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Supreme Court of India · body

2003 DIGILAW 949 (SC)

P. J. NARAYAN v. Union Of India

2003-08-08

H.K.SEMA, S.N.VARIAVA

body2003
ORDER This writ petition is for the purposes of directing the insurance company f to delete the clause in the insurance policy which provides that in cases of compensation under the Workmens Compensation Act, 1923, the insurance company will not be liable to pay interest. We see no substance in the writ petition. There is no statutory liability on the insurance company. The statutory liability under the Workmens Compensation Act is on the employer. An insurance is a matter of contract between the insurance g company and the insured. It is always open to the insurance company to refuse to insure. Similarly, they are entitled to provide by contract that they will not take on liability for interest. In the absence of any statute to that effect, insurance companies cannot be forced by courts to take on liabilities which they do not want to take on. The writ petition is dismissed. No order as to costs.