Under the Employees’ Compensation Act, the employer alone bears interest liability; the insurer covers compensation only.

The claimant, an estate worker, sustained fractures to his left lower limb when a tree branch fell on him while he was working on 17 September 2018.

He claimed that the injuries impaired his ability to work and sought compensation under the Employees’ Compensation Act, 1923.

The Commissioner awarded Rs.47,358 with interest at 12% per annum, assessing loss of earning capacity at 5%.

The claimant appealed under Section 30(1), seeking enhancement on the grounds that the disability and his wages had been assessed too low.

Whether the Commissioner’s assessment of the claimant’s loss of earning capacity at 5% warranted appellate interference.

Whether the monthly wages used to calculate compensation should be revised under the applicable statutory notification.

Whether the insurer was liable for interest and for medical expenses beyond the policy limit.

The Court applied the Employees’ Compensation Act, 1923, under which compensation for loss of earning capacity is calculated by reference to monthly wages, the applicable statutory factor, and the assessed percentage of loss.

For this accident, it applied Notification No. S.O. 1258(E), dated 31 May 2010, fixing the relevant monthly wage figure at Rs.8,000.

It also applied the policy’s medical-expense limit of Rs.25,000 and held that the insurer was not liable for interest, which was payable by the employer.

The Court found no basis to disturb the Commissioner’s 5% assessment of loss of earning capacity or the findings on the accident and employment relationship.

It nevertheless held that the wage figure required correction under the 2010 notification.

Retaining the relevant factor and 5% assessment, it recalculated the loss-of-earning component as Rs.23,850.

Although the recalculated components initially totalled Rs.98,333, the Court limited recoverable medical expenses to Rs.25,000 under the policy and noted the claimant’s statement that the employer had paid the treatment costs.

It therefore fixed the recoverable compensation at Rs.48,850 and assigned interest liability to the employer alone.

The Court modified the award by increasing compensation from Rs.47,358 to Rs.48,850, with interest at 12% per annum; the employer was liable for the interest, while the insurer was liable only for the compensation amount as re-determined, subject to the policy terms.

The Commissioner’s award otherwise remained unaltered.