Supreme Court in Daivshala & Ors. vs. Oriental Insurance Co. Ltd. &Anr. (CA NO. 6986/2015) on July 28, 2025while allowing compensation to the family of the deceased employee who died in an accident while commuting to his workplace at midnight observed that a fatal accident during an employee’s commute to work falls within the scope of the Employees’ Compensation Act, 1923 (“EC Act“), provided a clear nexus exists between the accident and the employment. The Court emphasised that the scope of employment can reasonably extend to commuting, depending on the facts and circumstances. Upon interpreting the phrase “arising out of and in the course of employment” under Section 3 of the EC Act, the Court held that this provision is parimateria with Section 51E of the Employees’ State Insurance Act, 1948, which expressly treats commuting accidents as employment-related if the journey is tied to work obligations.
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