Employees' Compensation and Liability of Insurance Company

Employees' Compensation and Liability of Insurance Company 

In case of NICL v. Thilagavathy [2019] GCtR 6372 (Madras), the argument made by insurance company was to deduct amount of Rs. 1 lacs from compensation. It was concluded that such argument would not lead to reduction in compensation. Further question raised by insurance company at page 4 was whether accident which takes place beyond geographical area in policy would lead to no liability or not. Ultimately, no recovery rights were granted nor any exoneration was granted to insurance company. The case is a clear answer whether in case of death, amount of liability can be limited to Rs. 2 lacs or not.