Loading and Unloading Workers Are Employees Under MV Act And Entitled To Compensation For Accidents Under Employees Compensation Act: Kerala High Court

The Kerala High Court observed that loading and unloading workers are covered under clause (c) of the first proviso to Section 147(1) Motor Vehicles Act, 1988 (MV Act) and is thus entitled to benefits under the Employees' Compensation Act, 1923 (EC Act).

A Tippy Lorry Worker (Worker) was injured when a coconut tree fell on him while loading. The Employees' Compensation Commissioner (Commissioner) had granted compensation to the Worker along with treatment expenses.

The Court dismissed the Appeal filed by the Insurance Company challenging the award of the Commissioner. The Court emphasized that loading and unloading of goods is an integral part of the use of a goods carriage. The Court noted that the Worker was, therefore, covered under clause (c) of the first proviso to Section 147(1) of the MV Act.

The Bench of Justice C. Pratheep Kumar observed, “Therefore, loading and unloading of the goods transported in a goods carriage is to be treated as part and parcel of the purpose for which the goods carriage is intended to... In the above circumstances, unless and until the persons loading and unloading the goods in a goods carriage are also covered under clause (c) of the first proviso to Section 147(1) of the MV Act, the purpose of the aforesaid provision will not be served, in its true spirit. In this context, it is also to be noted that, the Employees Compensation Act is a welfare legislation intended to provide for the payment by certain classes of employers to their employees of compensation for injury by accident”.

Advocate John Joseph Vettikad appeared for the Appellant/UIICL (Second Opposite Party in Original Suit) and Advocate Anil Kumar K.P. appeared for the Respondents (Applicant/First Opposite Party in Original Suit).

A tipper lorry worker was injured when a coconut tree fell on him while loading the lorry. He filed a claim for compensation under the Employees' Compensation Act, 1923 (EC Act). The insurance company denied liability on the grounds that the policy did not cover the risk of loading and unloading workers. The Employees' Compensation Commissioner (Commissioner) awarded the worker compensation of Rs.1,04,000/- along with simple interest at the rate of 12% and Rs.2,55,962/- towards treatment expenses. Aggrieved the Appellant-Company approached the Court challenging the order of the Commissioner.

The Court framed the following issue:

“Whether the loading and unloading worker of the owner of the Tipper lorry comes under the coverage of the classes of employees covered under clause (c) of the first proviso to Section 147(1) of the M.V.Act, 1988?”

The Court noted that clause (c) of the first proviso to Section 147(1) of the MV Act, covers the risk of a loading and unloading worker. The Court observed that the vehicle was not in a stationary position when the worker was injured. The Court noted that the policy should cover the risk of loading and unloading workers. The Court referred to the decision in the case of Oriental Insurance Co.Ltd v Velayudhan and Others (M.A.C.A.No.2281 of 2010). The Court reiterated that per clause (c) of the first proviso to Section 147 of the MV Act, if the vehicle is a goods carriage, the employees/workmen being carried in the vehicle are covered statutorily. Thus, the Act-only policy will cover the risk of loading and unloading workers of the insured.

Additionally, the Court emphasized that the Employees' Compensation Act is a welfare legislation intended to provide compensation for injury by accident. The Court concluded that the deceased was entitled to compensation under the MV Act. The Court relied on the decision in the case of Mary v Mathew (2003 (1) KLT 592) and reiterated that even if the vehicle is parked or kept stationary or left unattended if the accident has any proximity to the use of the motor vehicle, the Insurance Company would be liable.

Accordingly, the Court dismissed the Appeal and affirmed the award.

Cause Title: United India Insurance Company Limited v Abdul Razaque O.V. (2023:KER:70095)

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