Insurance Companies can’t deny the insurance claim in form of compensation in view of accident reported at commercial establishment.

Section 53 of the ESI Act bars on other compensation sought but not under MACT.

Let’s have the facts of the case first:

  • The victim was crushed under reversing truck on a factory premises in Mohali in July 2011.
  • In 2014, Motor Accident Claims Tribunal (MACT) awarded compensation of Rs 28 lakhs to the victim’s family.
  • The insurance company argued that the accident had happened at workplace and victim was on duty. So they are liable to claim compensation u/s of Employees State insurance (ESI), Act 1948. Also Section 53 creates bar on securing any other compensation.
  • After the claim was denied victim’s wife moved to the High Court Chandigarh.
  • Court held, since the factory was a public place as the truck had premises and the right to excess as well.
  • Law Point: Here it is to be determined whether victim was on duty when accident happened. Finding-> the injury was not due to the employment of victim. Hence the MACT compensation would be maintainable inspite of the bar under Section 53 of the ESI Act.
  • Clarification : the purpose of bar under ESI Act is that Employer should not face more than one claim in relation to the same accident in case of injury during employment.

As the death of the employer was caused due to rash & negligence of truck driver, hence claim under MACT can’t be denied.

For more info on subject, you may also contact Best/Top/Expert MACT High Court Chandigarh Lawyer/Advocates.

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