NIS Management Wins Employee Compensation Case, Insurer Directed to Pay ₹12.74 Lakh
NIS Management Limited has received a favorable court ruling in an employee compensation case related to a 2015 workplace accident. The Court in Bhubaneswar ordered that the liability for compensation payment lies with the insurer, New India Assurance Company Limited. The insurer is directed to deposit a principal amount of ₹12,74,066.00 plus 12% interest per annum from July 1, 2015. This ruling has no financial impact on NIS Management, as the entire compensation burden falls on the insurance company.
*this image is generated using AI for illustrative purposes only.
NIS Management Limited (Scrip Code: 544495) has secured a favorable ruling in an employee compensation case, as announced in a recent disclosure to the Bombay Stock Exchange. The Court of Sri B.M. Mohapatra, Commissioner for Employee's Compensation-cum-Joint Labour Commissioner in Bhubaneswar, has passed an order in favor of the company in a workplace accident compensation case.
Case Details
The case, filed under the Employee's Compensation Act, 1923, pertained to a workplace accident that occurred on July 1, 2015. The court's decision upholds NIS Management's position and confirms that the liability for compensation payment lies with the insurer, New India Assurance Company Limited.
Financial Implications
According to the court order, New India Assurance Company Limited has been directed to deposit the following:
| Compensation Component | Amount |
|---|---|
| Principal Amount | ₹12,74,066.00 |
| Interest | 12% per annum from July 1, 2015, until the date of payment |
It's important to note that this ruling has no financial impact on NIS Management Limited, as the entire compensation burden falls on the insurance company.
Significance of the Ruling
This decision is significant for NIS Management Limited as it:
- Absolves the company of any financial liability related to the workplace accident.
- Reinforces the importance of maintaining proper insurance coverage for workplace incidents.
- Provides closure to a case that has been ongoing since 2020 (E.C. Case No. 8 of 2020).
Company's Statement
In its disclosure, NIS Management Limited stated, "This order effectively upholds the position of M/s NIS Management Limited and confirms that the liability for payment of compensation lies with the insurer, M/s New India Assurance Company Limited."
The company has complied with the disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, providing transparency to its shareholders and the market at large.
As the case concludes in favor of NIS Management Limited, it demonstrates the company's commitment to addressing workplace safety issues and ensuring proper insurance coverage, which may positively impact investor confidence in the company's risk management practices.
Historical Stock Returns for NIS Management
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | +6.13% | -3.86% | -7.73% | -7.73% | -7.73% |
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