Workmen's Compensation

Act 1923

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 Workmen's Compensation
Act 1923
 Presented By

Name of the Student Roll Number

 Anita Agarwal 02
 Dhawal Ambani 03
 Gaurang Bharkhada 05
 Sanjog Devrukhkar 11
 Pradik Malik 21
 Arun Singh 50
 Varun Agarwal 61

 Presented To

Ms. Minal Jain

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(MFM – 2008-11 : SEM-II)
 What is Workers
Compensation Act 1923

Workmen's Compensation Act 1923 is central legislation

which provides for payment of compensation for injuries
suffered by a workman in the course of and arising out
of his employment according to the nature of injuries
suffered and disability incurred, where death results
from the injury, the amount of compensation is payable
to the dependants of the workmen. 3
 Objectives of the law…

 One of the oldest legislation of social security in India.

 a workman who dies or suffers disablement (partial or
total) due to accident is entitled to get compensation.

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Applicability of the Act

The Act applies to

 Railway servants
 Factories
 Mines
 Plantations
 Mechanically Propelled
Vehicles
 Construction works
 Certain other hazardous
Occupations
 Casual Workers E.g.
Drivers, Watchman, etc.
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 Nature of compensation

 The amount of compensation to be paid depends on

the nature of the injury and the average monthly
wages and age of workmen. The minimum and
maximum rates of compensation payable for death
(in such cases it is paid to the dependents of
workmen) and for disability have been fixed and is
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subject to revision from time to time
 Enforcement of the Act

 A Social Security  It is also responsible

Division has been set for enforcing this Act.
up under the Ministry The Act is administered
of Labour and by the State
Employment , which Governments through
deals with framing of Commissioners for
social security policy Workmen's
for the workers and Compensation.
implementation of the
various social security
schemes.
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 Provisions of the Act

An employer is liable to pay compensation

(i) If personal injury is caused to a workman by

accident arising out of and in the course of his
employment

(ii) If a workman employed in any employment

contracts any disease, specified in the Act as an
occupational disease peculiar to that employment.

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 The employer is not liable to pay
Compensation in the following cases
(i) If the injury does not result in the total or partial disablement of the
workman for a period exceeding three days.

(ii) If the injury, not resulting in death or permanent total disablement, is

caused by an accident which is directly attributable to:-

(i) the workman having been at the time of the accident under the
influence of drink or drugs; or

(ii) the willful disobedience of the workman to an order expressly

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 any safety

guard or other device which has been provided for the purpose
of securing safety of workmen.
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 Employment disease

 Employer is liable if a workman contracts any specified

occupational disease, while he is in service of employer for at
least 6 months. [section 3(2)].

Compensation payable –
even if no fault of employer

 The compensation is payable even when there was no fault of

employer. In New India Assurance Co. Ltd. v. Pennamna Kuriern -
(1995) 84 Comp. Cas. 251 (Ker HC DB), claim of workmen for
compensation under Motor Vehicle Act was rejected due to
negligence of employee, but compensation was awarded under
Workmen‘s Compensation Act on the principle of no fault‘.
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Compensation payable even if
worker was careless…
Compensation is payable even if it is found that the
employee did not take proper precautions. An
employee is not entitled to get compensation only if

(a) he was drunk or had taken drugs

(b) he willfully disobeyed orders in respect of safety
(c) he willfully removed safety guards of machines.

However, compensation cannot be denied on the

ground that workman was negligent or careless.
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 Who are dependent persons?

Sec. 2(1) (d) :

(1)widow, minor legitimate or adopted son, an
unmarried legitimate or adopted daughter, or a
widowed mother
(2) if wholly dependent, - son, daughter who has
attained the age of 18 years, and who is infirm and
(3) if wholly / partly dependent :

 Widower
 a parent other than widowed mother
 Minor illegitimate son, unmarried illegitimate daughter
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Continued…

 Daughter legitimate or
illegitimate or adopted if
married and a minor or if
widowed and a minor
 Widowed daughter in law
 A minor child of a
pre=deceased son
 A minor child of a pre-
deceased daughter where no
parent of the child is alive
 A paternal grandparent, if no
parent of the workman is alive
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 Appointment of Commisioner
 The State Government may, by notification in the
Official Gazette, appoint any person to be a
Commissioner for Workmen's Compensation for such
area as may be specified in the notification.

 Any Commissioner may, for the purpose of deciding

any matter referred to him for decision under this Act,
choose one or more persons possessing special
knowledge of any matter relevant to the matter under
inquiry to assist him in holding the inquiry.
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 Compensation
 In case of death: 50% of the monthly wage of the deceased
workman, multiplied by the relevant factor or Rs. 20,000; whichever
is more.

2. In case of total permanent disablement: 60% of the monthly wage,

multiplied by the relevant factor: or Rs. 24,000; whichever is more.

3. In case of partial permanent disablement: The compensation is a

percentage of that payable in the case of total permanent
disablement. The earning capacity is determined by a qualified
medical practitioners.

4. In case of (total or partial) temporary disablement: A sum equal to

25% of the monthly wages of the workman shall be paid half-
monthly. The minimum rate of compensation is proposed to be
raised from 50,000 to Rs. 80,000 for death and from Rs.60,000 to
Rs. 90,000 in case of permanent/total disablement. 15
Example

Pratap Narain
Singh Deo Vs
Sriniwas Sabata :
(1976):

a carpenter lost his

left hand, it was held
by the court that he
suffered from total
disablement – as he
would not get any job
of carpentry – as
now he cannot do
carpentry. 16
 Defaulting the compensation
Where an employer is in default in paying the
compensation due under this Act, within one
month from the date it fell due, the Commissioner
shall:

a) Direct that the employer in addition to the

amount of arrears, pay simple interest there on at
the rate of 12% per annum or on such higher
rates.

b) Commissioner has the power under the Act to

impose penalty and the interest on the cleared
amount as per the provision of the act.

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 Exceptions – when compensation
is not available :

 In case of Injury which does not result in total or

partial disablement of workman for a period
exceeding 3 days

 Injury caused by an accident directly attributable to

workman under influence of drinks or drugs willful
disobedience of express orders for safety willful
removal of safety guard or device. [Even if such
case, if the workman dies or suffers permanent total
disablement, the employer will be liable].

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 Claims

 If any question arises in any proceedings under this Act as

to the liability of any person to pay compensation (including
any question as to whether a person injured is or is not a
workman) or as to the amount or duration of compensation
(including any question as to the nature or extent of
disablement), the question shall, in default of agreement, be
settled by a Commissioner.

 No Civil Court shall have jurisdiction to settle, decide or deal

with any question which is by or under this Act required to be
settled, decided or dealt with by a Commissioner or to
enforce any liability incurred under this Act.
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Notice

The State Government may, by

notification in the Official Gazette,
direct that every person employing
workmen, or that any specified class
of such persons, shall send at such
time and in such form and to such
authority, as may be specified in the
notification, a correct return
specifying the number of injuries in
respect of which compensation has
been paid by the employer during
the previous year and the amount of
such compensation together with
such other particulars as to the
compensation as the State
Government may direct. 20
 Failure of Notice

 Whoever,
 fails to maintain a notice-book which he is required to
maintain;
 or fails to send to the Commissioner a statement which
he is required to send;
 or fails to send a report which he is required to send;
 or fails to make a return which he is required to make,
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 shall be punishable with fine.
THANK
YOU!
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