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Workmans compensation

Workmans compensation

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Published by: subhasishmajumdar on Dec 26, 2009
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11/24/2010

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INDUSTRIAL LAWS
COMMERCIAL & INDUSTRIAL LAW 
A 198
3.3. The Workmen’s Compensation Act, 1923
INTRODUCTION
The passing of Workmen’s Compensation Act in 1923 was the first step towards social securityof workmen. The theory of this act is that “ the cost of product should bear the blood of theworkman”. This Act provides compensation to certain classes of workmen by their employersfor injury, which may be suffered, by the workmen as result of an accident during the course of employment.
Object
To provide Compensation to Workmen for accidental injury and occupational diseases arisingduring and in the course of employment.
Applicability of Act
This Act is applicable to all employments in which the ESI Act is not applicable.
BASIC CONCEPTS
“Dependent” means any of the following relatives of a deceased workman, namely :—(i)A widow, a minor legitimate or adopted son, and unmarried legitimate or adopteddaughter, or a widowed mother; and(ii)If wholly dependent on the earnings of the workman at the time of his death, a son or adaughter who has attained the age of 18 years and who is infirm;(iii)If wholly or in part dependent on the earnings of the workman at the time of his death,(a)a widower,(b)A parent other than a widowed mother,(c)A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimateor illegitimate or adopted if married and a minor or if widowed and a minor,(d)A minor brother or an unmarried sister or a widowed sister if a minor,(e)A widowed daughter-in-law,(f)A minor child of a pre-deceased son,(g)A minor child of a pre-deceased daughter where no parent of the child is alive, or(h)A paternal grandparent if no parent of the workman is alive.
Explanation :
For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause(iii), references to a son, daughter or child include an adopted son, daughter or childrespectively;
 
A 199
COMMERCIAL & INDUSTRIAL LAW 
”Employer”
Includes any body of persons whether incorporated or not, and any managing agent of anemployer, and the legal representative of a deceased employer, and, when the services of aworkman are temporarily lent or let on hire to another person by the person with whom theworkman has entered into a contract of service or apprenticeship, means such other personwhile the workman is working for him;
”Wages”
Includes any privilege or benefit which is capable of being estimated in money, other than atravelling allowance or the value of any travelling concession or a contribution paid by theemployer a workman towards any pension or provident fund or a sum paid to a workman tocover any special expenses entailed on him by the nature of his employment;
”Workman”
Means any person (other than a person whose employment is of a casual nature and who isemployed otherwise than for the purposes of the employer’s trade or business) who is - (i) arailway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), notpermanently employed in any administrative, district or sub-divisional office of a railway andnot employed in any such capacity as is specified in Schedule II.
Disablement
Total disablement Partial disablement Incapacitates workman for all work which he was capableof doing at the time of accident Temporary Permanent Reduces earning capacity of workmanin any employment in which he was engaged at the time of accidentReduces earning capacity of workman in every employment in which he was engaged at thetime of accident.
Main Provisions of the Act
Injury / Diseases arising out of and in course of employment are payable –The term ‘arising out of and in the course of employment’ means that Compensation is payableonly in those injury/diseases where the employment is the immediate and proximate cause of the said injury/disease. In other words, the injury/disease would not have occurred had theworkman not been employed in the particular employment.Compensation payable – The Workmen’s Compensation payable as per the act is as under :Compensation1.Death due to injury 50% of wages * Relevant factor OR Rs 80,000/- , whichever is more,2.Permanent total disablement due to injury 60% of wages * Relevant factor ORRs 90,000/- , whichever is more,3.Permanent Partial disablement due to injury % of compensation as is payable in (ii) or %of compensation proportionate to loss of earning capacity,
 
INDUSTRIAL LAWS
COMMERCIAL & INDUSTRIAL LAW 
A 2004. Temporary Disablement 25% of wages paid half monthly,5.Occupational disease Occupational disease to be treated as injury by accident andcompensation as applicable in the cases of injury are payable.Following points are to be noted in calculation of compensation :(a)Wages to be actual or Max Rs 4000/- per month,(b)Relevant factor are given in Schedule III of the Act,(c)Employee not eligible for compensation when he/she has filed a Civil Suit against theemployer.Compensation not payable : Compensation under this Act is not payable whenThe disablement due to injury is less than 4 days.The employee was under the influence of drugs/alcohol at the time of accident.Workman willfully disobeys any safety rule.Workman willfully removes/disregards any safety guard/ equipments.Workman has filed a Civil suit against the employer for claim of compensation.Workman has refused to get himself medically examined cost of which is borne by theemployer.
Payment of Compensation
The Compensation payable under the Act is to be made by deposit to the Commissioner of Workmen’s Compensation who will distribute the same to workmen or his dependents.However, amount equal to 3 months wages can be paid directly to the dependents in cases of death of workman, provided the said amount is less than the total compensation payable toworkman.Report of death and serious bodily injury – should be given within 7 days of the death/ serious bodily injury to the Commissioner of Workmen’s Compensation.Medical Examination –The employer should get the medical examination of the workmanwho has made a claim for compensation, within 3 days of receipt of claim.Workmen’s Compensation Rules, 1924:Object:The objective of this Act is that in the case of an employment injury compensation be providedto the injured workman and in case of his death to his dependants.Employer to pay compensation:

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