Areca plucker’s compensation to be borne by insurer as well as employer, says HC

NT Correspondent

Bengaluru: The compensation payable to a person who was injured while plucking areca nuts in a farm should be borne by both the insurance company and the employer, the High Court of Karnataka has ordered.

“The respondent No.2/ insurance company is liable to pay a sum of Rs1,48,928 to the petitioner. The respondent No.1 is liable to pay the remaining amount of Rs.1,50,452,” Justice CM Joshi said in his recent judgement on an appeal filed in 2019.

Vasu, a resident of Koppa in Chikmagalur district filed an appeal in the HC in 2019 against the Hoovinahaklu Estate and the United India Insurance. It was directed against the judgement and award given by the senior civil judge, Koppa.

The court had directed that a sum of Rs.1,89,881 be granted as compensation to Vasu. He sought enhancement of it. Vasu was plucking areca nuts from the trees at the estate on December 23, 2014.

At around 12 pm, the areca tree which he was climbing broke and he fell down. He sustained injuries on both hands, face, head and other parts of the body.

He was shifted to a government hospital and later at Nanjappa Hospital in Shivamogga for treatment. He claimed to have spent Rs.1.5 lakh on treatment and sought compensation.

The estate had a Workmen’s Compensation Policy with the Insurance Company covering 67 employees. The insurer claimed that the monthly wage paid to Vasu was Rs.2,074 but the tribunal had calculated it at Rs.6,224 per month based on the premium paid.

The HC in its judgement acknowledged this fact and said that the insurer was liable to pay compensation up to Rs.6,224 premium paid and the rest of the compensation has to be borne by the estate.

“The component of the compensation payable by the respondent No.2 (insurer) has to be restricted to Rs.6,224/- only. The rest of the component of the compensation has to be borne by the respondent No.1 (estate).”

Further the estate was liable to pay for medical expenses with interest, the HC said. The HC calculated the compensation payable by the insurer at Rs.1,48,928 based on the premium paid.

It calculated the compensation payable by the employer estate at Rs.42,496. In addition the employer was directed to pay ‘medical expense’ of Rs.1,07,956. Modifying the lower court order, the HC directed that the compensation be paid along with interest of 12% per annum.