The Divisional Manager, Oriental Insurance Company Limited vs A. Selvakumari and Others

P. Devadass, J.—This is an Insurer''s Appeal on the ground of liability.

One Annadurai was employed as driver under the 6th respondent, namely Shanmugam. He died in an accident on 3.10.2007 out of and in the course of his employment. The dependants, namely, respondents 1 to 5 claimed compensation as against the the 6th respondent as well as his insurer/appellant before the Commissioner for workmen Compensation(Deputy Commissioner of Labour), Madurai in W.C. No.90 of 2008.

The Commissioner repelled the contention of the sixth respondent that he is not the employer and the insured is Joseph Xaviour. Ultimately, the Commissioner for Workmen Compensation computed the compensation at Rs. 3,70,840/-.

The contention of the appellant is that on the date when the accident took place, the vehicle stands in the name of Joseph Xaviour but also the policy also stands in his name. Hence the Insurance Company is not liable.

The learned counsel for the claimants repelled the said contention.

This aspect has been covered by the Judgement of the Hon''ble Supreme Court in Mallamma (Dead) by L.Rs. Vs. National Insurance Company Ltd. and Others, . Under similar circumstances, the Hon''ble Supreme Court held that though the ownership of the vehicle may be transferred from one person to another by way of sale, but even after the sale, when the earlier owner''s name continued in the insurance policy, the policy will not lapse, the policy is deemed to have been transferred in the name of the subsequent purchaser. In this case, the policy stands in the name of Joseph Xaviour. Thus, the appellant''s contention is unsustainable.

In the circumstances, this appeal fails and it is dismissed. The Commissioner for Workmen Compensation (Deputy Commissioner of Labour), Madurai is directed to disburse the entire compensation amount, less amount, if any already withdrawn.

Accordingly, the Civil Miscellaneous Appeal is disposed of. Consequently, connected Miscellaneous Petition is closed. No costs.