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Workmens

compensation act1923

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Objectives

The Act, aims to provide workmen and/ortheir dependents some relief orcompensation in case of accidents arisingout of and in the course of employment and

causing either death or disablement (partialor total) of workmen.

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Commissioner

Sec.2(1)(b)

Commissioner means a Commissionerfor Workmens Compensationappointed under Sec.20.

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Dependant[Sec.2(1)(d)] Dependant means any of the following relatives of adeceased workman, namely:

(I) a widow, a minor legitimate or adopted son and unmarriedlegitimate or adopted daughter, or a widowed mother.

(II) if wholly dependant on the earnings of the workman at the

time of his death, a son or a daughter who has attained theage of 18 years and who is infirm.(III) And any of the following were wholly or partly dependent

on the workman at the time of his death a widower, a parent other than a widowed mother, a

minor illegitimate son, a unmarried illegitimate daughteror a daughter legitimate or illegitimate or adopted ifmarried & a minor or if widowed & minor, a minor brother

or an unmarried sister or a widowed sister if a minor, awidowed daughter-in-law, a minor child of pre-deceasedson & daughter where no parent of the child is alive & apaternal grandparent if not the parent of the workman isalive.

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Disablement

Disablement means loss of capacity towork or to move. Disablement ofworkman may result in loss orreduction of his earning capacity. In thelater case, he is not able to earn asmuch as he used to earn before hisdisablement.

Disablement may be (1) partial, or (2)total.

Further it may be (i) permanent, or (i)

temporary. 5

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Partial disablement-2.1(g)

This means any disablement as reduces theearning capacity of a workman as a result ofsome accident. It may be temporary orpermanent.

Temporary partial disablement means anydisablement as reduces the earning capacity ofa workman in any employment in which he wasengaged at the time of the accident resulting inthe disablement.

Permanent partial disablement is one whichreduces the earning capacity of a workman ineveryemployment which he was capable ofundertaking at that time of injury.

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Total disablement-2.1(l) Total disablement means such

disablement, whether of a temporary or

permanent nature, as incapacitates aworkman for all work which he was capableof performing at the time of the accidentresulting in such disablement

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Employers liability for compensation

Section 3

1. accident 2. occupational disease (schudle III)

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SECTION 3(1)

If personal injury is caused to a workmanby accident arising out of and in thecourse of his employment, his employershall be liable to pay compensation inaccordance with the provisions of this

Chapter II of workmen's compensation act1923.

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Employment

Personal injury

Accident Arising out of and in the course of

employment

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OCCUPATIONAL DISEASES section 3(2)

Part A of schedule III ( no time limit)

Part B of schedule III ( service not less than 6

months)Part C of schedule III ( service one or more

employer and C.G. may specify the timelimit)

provided (a) less than the time period

(b) arising out and in the course ofemployment + accident

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Proportionate liability Section 3 (2 A)

If a workman employed in any employmentspecified in Part C of Schedule III contracts anyoccupational disease peculiar to (belong to) that

employment, the contracting whereof is deemedto be an injury by accident within the meaning ofthis section, and such employment was undermore than one employer, all such employers

shall be liable for the payment of thecompensation in such proportion as theCommissioner may, in the circumstances, deem

just.

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Section 3(4)

no compensation shall be payable to aworkman in respect of any disease unlessthe disease is directly attributable to aspecific injury by accident arising out ofand in the course of his employment.

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Section 3 (5) alternative suit or claim Nothing herein contained shall be deemed to confer any rightto compensation on a workman in respect of any injury if hehas instituted in a Civil Court a suit for damages in respect ofthe injury against the employer or any other person; and no

suit for damages shall be maintainable by a workman in anycourt of law in respect of any injury -

(a) if he, has instituted a claim to compensation in respect ofthe injury before a Commissioner; or

(b) if an agreement has been come to between the workmanand his employer providing for the payment of compensationin respect of the injury in accordance with the provisions ofthis Act.

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Employer is not Liable For Compensationsection 3(1)

(a) in respect of any injury which does not result in the total orpartial disablement of the workman for a period exceedingthree days;

(b) in respect of any injury, not resulting in death or permanenttotal disablement, caused by an accident which is directlyattributable to - (i) the workman having been at the timethereof under the influence of drink or drugs, or

(ii) the willful disobedience of the workman to an orderexpressly given, or to a rule expressly framed, for the

purpose of securing the safety of workmen, or(iii) the willful removal or disregard by the workman of anysafety guard or other device which he knew to have beenprovided for the purpose of securing the safety of workmen,willfully disregard or removed the same.

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Scope of arising out of and in the course of employment

R.B.Moondra and Co. v. Mst. BhanwariA.I.R 1970 ( patrol tank leak case)

Smt. Koduri v. Polongi Atchamma 1969(carring quarry materialhiting of

rabbit.no compnsation)

In Mackinnon Mackenzie and Co. Ltd. v.Miss Velma William AIR 1964 ( suicidecase)

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Doctrine of notional extension

The period of going to or returning fromemployment are generally excluded and arenot within the course of emplooyment.

Travelling to and from is prima facie not inthe course of employment but there may bereasonable extention in both the time and

place and the workmen may be regarded asin the course of his employment even thoughhe had not reached or had left his employers

premises.

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Judicial understanding St Helens Colliery Co. ltd. Hewlston

(colliery comp. case)

Works Manager Carriage and WagonShop, EIR v Mahabir AIR 1954

( crushed by train .lags amputated)

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Some special features

Wilful disobedience of order or safety

devices proved by employer Relinquish the right of Compensation

under agreement ( null and void)

Contributory negligence (not applicable)

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Amount of compensationSection 4

Distributation of compensation

Section 8

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Section 4.Amount of Compensation Subject to the provisions of this Act, the amount of compensation shall be

as follows, namely:--

1.Where death results from the injury;:-an amount equal to [fifty per

cent] of the monthly wages of the deceased workman multiplied by therelevant factor or an amount of one lakh and twenty thousand rupees],whichever is more;

2.Where permanent total disablement results from the injury:-anamount equal to [sixty per cent] of the monthly wages of the injuredworkman multiplied by the relevant factor; or an amount of [One Lakha nd

Forty Thousand Rupees whichever is more;

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Explanation I- For the purposes of clause (a) andclause (b), "relevant factor" in relation to a workmanmeans the factor specified in the second column ofSchedule IV against the entry in the first column of that

Schedule specifying the number of years which are thesame as the completed years of the age of the workmanon his last birthday immediately preceding the date onwhich the compensation fell due;

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Procedure for calculation Higher the age Lower the compensation

Relevant factor specified in second column of Schedule IV giving slabsdepending upon the age of the concerned workman.

Example : In case of death:

Wages Rs.3000 PM Age 23 years

Factor as schedule IV : 219.95 * 1,500

Amount of compensation Rs.3,29,935.00

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Example For Permanent Total Disablement

In case of permanent total disablement resulting fromthe injury, the amount of compensation shall be 60% ofthe monthly wages of the injured workman multipliedby the relevant factor or Rs 90,000/- thousandwhichever is more.

For the above example the compensation would be

60* 3000* 207.98 = 3,74,365100

Since Rs 3,74364 is more than 90,000 the amount ofcompensation payable should be Rs 3, 74364

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3. Where permanent partial disablement results fromthe injury:-

i) in the case of an injury specified in Part II of Schedule I, suchpercentage of the compensation which would have been payable in

the case of permanent total disablement as is specified therein asbeing the percentage of the loss of earning capacity caused by thatinjury, and

(ii) in the case of an injury not specified in Schedule I, suchpercentage of the compensation payable in the case of permanent

total disablement as is proportionate to the loss of earning capacity(as assessed by the qualified medical practitioner)permanentlycaused by the injury.

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More than one injury

Where more injuries than one are causedby the same accident, the amount ofcompensation payable under this headshall be aggregated but not so in any caseas to exceed the amount which would

have been payable if permanent totaldisablement has resulted from theinjuries.

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4.Compensation For Temporary Disablement(Total or Partial)

If the temporary disablement, whether total or partialresults from the injury, the amount of compensation shallbe a half monthly payment of the sum equivalent to 25%of the monthly wages of the workman to be paid in

accordance with the provisions. The half monthly payment shall be payable on the

sixteenth day from the date of disablement1. In cases where such disablement lasts for a period of28 days or more compensation is payable from the date

of disablement2. In other cases After the expiry of a waiting period ofthree days from the date of disablement.

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Compensation[sec.8] The compensation payable for death and The compensation payable

to a woman or person of legal disability shall be through thecommissioner only.

Employer can make advance payment directly to dependents in caseof death equivalent to three months salary of the deceased person.

Employer is exonerated from his liability if he deposits thecompensation amount with the commissioner within the stipulatedtime.

The commissioner shall call all dependents of the deceased and

determine the method for distribution of compensation among them. If no dependents are found then amount shall be refunded to the

employer.

On request by the employer the commissioner shall furnish thedetails of disbursement.

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THANK YOU

Presented By:

Mr.Shamsuddin, ALS, AUR

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