The workmen’s compensation act, 1923

Background Object of the act Definition of dependant Peron liable to pay compensation Conditions for receiving compensation injuries Amount of compensation Time of payment of compensation Powers of commissioner for workmen ‘s compensation Report of fatal accident ‘procedure for claiming compensation offences

Agenda

A kind of social security scheme for the workers of this country.

“The growing complexity of industry in the country, with the increasing use of machinery and consequent danger to the workmen, along with comparative poverty of the workmen themselves render it is advisable that they should be protected, as far as possible from hardships arising from accidents”

Gazette of India, 1992

background

The object of act is to provide for the payment of compensation by certain employers to their workmen for injury caused to them by accident while in employment. If a workmen contracts an occupational disease while in employment, it is also treated under the Act as injury caused by accident ( preamble &under S.3)

Object of the workmen’s compensation act, 1923.

Means any of the following relatives of a deceased workman, namelya) A widow a minor legitimate or adopted son, and unmarried

legitimate or adopted daughter, or a widowed mother; andb) If wholly dependent on earning s of the workman at the time of

his death, a son or a daughter who has attained the age of 18 years and who is infirm;

c) If wholly or par dependant on the earnings of the workman at the time of his death;

1. A widower2. A parent other than a widowed mother3. A minor illegitimate son, an unmarried illegitimate daughter or

a daughter illegitimate or illegitimate or adopted if married and a minor or if widowed & minor,

4. A minor brother or unmarried sister or a widowed sister if a minor ,

dependent

5) a widowed daughter in law,6) a parental grandmother if no parent of the workmen is

alive.

Dependent

Every employer:-i. Employing persons listed in schedule II to the Act; or ii. Carrying on an occupation listed in schedule III to the

Act.

S.s2(1) (n) & 3.

The person liable to pay compensation under the act

i. Workmen employed in factories, mines, transport establishments, construction works, railways, plantations, ships and hazardous occupations

ii. Person listed in schedule II to the Act;iii. Person employed in occupations listed in schedule III

to the Act.

under section 2(1)(n) and 3

The following persons are liable to receive compensation under the Act :-

If the accident arose out of and in the course of his employment there must be a causal relationship between the accident and the employment. )

That means the accident must occur while the workmen is in employment & must also be connected with his employment .

Conditions for receiving compensation

Temporary Total Disability: Seriously injured person temporarily hospitalized/completely impaired, but expected to regain full function

Temporary Partial Disability: Following the period of “Temporary Total Disability” seriously injured person recovers and regains some (but not all) ability to participate in formal activities

Permanent Total Disability: Seriously injured person with a total bodily impairment that is expected to remain for a lifetime

Permanent Partial Disability: Injured person retains a substantial bodily function but the injury is expected to remain for a lifetime

injuries are broadly classified into

1. If the injury does not result in total or partial disablement of the workmen for a period exceeding 3 days;

2. If the injury does not result in the death of workmen and is caused by an accident which is directly attributable to:-

i. The workman having been at the time thereof under the influence of drink or drugs, or

ii. The disobedience of the workman to an orderly expressly given, or to a rule expressly framed, for the purpose of securing the safety of workman, or

iii. The willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman.

under section 3(1)

Employer is not liable to pay compensation for injury to a workman under following circumstances:

Injury to a workman result in his death: the amount of compensation payable to his dependants is an amount equal to 50% of the monthly wages of the deceased workman multiplied by the figure ranging from 228.54 to 99.37(depending upon the age of the deceased workman) or an amount of Rs.80,000, whichever is more. [S.4(1) (a)}

Injury to a workman results in permanent total disablement: the amount equal to 60% of the monthly wages of the injured workman multiplied by a figure ranging from 228.54 to 99.37( depending upon the age of the injured person) or an amount of Rs.90,000, whichever is more.

If monthly wages of injured workman exceeds Rs. 4,000, his monthly wages for the purpose of calculating the compensation shall be deemed to be Rs. 4,000 only.

[S.4(1) (b)]

AMOUNT OF COMPENSATION.

Injury of a workman results in his temporary total disablement / temporary partial disablement : receive in form of a half monthly payment. It is determined with reference to the injury & it is equal to 25% of the monthly wages of the workman. Maximum period workman can receive is 5 years. [S.4(1) (d)]

Injury of a workman due to his permanent partial disablement : the amount of compensation he is entitled to receive is a % of the compensation payable in case of permanent total disablement. It is determined with reference to the extent of loss of earning capacity caused by injury & is a lump sum payment. [S.4(1)(c)]

Amount of compensation

The employer must pay the compensation as soon as it falls due .i.e. as soon as the injury is caused to a workman. If he delays the payment of compensation beyond 1 month from the date it fell due, he may be saddled with simple interest @ of 12% p.a. plus penalty up to 50% of the amt of compensation.

time of payment of compensation

In case of lump sum compensation to a women or a person under a legal disability: Employer must deposit to the commissioner for workmen’s compensation.

In case of payment of half- monthly compensation to a person under a legal disability: it is open to commissioner of workmen’s compensation to make payment to any dependent person of workman or a any other person best fitted to provide for welfare of the workman.

Powers of the commissioner for the workmen's compensation

If any accident occurs on the premise of any employer which results in death of a workman or serious bodily injury to a workman, the employer must, within 7 days of the death or serious bodily injury, send in the prescribed form a report to the commissioner for workmen’s compensation giving the circumstances attending the death or serious bodily injury.

Report of fatal accidents

1) An application for claiming compensation payable under the Act has to be made to the commissioner for workmen’s compensation in the prescribed form.

2) Before filing the application the workman has to give notice of the accident to the employer containing the details of the accident.

3) Before filing the application the workman has also to submit himself for medical examination if he is required to do so by the employer.

4) The application has to be made within 2 years of the occurrence of the accident or within 2 years from the date of death.

5) If any applicant is poor, the commissioner may exempt him from paying the application fees.

Procedure for claiming compensation payable under the act

6) The commissioner can take assistance of any person possessing special knowledge of any matter relating to the case for deciding the application.

7) The commissioner can recover the amount payable by any person under the act as an arrear of land revenue.

under Ss. 8,10, 11, 19.

Continued……..

If any person-a. Fails to maintain a notice-book under section 10(3), orb. Fails to send a statement under section 10 A(1), orc. Fails to send report under section 10 B, ord. Fails to send return under section 16,He would be punished with fine up to Rs.5,000.

offences