Training For Staff At Oil/LPG Companies Is Essential: Orissa HC Orders 2L Compensation For Labourer Injured Due To Gas Leak

Update: 2024-09-09 04:03 GMT

The Orissa High Court has observed that training for the staff working at Oil/LPG companies is essential to ensure health and safety on site especially when they are carrying dangerous goods, such as gas bottles and cylinders.

The Court has directed ICICI Lombard General Insurance to pay ex-gratia compensation of Rs.2,00,000 for the injuries sustained by the petitioner caused due to gas accident.

The Bench of Justice SK Panigrahi held, “It is imperative that the training for staff is essential to ensure health and safety onsite especially when they are carrying dangerous goods, such as gas bottles and cylinders. It is very common in urban and semi- urban areas that a staff of the LPG dealer carries four to five cylinders loaded in a bicycle or in a two-wheeler moped which seem to be hugely unsafe from the point of view of transportation and danger of leakage of the chemical. The applicable safety regulations and the responsibilities of the worker/contactor is of paramount importance. The hazard training like how fires start, ignition sources, asphyxiation hazards, toxic and corrosive gases, how oxidizers create fires and explosions, chemical reactions and incompatible substances are hardly imparted to workers as well as the consumer of the LPG.”

Advocate Bijaya Kumar Nayak appeared for the Petitioner whereas Advocate Sanjay Mukherjee appeared for the Respondents.

The Petitioner filed a writ petition seeking a direction from the Court for payment of ex-gratiacompensation amount for the injuries sustained by the Petitioner caused due to a gas accident on account of the blast of an LPG cylinder.

The petitioner was a daily labourer and was working in the house of the late Santosh Kumar Sahoo. In the house where the Petitioner was working, there was a fire accident due to leakage of gas from the cylinder. The fire spread in the house damaging the household properties. Late Santosh Kumar Sahoo and the petitioner while trying to extinguish the fire, were seriously injured. While under treatment, the late Santosh Kumar Sahoo passed away.

As per the conditions of the insurance policy, ex-gratia compensation is to be paid to the victims of the accident, who sustained burn injuries caused due to leakage of gas from the cylinder. The petitioner was the victim of the gas accident and, hence, was entitled to receive the ex-gratia compensation amount of Rs. 2,00,000/- which is to be paid by the ICICI Lombard General Insurance (‘ICICI’). Hence, the petitioner has submitted his application to Opposite Party No. 3 i.e. the Gas Agency. No reply was received by the Petitioner.

The Court had previously directed the Gas Agency to communicate to the ICICI about the incident within 15 days but they failed to do so. “This prolonged inaction has caused unnecessary delays, which not only hinders the administration of justice but also prejudicial to the interests of the party’s awaiting resolution. Given this scenario, it is imperative to proceed with an ex-parte judgment.”, the Court said.

The Court directed, “Given the dire circumstances of this incident, it is evident that the petitioner not only did suffer severe physical injuries but also endured significant emotional trauma. Moreover, the petitioner has faced substantial medical expenses and the long-term consequences of the injuries sustained during the incident…Considering the physical, emotional, and financial toll on the petitioner, it is only just and fair that compensation be granted. In light of the facts and circumstances of the present case, this Court hereby directs the Opposite Party No.1 to pay ex-gratia compensation Rs.2,00,000 for the injuries sustained by the petitioner caused due to gas accident within a period of two months.”

The Court also remarked that the Oil/LPG companies in cases like this where the human cost of an LPG cylinder explosion was incalculable behave like hardcore litigants ignoring the fact that the matter does not fall in the realm of adversarial litigation. It said that one can imagine how the thick flames engulf the surroundings and human beings just reduce to ashes or sometimes escape death and end up with deformities.

It also said that these oil marketing companies must take comprehensive Insurance Policy under the ‘Public Liability Policy for Oil Industries’ to provide relief to the affected persons in case of LPG-related accidents.

“Many victims of gas leakage mishaps are unaware of the norm that gas companies are liable to compensate them for their loss under the aforementioned scheme. The ignorance about the insurance cover often makes the accident victim or their family members lose the benefit of the claim. It is, therefore, imperative that the Ministry being the guiding angel of the OMCs should ensure that the information about the insurance coverage be circulated properly through mass media and the said insurance coverage related information can be printed at the back side of the money receipt issued to the customers.”, it emphasized.

Accordingly, the Court allowed the writ petition.

Cause Title: Sushant Behera v. The General Manager, ICICI Lombard General Insurance Co. Ltd. & Ors.

Appearances:

Petitioner: Advocate Bijaya Kumar Nayak

Respondents: Senior Advocate Shantanu Kumar Sarangi, Advocate Srinivas Patnaik

Click here to read/download the Judgment


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