In Brief
A husband died in a motor vehicle accident in 2003. His widow claimed compensation under workmen compensation law against the vehicle owner and the insurance company. The Workmen Compensation Commissioner awarded Rs. 4,27,148 plus 12% interest. The High Court set aside this award, questioning whether the deceased was actually employed by the insured vehicle owner. The Supreme Court restored the award, holding that an insurance company's liability to pay third-party compensation does not cease when an insured vehicle is transferred to a new owner without notification. Once insured, the policy coverage automatically extends to protect third-party victims regardless of ownership changes.
The lawyer headnote and full judgment text are available to registered users.