Case Law Analysis
|Gujarat High Court
Employer-Liability Policy Excludes Interest - Insurer Not Liable for Compensation Interest | Employees' Compensation Act, 1923 : Gujarat HC
Gujarat High Court ruled that an insurer cannot be compelled to pay interest on workmen's compensation when the employer-liability policy expressly excludes such liability. The decision overturns the Labour Court's interest award, reinforcing the primacy of policy terms. Employers and insurers must review policy wording to avoid unexpected interest obligations.