Gauhati High Court in The National Insurance Company Limited vs. Mr Omar Ali and Anr MFA/25/2019, on January 24, 2023 examined the question as to whether the insurance company can be directed to pay the compensation as the first instance awarded to a workman who is covered under the Employees’ Compensation Act, 1923(“EC Act”). The Court observed that provisions finding place in the Motor Vehicles Act, 1988 (“MV Act”) regarding the liability of insurer (insurance company) and his obligation to indemnify the insured have to be regarded in the nature of special provisions in so far as compensation for motor accident is concerned, whereas the provision in the EC Act are of general nature covering compensation for all types of accidents and therefore the special provisions finding place in the MV Act have to prevail over those incorporated in the EC Act in case of conflict in so far as compensation to a victim of motor accident and liability of an insured and insurer therefor are concerned.
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