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Workmens Compensation Act 1923

Presented By: Farah Bulsara (19)

The Workmen's Compensation Act, 1923 aims to

provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen.

Scope, Coverage And Applicability

The Act extends to the whole of India. It applies to workers employed in any capacity specified in

Schedule II of the Act.

The Workmen's Compensation (Amendment) Act, 2000 has

brought all the workers within its ambit irrespective of their nature of employment.
Establishments which are covered by the Employees State

Insurance Act, are outside the purview of this Act.

Employers Liability For Compensation

Personal Injury Occupational Disease Death

Injury caused to a workman by an accident ordinarily

results in the loss of the earning capacity of the workman concerned and this loss of earning capacity is technically "disablement".
Disablements can be classified as Total and Partial.
It can further be classified into Permanent and Temporary.

Compensation for death

=50% monthly wages*relevant factor or Rs 80,000 100

Compensation for permanent total disablement

=60% monthly wages*relevant factor or Rs 90,000 100

Compensation for partial permanent disablement is same as

in the case of total permanent disablement.

For temporary disablement, a sum equal to 25% of the

monthly wages of the workman is paid half-monthly.


Where disablement does not last for more than three days. Where disablement is because of the following: Drugs or drinks Disobedience

Disregard for the safety measures prescribed.