Chapter 2

Workmen’s
Compensations

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Chapter Objectives
After studying this chapter you should be able to
understand:

1. W.C Act
2. Aims and objectives
3. Definitions
4. Disablement, accident
5. Etc

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Nature and Scope of W.C Act
„ The W.C act is the first measure of social security the
liability to pay compensation arising out of and in the
course of employment.

„ The liability to pay compensation is independent of any

neglect or wrongful act on the part of the employer or
his servants.

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Aims and Objectives
The Aims and objectives of W.C Act are;
a) To protect workmen, as far as possible, from hardship
arising from accident
b) To provide for payment of compensation for injury by
accident
c) To increase importance of adequate safety devices in
order to reduce number of accidents
d) To encourage employer to provide adequate medical
treatment for mitigation the effect of accidents

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Definitions
„ Adult
A person over 15 years of age
„ Minor
A person under 15 years of age

„ Dependent
means specified relatives whether or not they are
dependent on the earning of the workman at the time of
his death.

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Definitions Contd.
Specified Relations: the relatives who become dependents
without any qualification are;

1. Wife
2. Minor legitimate Son
3. Unmarried Legitimate daughter
4. Widow mother

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Definitions Contd.
Specified Dependents: the relatives who have to prove they
are dependent on the earnings of the deceased workman
are;
‰ Widower
‰ Minor illegitimate son
‰ unmarried illegitimate daughter
‰ Minor Brother
‰ Unmarried or widowed sister
‰ widowed daughter-in-law
‰ Minor child of a deceased son
‰ Minor son of a deceased daughter

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Disablement
Disablement means a loss or reduction of earning power or
incapacity for work, and includes inability to get work if that be the
result of the accident injury
1. Partial Disablement; Reducing the earning capacity

a. Temporary Partial Disablement

reducing the earning capacity in that particular employment in

which he was engaged at the time of the accident

a. Permanent Partial Disablement

reducing the earning capacity in every field of employment, which
he was capable of undertaking at the time of the accident

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Disablement Contd.
2. Total Disablement
means a disablement which incapacitates workman for all
work which he was capable of performing at the time of
accident resulting in such disablement

‰ Temporary Total Disablement

‰ Permanent Total Disablement

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Accident
„ Means unexpected or not-designed event.

„ It is used to express accidental injury.

„ Accidental injury includes any injury not expected or

designed by the injured workman himself, even though there
may be negligence

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Accident Types
„ Arising out of employment
means that there must be some relation between the injury and
the accident and the work done in the course of employment.
Two conditions must be fulfilled;
1. Injury resulted from some risk incidental to the duties of service

2. At the time of injury the worker must have been engaged in the
business of the employer and must not be doing something of his
personal advantage

„ Arising in the course of employment

refers to the time during which employment continues. It
includes not only the time when he is doing the work but also
the time he is at place where he would not be but for his
employment

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Different Remedies Open to Workman
„ Claim under the Employer’s Liability Act
‰ can be claimed by employees not under Employers Liability Act
‰ Are employed on monthly wages of more than 3000
‰ Are not included in schedule II of WC Act

„ File a claim under the Workmen’s Compensation Act

‰ Are employed on monthly wages of upto 3000
‰ Are included in schedule II of WC Act

„ Compensation for negligence under Fatal Accident Act

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Employer’s Liability
Employer has the liability to pay compensation if the injury
was because of the following two points otherwise not;

a. An accident

b. Arose out of and in the course of employment

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Employer When Not Liable
The employer will not be liable to pay compensation in the
following areas;
a. Where the incapacity or disablement does not last for more
than 4 days

a. Where the injury, not resulting in death, is caused by an

accident which is directly attributed;
a. Accident under influence of drink/drug
b. Willful disobedience to an express rule framed for securing
safety
c. Willful removal or disregard of any safety guard/device

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