Workmens on Act

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Workmen's Compensation

Act 1923


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Workmen's Compensation

Act 1923

Presented By

Name of the Student Roll Number Anita Agarwal 02

Dhawal Ambani 03 Gaurang Bharkhada 05 Sanjog Devrukhkar 11 Pradik Malik 21 Arun Singh 50 Varun Agarwal 61

Presented To

Ms. Minal Jain

(MFM 2008-11 : SEM-II)


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Objectives of the law

One of the oldest legislation of social security in India.

a workman who dies or suffers disablement (partial ortotal) due to accident is entitled to get compensation.


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Applicability of the Act

The Act applies to Railway servants

Factories

Mines Plantations

Mechanically PropelledVehicles

Construction works

Certain other hazardousOccupations

Casual Workers E.g.Drivers, Watchman, etc.


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Nature of compensation

The amount of compensation to be paid depends on

the nature of the injury and the average monthly

wages and age of workmen. The minimum and

maximum rates of compensation payable for death

(in such cases it is paid to the dependents of

workmen) and for disability have been fixed and is

subject to revision from time to time


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Enforcement of the Act

A Social Security

Division has been set

up under the Ministry

of Labour andEmployment , which

deals with framing of

social security policy

for the workers andimplementation of the

various social security

schemes.

It is also responsible

for enforcing this Act.

The Act is administered

by the StateGovernments through

Commissioners for

Workmen's

Compensation.


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Provisions of the Act

An employer is liable to pay compensation

(i) If personal injury is caused to a workman by

accident arising out of and in the course of hisemployment

(ii) If a workman employed in any employment

contracts any disease, specified in the Act as anoccupational disease peculiar to that employment.


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(i) If the injury does not result in the total or partial disablement of theworkman for a period exceeding three days.

(ii) If the injury, not resulting in death or permanent total disablement, iscaused by an accident which is directly attributable to:-

(i) the workman having been at the time of the accident under theinfluence of drink or drugs; or

(ii) the willful disobedience of the workman to an order expresslygiven, or to a rule expressly framed, for the purpose of securingthe safety of workmen; or

(iii) the willful removal or disregard by the workman of any safetyguard or other device which has been provided for the purposeof securing safety of workmen.

The employer is not liable to pay

Compensation in the following cases


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Employment disease

Employer is liable if a workman contracts any specifiedoccupational disease, while he is in service of employer for atleast 6 months. [section 3(2)].

Compensation payable even if no fault of employer

The compensation is payable even when there was no fault ofemployer. In New India Assurance Co. Ltd. v. Pennamna Kuriern -(1995) 84 Comp. Cas. 251 (Ker HC DB), claim of workmen forcompensation under Motor Vehicle Act was rejected due tonegligence of employee, but compensation was awarded underWorkmens Compensation Act on the principle of no fault.


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Compensation payable even if

worker was careless

Compensation is payable even if it is found that the

employee did not take proper precautions. An

employee is not entitledto get compensation only if

(a) he was drunk or had taken drugs

(b) he willfully disobeyed orders in respect of safety

(c) he willfully removed safety guards of machines.

However, compensation cannot be denied on the

ground that workman was negligent or careless.


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Who are dependent persons?

Sec. 2(1) (d) :

(1)widow, minor legitimate or adopted son, an

unmarried legitimate or adopted daughter, or a

widowed mother

(2) if wholly dependent, - son, daughter who has

attained the age of 18 years, and who is infirm and

(3) if wholly / partly dependent :

Widower

a parent other than widowed mother

Minor illegitimate son, unmarried illegitimate daughter


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Continued

Daughter legitimate or

illegitimate or adopted if

married and a minor or if

widowed and a minor

Widowed daughter in law

A minor child of a

pre=deceased son

A minor child of a pre-

deceased daughter where noparent of the child is alive

A paternal grandparent, if no

parent of the workman is alive


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Appointment of Commisioner

The State Government may, by notification in the

Official Gazette, appoint any person to be a

Commissioner for Workmen's Compensation for such

area as may be specified in the notification.

Any Commissioner may, for the purpose of deciding

any matter referred to him for decision under this Act,

choose one or more persons possessing special

knowledge of any matter relevant to the matter under

inquiry to assist him in holding the inquiry.


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In case of death: 50% of the monthly wage of the deceasedworkman, multiplied by the relevant factor or Rs. 20,000; whicheveris more.

2. In case of total permanent disablement: 60% of the monthly wage,

multiplied by the relevant factor: or Rs. 24,000; whichever is more.

3. In case of partial permanent disablement: The compensation is apercentage of that payable in the case of total permanentdisablement. The earning capacity is determined by a qualifiedmedical practitioners.

4. In case of (total or partial) temporary disablement: A sum equal to25% of the monthly wages of the workman shall be paid half-monthly. The minimum rate of compensation is proposed to beraised from 50,000 to Rs. 80,000 for death and from Rs.60,000 to

Rs. 90,000 in case of permanent/total disablement.

Compensation


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Example

Pratap NarainSingh Deo Vs

Sriniwas Sabata :

(1976):

a carpenter lost hisleft hand, it was heldby the court that he

suffered from totaldisablement as hewould not get any jobof carpentry asnow he cannot docarpentry.


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Where an employer is in default in paying thecompensation due under this Act, within onemonth from the date it fell due, the Commissionershall:

a) Direct that the employer in addition to theamount of arrears, pay simple interest there on atthe rate of 12% per annum or on such higherrates.

b) Commissioner has the power under the Act toimpose penalty and the interest on the clearedamount as per the provision of the act.

Defaulting the compensation


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Exceptions when compensation

is not available :

In case of Injury which does not result in total orpartial disablement of workman for a periodexceeding 3 days

Injury caused by an accident directly attributable toworkman under influence of drinks or drugs willfuldisobedience of express orders for safety willful

removal of safety guard or device. [Even if suchcase, if the workman dies or suffers permanent total

disablement, the employer will be liable].


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Claims

If any question arises in any proceedings under this Act as

to the liability of any person to pay compensation (including

any question as to whether a person injured is or is not a

workman) or as to the amount or duration of compensation(including any question as to the nature or extent of

disablement), the question shall, in default of agreement, be

settled by a Commissioner.

No Civil Court shall have jurisdiction to settle, decide or deal

with any question which is by or under this Act required to be

settled, decided or dealt with by a Commissioner or to

enforce any liability incurred under this Act.


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Notice

The State Government may, bynotification in the Official Gazette,direct that every person employingworkmen, or that any specified classof such persons, shall send at suchtime and in such form and to suchauthority, as may be specified in thenotification, a correct returnspecifying the number of injuries inrespect of which compensation has

been paid by the employer duringthe previous year and the amount ofsuch compensation together withsuch other particulars as to thecompensation as the State

Government may direct.


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Failure of Notice

Whoever,

fails to maintain a notice-book which he is required to

maintain;

or fails to send to the Commissioner a statement whichhe is required to send;

or fails to send a report which he is required to send;

or fails to make a return which he is required to make,

shall be punishable with fine.


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THANK

YOU!

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