WORKMAN COMPENSATION ACT

1923
INTRODUCTION
 Technological innovation and automation has
resulted into different industrial risks for the
workers working on fast moving machines.
 The risks lead to accidents, deaths and many
types of disablement.
 The need for coping up with such risks lead to the
emergence of Workman compensation Act.
OBJECTIVES OF THE ACT
 It aims at providing financial protection to
workmen and their dependants in case of
accidental injury by means of payment of
compensation by the employers.
SCOPE AND APPLICABILITY
 The act extends to the whole of India except the
states of Jammu and Kashmir.
 Applicable to all workmen except the one’s
covered under employee’s state insurance
Act,1948.
COVERAGE
Applicable to: - Mines
 Factories
 Plantations
 Transport Establishments
 Construction Works
 Railways
 Ships
 Circuses
Not applicable to: -
 Members of armed forces of union
 Employees covered by ESI Act, 1948.
DISABLEMENT
 Injury caused to a workman by an accident
usually 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 (a) Total, and
{b) Partial.
 It can further be classified into (i) Permanent,
and {ii) Temporary
TOTAL DISABLEMENT
 It results into inability on the part of the
worker to do any work and not merely the
work he was performing at the time of accident.
 The loss of earning capacity of such workman is
100% or more.
TEMPORARY PARTIAL DISABLEMENT
 It results in reduction in the earning capacity of a
workman in relation to the employment he
had been at the time of accident resulting in such
disablement.
PERMANENT PARTIAL DISABLEMENT

 It results in the permanent reduction in the earning

capacity in respect of employment which the worker
was capable of undertaking at the time of accident
EMPLOYER’S LIABILITY FOR COMPENSATION
 If personal injury is caused to a worker by
accident arising out of and in the course of his
employment, resulting into
 (i) death,
 (ii) permanent total disablement,
 (iii) permanent partial disablement, or
(iv) temporary disablement
 who has contracted an occupational disease
accident arising out of and in the course of
implies a casual connection between the injury
and the accident and the work done in the course
of employment.
his employer shall be liable to pay compensation
CONDITIONS FOR RECEIVING COMPENSATION FOR
PERSONAL INJURY CAUSED BY THE ACCIDENT
 At the time of injury workman must have been
engaged in the business of the employer and
must not be doing something for his personal
benefit;
 That accident occurred at the place where
he was performing his duties; and
 Injury must have resulted from some risk
incidental to the duties of the service, or inherent
in the nature or condition of employment.
WHEN IS AN EMPLOYER NOT LIABLE TO
PAY COMPENSATION
 If the injury did not result in total or partial
disablement of a workman for a period
exceeding three days,
 If the workman was at the time of the accident
under the influence of drink of drug, or
 If the workman willfully disobeyed an order
expressly given or a rule expressly framed for the
purpose of securing safety of workman, or
 If the workman willfully removed or
disregarded any safety guard or other device
which to his knowledge was provided for the
purpose of securing his safety.
AMOUNT OF COMPENSATION
 The amount of compensation payable to a
workman depends on the nature of injury
caused by accident, the monthly wages of the
workman concerned, and the relevant factor for
working out lump sum equivalent of
compensation amount.
 There is no distinction between an adult and
a minor worker with respect to the amount of
compensation.
COMPENSATION FOR DEATH
 In case of death resulting from injury, the
amount of compensation shall be equal to 50% of
the monthly wages of the deceased
workman multiplied by the relevant factor.
Or an amount of Rs 80,000/- whichever is
more.
COMPENSATION FOR PERMANENT
TOTAL DISABLEMENT
 In case of permanent total disablement resulting
from the injury, the amount of compensation
shall be 60% of the monthly wages of the
injured workman multiplied by the relevant
factor or Rs 90,000/- thousand whichever is
more.
COMPENSATION FOR PERMANENT PARTIAL
DISABLEMENT

 In case of an injury specified in part II of the

schedule I, the amount of compensation shall be
such percentage of the compensation which
would have been payable in the case of
permanent total disablement as being the
percentage of loss of earning capacity
caused by that injury.
 in case of an injury not specified in schedule
I, such percentage of the compensation is payable
which is proportionate to the loss of earning
capacity (as assessed by a qualified medical
practitioner) permanently caused by the injury.
COMPENSATION FOR TEMPORARY
DISABLEMENT (TOTAL OR PARTIAL)

 If the temporary disablement, whether total or

partial results from the injury, the amount of
compensation shall be a half monthly payment of
the sum equivalent to 25% of the monthly wages
of the workman to be paid in accordance with the
provisions. The half monthly payment shall be
payable on the sixteenth day from the date of
disablement In cases where such disablement
lasts for a period of 28 days or more
compensation is payable from the date of
disablement In other cases After the expiry of a
waiting period of three days from the date of
disablement
COMPENSATION TO BE PAID WHEN DUE AND
PENALTY FOR DEFAULT (SECTION 4A)

 As per this section, compensation has to paid as soon

as it is due In case the employer does not accept the
liability of paying the compensation, he is bound to
make provisional payment to the extent of the liability
he accepts. Such amount has to be deposited with the
commissioner or paid to the workman.
 If he defaults, the commissioner may order: the
payment of the amount with interest at12 % per year
if the default to be unjustifiable then the commissioner
may order payment of a further sum not exceeding
50% of the amount due, by way of penalty.
NOTICE AND CLAIM
 Compensation is only applicable where notice of
the accident has been given by the workman to
the employer.
 A worker who refuses to submit himself for
medical examination has no right to receive the
compensation under the act.
ACCIDENT REPORT
 Where the accident results in death or serious
physical injury, the employer should send a
report to the Commissioner, within 7 days of the
accident, in the prescribed from giving the
circumstances attending the death or serious
bodily injury
CONTRACTUAL EMPLOYMENT(SEC-12(1))
 If any employer takes the help of contractor in
order to engage some workmen, workmen who
are injured are entitled to compensation from the
principal. When the principal is held liable for
compensation, he shall be entitled to be
indemnified by the contractor.
CONTRACTING OUT(SEC 17)
 Any contract where by a worker relinquishes in
the right of compensation from the employer for
personal injury arising out of and in the course of
employment will be null and void. Employer can’t
use it as a defence.
AUTHORITIES UNDER THE ACT(S 19-31)
 These sections provides for appointment of
commissioners for the enforcement of provisions
of the act. Sec 20 authorises the State
Government to appoint commissioners under the
act.