Section 14 of ECA : Section 14: Insolvency Of Employer

Explanation using Example

Imagine John, an employee of XYZ Corp, suffers an injury while working, and is entitled to compensation under The Employees Compensation Act, 1923. XYZ Corp had previously taken out an insurance policy with ABC Insurers to cover such liabilities. However, XYZ Corp faces financial difficulties and is declared insolvent. Under Section 14(1) of the Act, John's right to claim compensation does not vanish with the employer's insolvency. Instead, his claim against XYZ Corp transfers to ABC Insurers, who now must handle the claim as if they were the employer.

If ABC Insurers' coverage is less than what John is owed, per Section 14(2), he can file a claim for the...

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