Workmens On Act

Workmen's Compensation Act 1923 1

Workmen's Compensation Act 1923  Presented By

Name of the Student       

Anita Agarwal Dhawal Ambani Gaurang Bharkhada Sanjog Devrukhkar Pradik Malik Arun Singh Varun Agarwal

Roll Number 02 03 05 11 21 50 61

 Presented To Ms. Minal Jain (MFM – 2008-11 : SEM-II)

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What is Workers Compensation Act 1923

Workmen's Compensation Act 1923 is central legislation which provides for payment of compensation for injuries suffered by a workman in the course of and arising out of his employment according to the nature of injuries suffered and disability incurred, where death results from the injury, the amount of compensation is payable 3 to the dependants of the workmen.

Objectives of the law…

 One of the oldest legislation of social security in India.  a workman who dies or suffers disablement (partial or

total) 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 Propelled Vehicles  Construction works  Certain other hazardous Occupations  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 6 subject to revision from time to time

Enforcement of the Act  A

Social Security Division has been set up under the Ministry of Labour and Employment , which deals with framing of social security policy for the workers and implementation of the various social security schemes.

 It is also responsible

for enforcing this Act. The Act is administered by the State Governments 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 his employment (ii) If a workman employed in any employment contracts any disease, specified in the Act as an occupational disease peculiar to that employment.

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The employer is not liable to pay Compensation in the following cases (i) If the injury does not result in the total or partial disablement of the workman for a period exceeding three days. (ii) If the injury, not resulting in death or permanent total disablement, is caused by an accident which is directly attributable to:(i) the workman having been at the time of the accident under the influence of drink or drugs; or (ii) the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen; or (iii) the willful removal or disregard by the workman of any safety guard or other device which has been provided for the purpose of securing safety of workmen. 9

Employment disease  Employer

is liable if a workman contracts any specified occupational disease, while he is in service of employer for at least 6 months. [section 3(2)].

Compensation payable – even if no fault of employer  The compensation is payable even when there was no fault of

employer. In New India Assurance Co. Ltd. v. Pennamna Kuriern (1995) 84 Comp. Cas. 251 (Ker HC DB), claim of workmen for compensation under Motor Vehicle Act was rejected due to negligence of employee, but compensation was awarded under Workmen‘s 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 entitled to 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. 11

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 12

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 predeceased daughter where no parent of the child is alive A paternal grandparent, if no parent of the workman is alive 13

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. 14

Compensation  In case of death: 50% of the monthly wage of the deceased

workman, multiplied by the relevant factor or Rs. 20,000; whichever is 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 a percentage of that payable in the case of total permanent disablement. The earning capacity is determined by a qualified medical practitioners. 4. In case of (total or partial) temporary disablement: A sum equal to 25% of the monthly wages of the workman shall be paid halfmonthly. The minimum rate of compensation is proposed to be raised from 50,000 to Rs. 80,000 for death and from Rs.60,000 to 15 Rs. 90,000 in case of permanent/total disablement.

Example Pratap Narain Singh Deo Vs Sriniwas Sabata : (1976): a carpenter lost his left hand, it was held by the court that he suffered from total disablement – as he would not get any job of carpentry – as now he cannot do carpentry. 16

Defaulting the compensation Where an employer is in default in paying the compensation due under this Act, within one month from the date it fell due, the Commissioner shall: a) Direct that the employer in addition to the amount of arrears, pay simple interest there on at the rate of 12% per annum or on such higher rates. b) Commissioner has the power under the Act to impose penalty and the interest on the cleared amount as per the provision of the act. 17

Exceptions – when compensation is not available :  In case of Injury which does not result in total or

partial disablement of workman for a period exceeding 3 days

 Injury caused by an accident directly attributable to

workman under influence of drinks or drugs willful disobedience of express orders for safety willful removal of safety guard or device. [Even if such case, if the workman dies or suffers permanent total disablement, the employer will be liable]. 18

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. 19

Notice The State Government may, by notification in the Official Gazette, direct that every person employing workmen, or that any specified class of such persons, shall send at such time and in such form and to such authority, as may be specified in the notification, a correct return specifying the number of injuries in respect of which compensation has been paid by the employer during the previous year and the amount of such compensation together with such other particulars as to the compensation as the State 20 Government may direct.

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 which he 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, 21  shall be punishable with fine.

THANK YOU! 22