WORKMEN COMPENSATION ACT

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workmen compensation for accidents caused during employement

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WORKMEN’S COMPENSATION ACT, 1923 Employees compensation act-1923 :

WORKMEN’S COMPENSATION ACT, 1923 Employees compensation act-1923

Introduction to the Act :

Introduction to the Act It is one of the earliest labor welfare and social security legislation enacted in India. If a workman is a victim of accident or an occupational disease in course of his employment, he needs to be compensated As per WC Amendment Act 2009 the word 'workman' has been replaced by 'employee‘ Employees compensation act-1923

Objectives:

Objectives 1) Provide workmen and/or their dependents some relief or to consider compensation payable by an employer to his workmen in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen as a measure of relief and social security 2) Provide for payment by certain classes of employers to their workmen compensation for injury by accident 3) To enable a workmen to get compensation irrespective of his negligence 4) It lays down the various amounts payable in case of an accident, depending upon the type and extent of injury. The employer now knows the amount of compensation he has to pay and is saved of many uncertainties to which he was subject before the Act came into force.

Scope and Coverage :

Scope and Coverage The Act extends to the whole of India. The workmen whose occupation is hazardous should be included within the scope of this Act. It applies to workmen employed in factories, mines, plantations, transport establishments, construction work, railways, ships, circuses, & other hazardous occupations & employments specified in Schedule II to the Act. The coverage of this act is also to cooks employed in hotels and restaurants. The Act does not apply to members of Armed Forces of the Union & those workers who are insured under the Employees’ State Insurance Act 1948.

Features of the Act :

Features of the Act 1) Act provides for cheaper and quicker mode of disposal of disputes through special proceedings than possible under Civil Laws . 2) Act provides compensation to workmen for injury caused by accident and occupational disease arising out of and in the course of employment. 3) The Act is applicable to apprentices also. 4) Procedure for settlement of claim is through Commissioners.

Disablement:

Disablement Disablement means loss of capacity to work or to move. Disablement of a workman may result in loss or reduction of his earning capacity. In the latter case, he is not able to earn as much as he used to earn before his disablement. Disablement may be partial, or total.

Partial disablement:

Partial disablement Further Partial disablement may be permanent, or temporary. i ) Partial Disablement [Section 2 (1) (g)]: This means any disablement as reduces the earning Capacity of a workman as a result of some accident. Partial disablement may be temporary or permanent. a) Temporary partial disablement means any disablement as reduces the earning capacity of a workman in any employment in which he was engaged at the time of accident which resulted in such disablement. b) Permanent partial disablement is one which reduces the earning capacity of a workman in every employment which he was capable of undertaking at the time of injury.

ii) Total Disablement [Section 2 (1) (l)]: :

ii) Total Disablement [Section 2 (1) (l)]: It means such disablement, whether of a temporary or permanent nature, as incapacitates a workman for all work which he was capable of performing at the time of the accident resulting in such disablement. It refers to that condition where a workman becomes unfit for every type of work and is not able to get job anywhere due to that disablement. Total disablement is deemed to result from every injury specified in Part I of Schedule I or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in Part II against those injuries, amounts to 100 per cent or more. Where an employee becomes unfit for a particular class of job but is fit for another class which is offered to him by the employer, the workman is entitled to claim compensation only on the basis of partial disablement and not total disablement

Employer’s Liability for Compensation [Section 3] :

Employer’s Liability for Compensation [Section 3] An employer is liable to pay compensation to a work man: 1) For personal injury caused to him by accident, and 2) For any occupational disease contracted by him.

Personal Injury :

Personal Injury Personal injury includes: i ) Must have been caused during the course of his employment ; and ii) Must have been caused by accident arising out of his employment. So the injury should be caused by accident by some mishap, unexpected or unforeseen The personal injury caused to the worker must have resulted in total or partial disablement of the workman for a period exceeding three days or it must have resulted in the death of the worker. The injury should not have been caused by accident which is directly attributable to: i ) The workman having been under the influence of drink or drugs at the time of the accident; ii) Willful disregard of instruction relating to safety precautions given by the employer; and/or iii) The willful disregard of the usage of the safety device or safety guard provided for the purpose of securing safety of the workman by the employer.

Occupational Disease:

Occupational Disease i ) An injury by accident within the meaning of the Act and compensation is payable to the workman who contracts such disease; ii) The types of employment which exposes the workman to occupational disease as well as the list of occupational diseases are contained in Schedule III of the Act. Schedule III is divided into three parts, viz., A, B and C No specific period of employment is necessary for a claim for compensation with respect to occupational diseases mentioned in Part A. For diseases specified in Part B the workman must be in continuous service of the same employer for a period of six months in the employment specified in that part. For diseases in Part C the period of employment would be such as is specified by the Central Government for each of such employment whether in the service of one or more employers.

Amount Of Compensation[Sec.4]:

Amount Of Compensation[Sec.4] The amount of compensation payable to a workman depends on : 1) The nature of the injury caused by accident. 2) The monthly wages of the workman concerned, and 3) The relevant factor for working out lump-sum equivalent of compensation amount as specified in Schedule IV (as substituted by Amendment Act of 1984). New Section 4 (as substituted by the Amendment Act of 1984) provides for compensation for: 1) Death; 2) Permanent total disablement; 3) Permanent partial disablement; and 4) Temporary disablement – total or partial.

Compensation For Death:

Compensation For Death In case of death resulting from injury, the amount of compensation shall be equal 50% of the monthly wages of the deceased workman multiplied by the relevant factor . Or an amount of Rs 1,20,000/- whichever is more. Example: A workman is employed in a factory on a monthly wage of Rs 3000. While working he met with an accident and dies on oct 2000. His date of birth is July 18 1970. The amount of compensation payable to his dependent would be 50* monthly wages* Relevant factor of age 30 /100 0r 1,20,000 whichever is higher 50* 3000* 207.98 = 3,11,970 Since Rs 311970 is more than 1,20,000 the compensation payable to him shall be Rs 311,970

Compensation For Permanent Total Disablement :

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 1,40,000/- whichever is more. For the above example the compensation would be 60* 3000* 207.98 = 3,74,365 Since Rs 3,74364 is more than 1,40,000 the amount of compensation payable should be Rs 3, 74,364

Compensation for Permanent Partial Disablement :

Compensation for Permanent Partial Disablement i ] the percentage of compensation payable is proportionate to the loss of earning capacity permanently caused by the scheduled injury. Thus, if the loss of earning capacity caused by an injury specified in Part II of Schedule I is 30 percent, the amount of compensation shall be 30 percent of compensation payable in case of permanent total disablement. ii) In the case of an injury not specified in Schedule I such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner ) permanently caused by the injury

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