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Alok Kumar Ghosh vs. The New India Assurance Company Ltd

Not available · 2025 INSC 1239Decided 9 Oct 2025
Not available
Justice Manoj Misra · Justice Nongmeikapam Kotiswar Singh

Background

The appellant, Alok Kumar Ghosh, employed a driver (the second respondent) who suffered a disabling injury in an accident during his employment and claimed compensation under the Workmen's Compensation Act, 1923 against both the employer and the insurer, New India Assurance. The Commissioner, Workmen's Compensation, West Bengal, awarded Rs. 2,58,336 with 12% interest and directed the insurer to pay it directly, having found the risk was covered by the insurance policy. On the insurer's appeal, the Calcutta High Court modified this, directing that the employer alone pay the compensation and separately seek reimbursement from the insurer, rather than the insurer paying the workman directly.

Decision Breakdown

The Supreme Court held that under Section 19 of the 1923 Act, a Commissioner has the power to determine the liability of an insurer and can make the insurer jointly and severally liable with the employer, relying on its own earlier precedent in Gottumukkala Appala Narasimha Raju. It reasoned that treating the insurer as liable only to reimburse the employer, rather than directly to the workman, would defeat the welfare purpose of the Act, since the workman would be left without recourse if the employer failed to pay for any reason, including financial incapacity. The Court restored the Commissioner's original order directing the insurer to pay the compensation directly to the workman, set aside the High Court's modification, and additionally awarded Rs. 50,000 in costs to be paid by the insurer to the workman.

Lesson Learnt

Under workmen's/employee's compensation law, an injured worker whose employer's liability is covered by insurance can recover compensation directly from the insurance company, not merely from the employer. The law is designed to ensure an injured worker is not left without a real, speedy remedy.

Official source (sci.gov.in)View Judgment (PDF)

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