289/2022 Page 13 of 14Signature Not VerifiedDigitally Signed By:PRAMODKUMAR VATSSigning Date:03.04.202517:39:27
the Supreme Court in the cited case of Ved Prakash Garg v. Premi Devi
(supra), cited with approval a decision by the Rajasthan High Court titled as
United India Insurance Company Ltd. v. Roop Kanwar And Ors.2,
wherein it was held that if an additional premium has been paid by the
employer/insurer to cover compensation under the Workmen's
Compensation Act, the liability to pay the penalty under Section 4(A)(3)(b)
of the Act shall also be borne by the insurer.
In the case of United India
Insurance Co. Ltd. v. Roop Kanwar and Ors. (supra) a
learned Single Judge of the Rajasthan High Court had to
consider a situation where on payment of additional
premium the insurance company had agreed in the light of
endorsement No. 16 of the Policy to cover all liabilities
incurred by the insured under Workmen's Compensation
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Act. In view of this contractual coverage of liability the
insurance company in that case was held liable to meet the
claim for penalty and interest as imposed upon the insured
under Section 4-A(3) of the Compensation Act.
In the case of
United India Insurance Co. Ltd. v. Roop Kanwar and Ors. (supra) a
learned Single Judge of the Rajasthan High Court had to consider a
situation where on payment of additional premium the insurance
company had agreed in the light of endorsement No. 16 of the Policy
to cover all liabilities incurred by the insured under Workmen's
Compensation Act. In view of this contractual coverage of liability the
insurance company in that case was held liable to meet the claim for
penalty and interest as imposed upon the insured under Section 4-
In the case of United India Insurance Co.
Ltd. v. Roop Kanwar & ors. (supra) a learned Single Judge of
the Rajasthan High Court had to consider a situation where
on payment of additional premium the insurance company had
agreed in the light of endorsement no.16 of the Policy to
cover all liabilities incurred by the insured under
Workmen's Compensation Act. In view of this contractual
coverage of liability the insurance company in that case was
held liable to meet the claim of penalty and interest as
imposed upon the insured under Section 4A(3) of the
Compensation Act.
In the case of United India Insurance Co. Ltd. v. Roop Kanwar 1991 ACJ 74 (Rajasthan), a learned single Judge of the Rajasthan High Court had to consider a situation where on payment of additional premium the insurance company had agreed in the light of endorsement No. 16 of the policy to cover all liabilities incurred by the insured under Compensation Act. In view of this contractual coverage of liability the insurance company in that case was held liable to meet the claim for penalty and interest as imposed upon the insured under Section 4-A(3) of the Compensation Act.
Reference has also been made to the decision in United India Insurance Co. Ltd. v. Roop Kanwar , which, in our view, needs no consideration, as this decision is not directly on the point.
Reference has been made to the decision in Untied India Insurance Co. Ltd. v. Roop Kanwar 1991 ACJ 74 (Raj), which in our view, needs no consideration, as this decision is not directly on the point.