COMPENSATION CLAIMS UNDER WORKMENS

COMPENSATION ACT 1923

AIM
1.

GREF officers and personnel (barring clerical staff ) are entitled to

death/injury benefit in accordance with the provisions of Workmens Compensation
Act 1923 as amended from time to time, as per Para 196 of Border Roads
Regulations. As per Para 514 of Border Roads Regulations, the said Act shall also
apply to the casually paid labourers (CPLs) employed by the Projects. The aim of
this module is to lay down detailed procedure for processing the claims of
compensation of entitled GREF personnel and CPLs under the said Act.

ELIGIBLE CATEGORIES
2.
Only a person who is covered by the definition of Workman, given in
Section 2 (n) of the Act will be eligible for the benefits under this Act. Sub Section
2 (n) (ii), lays down that a person who is employed in any such capacity as
specified in Schedule II of the Act will be a Workman. In accordance with Para
(viii) Sub Para (a) and (c) of schedule II, the persons employed in the construction,
maintenance, repair or demolition of any building (of given specification) or any
road, bridge, tunnel or canal are included in the definition of Workman. GREF
personnel and CPLs employed on such duties thus fall within the definition of
Workman,. With the removal of upper monthly emoluments limit, the GREF
officers employed on such duties are also covered in the definition of Workman.
Army officers/ men are not entitled to benefits under this Act. Clerical staff is also
not covered in the definition of Workman.

CIRCUMSTANCES UNDER WHICH COMPENSATION IS

PAYABLE
3.
In accordance with Section 3 of the Act, a Workman will be entitled to
compensation only when his death or permanent total disablement is caused through
an injury by an accident which has arisen out of and in the course of his
employment. In case of permanent total disablement, a workman will not be
eligible to compensation if his disablement is caused by an accident which is
directly attributable to :(a)

The workman having been at the time of accident under the influence of
drink or drugs or

(b)

The wilful disobedience of the workman to an order expressly given, or to

a rule expressly framed, for the purpose of securing the safety of
workman, or

(c)

The wilful removal or disregard by the workman of any safety guard or

other device he knew to have been provided for the purpose of securing
the safety of workman.

4. If a workman employed in any employment specified in Part A of schedule III

of the Act, contracts any disease specified there in as an occupational desease
peculiar to that employment, or if a workman, whilst in the service of an
employer in whose service he has been employed for a continuous period of not
less than six months (which period shall not include a period of service under
any other employer in the same kind of employment) in any employment
specified in Part B of schedule III, contracts any disease specified therein as an
occupational disease peculiar to that employment, the contracting of the disease
shall be deemed to be an injury by accident for the purpose specified in Para 3
above.

AMOUNT OF COMPENSATION
5.
In accordance with Section 4 of the Act, the amount of compensation payable
will be as under :(a)

(b)

Where death results from an injury, an amount equal to fifty percent of the
monthly wages of the deceased workman multiplied by the relevant factor
given in Schedule IV of the Act or an amount of Eighty Thousand Rupees
whichever is more.
Where permanent total disablement results from the injury an amount
equal to sixty percent of the monthly wages of the injured workman
multiplied by the above mentioned relevant factor or an amount of
Rs.90000/- (Rs.Ninty Thousand only) whichever is more.

6.
It may be borne in mind that the age given in first column of Schedule IV is
the completed years of age on the last birth day of the workman immediately
preceding the date on which the compensation fell due. The same may be worked
out accordingly.
7.
Where the monthly wages of a workman exceed Four thousand rupees, his
monthly wages for the purpose of calculation of amount of compensation shall be
deemed to be Four thousand rupees only.
8.
For computing the monthly-wages, charges on the following counts shall also
be included:-

(a)
(b)
(c)
(d)
(e)
(f)

Bonus
Accommodation
Ration
Clothing
Medical re-imbursement
Washing Allowance

9.
The above charges will be calculated based on the SSR rates as circulated
from time to time.

METHOD OF CALCULATING WAGES

10. Where a workman has worked for a continuous period of twelve months
immediately preceding the accident, the monthly wages of the workman shall be
one twelfth of the total wages earned during last twelve months.
11. Where the whole of the continuous period of service of a workman is less
than one month, the monthly wages of the workman shall be average monthly
amount which during the twelve months immediately preceding the accident was
being earned by a workman employed on the same work by the same employer or if
there was no workman so employed, by a workman employed on similar work in
the same locality.
12. In other cases including cases in which it is not possible for want of necessary
information to calculate the monthly wages under Para 11 above, the monthly wages
shall be thirty times the total wages earned in respect of the last continuous period
of service divided by the number of days comprising such period.

PROCESSING OF COMPENSATION CLAIMS

13.

SEQUENCE OF EVENTS

As soon as a case of an accident involving a workman during his course of

employment with GREF comes to notice of an OC unit, he shall take action as
enumerated in succeeding paragraphs.
14.

WHERE THE WORKMAN (MEN) DIES IN AN ACCIDENT

(a)
(b)

Lodge a FIR with the police authorities within six hours of the accident
and obtain copy of the same.
Obtain death certificate from the medical authority who declared the
workman as dead.

(c)
(d)

(e)
(f)

(g)

Arrange post-mortem report on the body of workman in liaison with the

police/medical authorities and obtain copy of the same by fastest means.
Order a One Man Inquiry (OMI) within 24 hrs of the accident, to be held
by a gazetted/commissioned officer. If more than one unit is involved,
OMI will be ordered by Task Force Commander within 48 hrs of the
accident. The One Man Inquiry will be held to establish eligibility of
compensation to the concerned workman (men). The OMI will be
completed within ten days of the accident and proceedings transmitted to
the concerned T.F. After examination at the T.F. HQ orders of T.F
Commander will be endorsed on the OMI. The sole aim of holding a OMI
is to establish admissibility of compensation.
Other issues like
circumstances leading to the accident, MT discipline, regularisation of loss
to the vehicle will not be combined. A separate Court of Inquiry to
investigate such issues may be held as considered necessary.
Simultaneously the wages statement along with calculation sheet and
contingent bill should be got verified from audit authorities.
Forward compensation claim within 20 days of the accident to the
prescribed authority for sanction along with the following documents:i. Manuscript copy of OMI.
ii. Singed copy of convening order of OMI.
iii. Orders of T.F Cdr on the OMI.
iv. Original death certificate.
v. Post-mortem report in original (if no original issued by Medical
authority, copy duly attested by the medical authority)
vi. Signed copy of FIR with FIR number registered with police.
vii. Application for compensation under WCA 1923 on form X/Z as
applicable.
viii. Wages statement/pay drawn statement for last 12 months
immediately preceding the accident.
ix. Calculation sheet.
x. Contingent bill.
xi. No demand certificate.
xii. Statement of case.
xiii. Delay report.
xiv. DO Part II notifying the death casualty.
xv. In case of CPL, photo copy of Recruitment-cum-Medical form
and certificate from OC unit regarding correctness of date of
birth.
xvi. Job/Head No. against which amount of compensation to be
booked (to be shown on contingent bill).
In case of claims requiring sanction of DGBR/Govt. the following
additional documents will be enclosed:

i.
Audit report of AO/ACDA(Project) in original indicating name of
AO/ACDA who has signed on it.
ii. Recommendation of Task Force Commander.
iii. Recommendation of Chief Engineer.
iv. Index indicating serial-wise/systematic details of documents
with proper numbering of pages.
v. All the documents enclosed with the claim will be authenticated.
15.

WHERE THE WORKMAN IS INJURED IN AN ACCIDENT

In case of an accident not resulting in death, eligibility of compensation

can be established only after permanent disability of the workman, if any, is
assessed. In such cases also the OMI will be completed and orders of T.F Cdr given
thereon. Thereafter, the required documents will also be prepared and kept ready
for processing immediately after permanent disability of the workman is assessed.
In such cases, compensation claim will be initiated within 10 days of assessment of
permanent disability of the workman. Such cases will be supported with the
following documents:(a)
(b)
(c)
16.

Original medical documents including medical board.

Disability certificate duly countersigned by T.F SMO and Project CMO
and concurred by DDG (Med).
All other documents mentioned under Para 14 (f) and (g) above except
srl (iv) and (v).
WHERE THE WORKMAN HAS SUFFERED FROM AN
OCCUPATIONAL DISEASE.

Where death/permanent disability is caused as a result of an

occupational disease, orders on the OMI will be given. Such cases will be
processed duly supported with the following documents:(a)
(b)
(c)

17.

Original Medical documents/case sheets.

Attributability certificate on form AFMSF-93 (Pt II) (to be initiated by
AMA and concurred by SMO & Dy.CMO & DDG (Med))
All other documents mentioned under Para 14 (f) & (g) above except Srl.
(vi) for death cases and except Srl (iv), (v) and (vi) for permanent
disability cases.
COMPETENT AUTHORITY FOR SANCTION OF COMPENSATION

The authorities competent to sanction compensation are laid down in

Govt. of India, Ministry of Road Transport & Highways, BRDB letter
No.BRDB/01/134/BEA/2001 dated 19th November 2001 and are as under :DGBR
Rs.4,50,000/Chief Engineers
Rs.3,50,000/Cdr T.Fs/Commandants GREF Centre Rs.2,50,000/Cases involving payment in excess of Rs.4,50,000/- should be
submitted to Government for sanction.
18. The compensation claims will be processed through audit channel and audit
reports will be obtained by hand as far as possible.
19.

DISBURSEMENT OF COMPENSATION

Sanction of the competent authority for compensation will be sent to the

concerned unit through fastest means. On receipt of sanction, the unit will claim the
amount and make disbursement within 10 days of the receipt of sanction. In death
cases and in cases where payment is to be made to a woman, the compensation
amount will be sent to the Commissioner of Compensation of the concerned district
for further disbursement in terms of Sec 8 of the Act.
20. In accordance with Rule 6 of the Workmens Compensation Rules 1924, the
Commissioner is required to give a Receipt for compensations in Form B
(Specimen enclosed at Annexure A) in respect of the compensation amount
deposited with him. Likewise, after disbursing the compensation amount, the
Commissioner is required to render Statement Of Disbursements in Form C
(specimen enclosed at Annexure B). It will be ensured by the OC Unit remitting
the amount of compensation that Receipt in Form B is obtained from the
Commissioner immediately after making remittance to him. Likewise, Statement
Of Disbursement as per Form C will be obtained by the OC Unit from the
Commissioner immediately after the compensation amount is disbursed by him.
Constant monitoring in this regard will be done.
21. After obtaining the above mentioned forms, a copy each of the same will be
sent by the OC Unit to the authority which sanctioned the compensation i.e.TF
Commander, CE, DGBR and Govt. as the case may be.
22. Sec 8 (3) of the Act provides that a receipt of Commissioner shall be a
sufficient discharge in receipt of any compensation deposited with him. However,
in larger interests of the beneficiary, cases should not be treated as settled or closed
based on the receipt from Commissioners. The words sufficient discharge should
be understood to mean sufficient discharge of the liability of the department to pay

compensation. It is our moral responsibility to ensure that the amount of

compensation is received by the beneficiary as soon as possible after remittances to
the Compensation Commissioner. Accordingly, the cases should be pursued till
payment of compensation is actually received by the beneficiaries.
The statement of disbursement as per Form C obtained by the Unit
will invariably be verified by the AO Task Force/Project. These statements will be
watched through the medium of a register. The cases where the payment
receipt/cash receipts is delayed more than three months, be referred to the Secretary
of the Labour Department of the concerned State as per instructions issued vide HQ
DGBR
letter
Nos.15066/Policy/DGBR/01/EIC
A
dated
29.11.96,
15066/DGBR/Policy/EIC-A dated 14.10.99 and 15066/Policy/50/EIC-A dated 16
.1.2002.
23.

HALF MONTHLY PAYMENTS

When an injury is caused to a workman as a result of an accident
occurring during his course of employment with GREF and the same results in
temporary disablement a half monthly payment of the sum equivalent to twenty five
percent of monthly wages of the workman, can be paid to him under the provisions
of Sub Sections 2 of Sec 4 of the Act. The amount is recoverable from the amount
of lump sum compensation payable.
FUNERAL EXPENDITURE
24.
If the injury to the workman results in his death, the department shall,
in addition to the compensation amount deposited with the Commissioner a sum of
one thousand rupees for payment to the eldest surviving dependent of the workman
towards the expenditure of the funeral of such workman or where the workman did
not have a dependent or was not living with his dependent at the time of death, to
the person who actually incurred such expenditure.
Where funeral expenditure in respect of deceased GREF personnel is
claimed under Para 166 of Border Roads Regulations, the same will not be claimed
under the above provision.
MONITORING SLIP
25.
A monitoring Slip will accompany the OMI proceedings till the
compensation amount is finally disbursed to the concerned beneficiary. The slip
will be signed by officers handling the case at various stages starting from the
ordering of OMI till the compensation is disbursed.
NON PAYMENT OF COMPENSATION CLAIM
26.
In case payment of compensation could not be remitted to the
concerned beneficiary/N.O.K due to one or the other reason the amount of

compensation so received back from the Commissioner be deposited in bank and

TR for amount adjusted by AO Task Force/ (P).
CONCLUSION
27.
In terms of Section 4 A of the Act, compensation claims are required to
be finalised and amount deposited with the Commissioner or made to the workman,
as the case may be, within one month of their falling due. In case of default, the
Commissioner can direct to pay simple interest at the rate of 12% per annum and in
case of further default he can direct additional penalty upto 50% of the amount of
arrears and interest. It is imperative that to avoid imposition of any penalty, all out
efforts should be made to make payment of compensation within stipulated period.
Officers/Staff dealing with the case at Unit/T.F/Project level will be held responsible
for delay in processing the case.
Compensation paid in satisfaction of the Court order under WCA
1923 will not be treated as charged expenditure. Any court order on the subject
should be treated as declaratory order.

ANNEXURE A
FORM B
(Rule 6)
RECEIPT FOR COMPENSATION
(Deposit under Section 8(1) of the Workmens Compensation Act, 1923)

Book No Receipt No Register No.

Depositor
Deceased or injured workman...
Date of deposit

Sum deposited Rs.

Dated The ..

Commissioner

ANNEXURE B
FORM C
(Rule 6)
STATEMENT OF DISBURSEMENTS
(Section 8(4) of the Workmens Compensation Act, 1923)

Serial No..
Depositor
Date

Rs.

Amount deposited
Amount deducted and re-paid to the employer under the proviso to section
8(1)..
Funeral expenses paid.
Compensation paid to the following dependant(s):
Name

Relationship

...

10

Total...
Dated the..

Commissioner