Gangtok, July 15 : In a significant judgment blending legal clarity and social sensitivity, the Sikkim High Court has awarded ₹21.89 lakh in compensation to the parents of a young man who died in a road accident last year, setting aside an earlier decision that had denied their claim.
The fatal accident occurred on April 20, 2023, when the deceased was travelling in a vehicle transporting sand from Rorathang to Bering for house repair work. The Motor Accident Claims Tribunal had initially rejected the compensation plea, reasoning that the victim was neither employed nor authorized to be in the vehicle, and had only hitched a ride.
However, the High Court, on examining the evidence afresh, determined that the deceased was engaged as a daily wage labourer to unload the sand. The vehicle owner’s written admission confirming this engagement proved decisive.
Legally, the Court ruled that this arrangement qualified the deceased as a “workman” under the Employee’s Compensation Act. It further observed that the insurance policy in question included coverage for such workmen through payment of an additional premium.
Socially, the judgment underscores the vulnerability of informal workers and the responsibility of employers and insurers to uphold their rights in the event of workplace mishaps.
The insurance company’s arguments—relying on a private investigator’s report to brand the deceased a gratuitous passenger—were rejected by the Court for lack of credible, direct evidence.
Holding the driver accountable for negligent driving, the Court directed the insurer to indemnify the vehicle owner and pay the bereaved family ₹21,89,100 as compensation. The sum will accrue interest at 9% per annum from the date the claim was filed, and will increase to 12% per annum if payment is delayed.
The judgment reaffirms that legal protections for workers extend beyond formal employment contracts and cover those working on daily wage and informal arrangements, ensuring their families are not left without recourse in times of tragedy.
