15/07/2025
Sikkim High Court Awards ₹21.89 Lakh Compensation to Parents of Accident Victim, Terms Deceased as Workman
The Sikkim High Court has overturned a Motor Accident Claims Tribunal (MACT) decision and awarded ₹21,89,100 as compensation to the parents of a young man who died in a road accident, holding that he was a workman under the insurance policy and not a gratuitous passenger.
The appeal was filed by the victim’s parents under Section 166 of the Motor Vehicles Act, 1988, challenging the MACT’s rejection of their claim. The accident occurred on April 20, 2023, when the deceased was travelling in a vehicle from Rorathang to Bering. The Tribunal had dismissed the compensation claim, ruling that the deceased had merely taken a lift and was not working in the vehicle.
However, a single-judge Bench of Justice Bhaskar Raj Pradhan set aside the Tribunal’s findings. The Court noted that the deceased was hired as a daily wage labourer to unload five bags of sand being transported in the accident vehicle. The vehicle owner admitted in his written statement that the deceased used to assist in petty work and had boarded the vehicle to unload the sand meant for repairing his house drain. This admission, the Court observed, was sufficient to establish that the deceased was a workman.
The Court further held that under the Employee’s Compensation Act, 1923 (formerly Workmen’s Compensation Act), the term "workman" includes helpers, cleaners, and others engaged in work connected to a motor vehicle. Since the vehicle owner had also paid an additional premium for workmen liability, the insurance coverage extended to the deceased.
The Court rejected the Insurance Company’s argument, which relied on an investigator’s report claiming the deceased was a gratuitous passenger because he belonged to the same village as the driver. Justice Pradhan criticised the report as hearsay, noting that the investigator failed to examine or produce witnesses familiar with the facts.
The Court held that the accident occurred due to the rash and negligent driving of the vehicle’s driver, making the owner vicariously liable. Since the insurance policy was active, the insurer was directed to indemnify the owner.
The High Court awarded the parents ₹21,89,100 as “just compensation” with 9% interest per annum from the date of filing the claim petition. In case of default, the compensation would attract 12% annual interest until full payment.
[Prem Bahadur Rai v. United India Insurance Co. Ltd., MAC. App. No. 22 of 2024, judgment dated July 10, 2025]
