compenstaion final

8/7/2019 compenstaion final

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BY :-

SEEMA YADAV

PREETI CHAUDHARY

WORKMAN COMPENSATION ACT


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OBJECTIVES

The Workmen's Compensation Act, 1923, aims to provide

workmen and/or their dependents some relief in case of

accidents arising out of and in the course of employment and

causing either death or disablement of workmen.


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SCOPEANDCOVERAGE

The Act extends to the whole of India . The Workmen's Compensation (Amendment) Act,

2000. has brought all the workers within its ambitirrespective of their nature of employment i.e.whether employed on casual basis or otherwise than

for the purposes of the employer's trade or business. For the first time, casual labourers will be provided

compensation for death or disability. . Establishmentswhich are covered by the Employees State InsuranceAct, are outside the perview of this Act.


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EMPLOYEESENTITLED

Every employee including those employedthrough a contractor and also casualemployees, who suffers an injury in anyaccident arising out of and in the course of hisemployment, shall be entitled for compensation

under the Act. ' A person employed in afactory which is yet to commenceproduction would not be deprived of thebenefit of the provisions of the Act. Theworkman employed in a premises wheremanufacturing process is intended to be carriedon is not necessarily required to be actuallyconnected with manufacturing process. Anyperson engaged in such premises who iscontributing for the intendedmanufacturing process would be deemed tobe workman for the purpose of the Act.


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EMPLOYEESENTITLED

Whether Contractor is a Workman ?

Where a person entered into a construction

contract and agreed to work himself and also toemploy his own labour, while construction

material was to be supplied by the owner, and

the contractor died while working himself, it

was held that the dependents of the deceased

were entitled to compensation


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ADMINISTRATIVEAUTHORITY

The State Governments administer the

provisions of this Act through the

Commissioners appointed for specified areas.

The State Governments also make rules forensuring that the provisions of the Act are

complied with.


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ADMINISTRATIVEAUTHORITY

Jurisdiction of CommissionerAny matterunder this Act, to be done by or before aCommissioner, shall be done by or before theCommissioner for the area in which

(a) the accident resulting in the injury, tookplace or

(b) the workman, or his dependent, claimingthe compensation ordinarily resides, or

(c) the employer has his registered office.

Where a Commissioner is satisfied that anyproceedings can be more convenientlydisposed of by any other Commissioner, hemay transfer the matter to such otherCommissioner.


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DEFINITION

DEPENDANT

Dependant means any of the following relatives of adeceased workman, namely:

a widow, a minor legitimate or adopted son and unmarried

legitimate or adopted daughter, or a widowed mother, and if wholly dependant on the earnings of the workman at the time

of his death,

a son or a daughter who has attained the age of 18 years and whois infirm,

And any of the following wholly or partly dependent on the

workman at the time of his death a widower, a parent other than a widowed mother, a minor

illegitimate son, a unmarried illegitimate daughter, a widoweddaughter in law, a minor child of the deceased son & daughter &a paternal grandparent if not the parent of the workman is alive.


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DISABLEMENT :

Injury caused to a workman by an accident

ordinarily 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..,


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CONT..

Disablement, is said to be total when if Incapacitates a worker for allwork he was capable of doing at the time of the accident resulting insuch disablement.

"Total disablement" is considered to be permanent if a workman, as aresult of an accident, suffers from the injury specified in Part I ofSchedule I or suffers from such combination of injuries specified inPart tl of Schedule I as would be the loss of earning capacity whentotaled to one hundred per cent .

Disablement is said to be permanent partial when it reduces for alltimes, the earning capacity of a workman in every employment whichhe was capable of undertaking at the time of the accident. Every injuryspecified in Part II of Schedule I is deemed to result in permanentpartial disablement.

Where the disablement is of a temporary nature and reduces theearning capacity of a workman in the employment in which he wasengaged at the time of the accident it is "temporary partial disablement.


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ACCIDENT COMPENSATION-WHEN

PAYABLE

The employer of any establishment covered under this Act,

is required to compensate an employee:

who has suffered an 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 Employment

Accident arising out of and in the course of Employment

An accident arising out of employment implies a casual

connection between the injury and the accident and the work

done in the course of employment.


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WHAT ARE THE CONDITION FOR RECEIVING COMPENSATION

FOR PERSONAL INJURY CAUSED BY THE ACCIDENT ?

The three tests for determining whether anaccident arose out of employment are :

At the time of injury workman must have beenengaged in the business of the employer and

must not be doing something for his personalbenefit;

That accident occurred at the place where hewas performing his duties; and

Injury must have resulted from some riskincidental to the duties of the service, orinherent in the nature or condition ofemployment.


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WHEN IS AN EMPLOYER NOT LIABLE TO PAY

COMPENSATION ?

BUT, the employer shall not be liable to pay compensation in thefollowing cases:

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 ruleexpressly 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 ofsecuring his safety.


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AMOUNT OF COMPENSATION SECTION 4

The amount of compensation payable to a workmandepends 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 ofcompensation amount as specified in Schedule IV.

There is no distinction between an adult and a minorworker with respect to the amount of compensation.


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COMPENSATION FORDEATH

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 80,000/- whichever is

more.


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COMPENSATION FOR PERMANENT PARTIAL

DISABLEMENT

Where permanent partial disablement occurs,the amount of compensation payable shall beas follows:

in case of an injury specified in part II of theschedule I, the amount of compensation shallbe such percentage of the compensation whichwould have been payable is the percentage ofloss of earning capacity caused by that injury.

in case of an injury not specified in schedule I,such percentage of the compensation is payablewhich is proportionate to the loss of earningcapacity (as assessed by a qualified medicalpractitioner) permanently caused by the injury.


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COMPENSATION FOR TEMPORARY

DISABLEMENT (TOTAL OR PARTIAL)

If the temporary disablement, whether total orpartial results from the injury, the amount ofcompensation shall be a half monthly paymentof the sum equivalent to 25% of the monthlywages of the workman to be paid inaccordance with the provisions.

The half monthly payment shall be payable onthe sixteenth day from the date of disablement

In cases where such disablement lasts for aperiod 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 ofdisablement.


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COMPENSATION TO BE PAID WHEN DUE

AND PENALTY FORDEFAULT (SECTION

4A)

As per this section, compensation has to paid as soon asit is due

In case the employer does not accept the liability ofpaying the compensation, he is bound to make

provisional payment to the extent of the liability heaccepts. Such amount has to be deposited with thecommissioner or paid to the workman. If he defaults, thecommissioner may order:

the payment of the amount with interest at12 % per

year if the default to be unjustifiable then thecommissioner may order payment of a further sumnot exceeding 50% of the amount due, by way ofpenalty.


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PAYMENT OF COMPENSATION TO

CONTRACT LABOUR

The principal employer is liable to pay

compensation to contract labour in the same

manner as his departmental labour. He is

entitled to be indemnified by the contractor.

The principal employer shall not however be

liable to pay any interest and penalty leviable

under the Act


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OCCUPATIONALDISEASES

Workers employed in certain types of

occupations are exposed to the risk of

contracting certain diseases which are peculiar

and inherent to those occupations. A worker

contracting an occupational disease is deemed

to have suffered an accident out of and in the

course of employment and the employer is

liable to pay compensation for the same.


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STATEMENTOFFATAL

ACCIDENTS

Where a commissioner receives information from anysource that a workman has died as a result of an accidentarising out of and in the course of his employment, hemay require the employer, by serving upon him aregistered notice, to submit within 30 days of its service,

a statement in the prescribed form ; (a) Giving the circumstances attending the death of the

workman, and

(b) Indicating whether he is or, is not, liable to payaccident compensation.

If the employer feels that he is liable to paycompensation, he shall make the deposit within 30 daysof the service of the notice. If the employer disclaims hisliability, he should indicate the grounds for suchdisclaimer.


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ACCIDENTREPORT

Where the accident results in death or serious

bodily 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


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MODEOFPAYMENT

The employer becomes liable to pay the compensation as soon as the personalinjury was caused to the workman by the accident which arose out of and inthe course of the employment.

The amount of compensation should be paid as soon as it falls due. It will becomputed on the date of accident. If the amount is not paid within one month

from the date it fell due, the Commissioner may after giving reasonableopportunity of being heard, direct the employer to pay simple interest @ 12%p.a. or at such higher rate as may be specified not exceeding the. Maximumlending rate of any scheduled bank. Besides, if there is no justification for thedelay, the Commissioner may after giving reasonable opportunity of beingheard, direct the employer to pay a further sum not exceeding 50% of thecompensation, by way of penalty. The amount of penalty (earlier payable to

the Government) and also interest shall be paid to the workman or hisdependent as the case may be

The half-monthly installments of compensation (payable in case of temporarydisablement) should be paid within the time specified. The half-monthlyinstallments can be converted into a lump sum payment, by an agreementbetween the employer and the employee or by applying to the Commissioner.


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COMPENSATIONTOBEDEPOSITED

WITHCOMMISSIONER

The amount of compensation is not payable to the workman directly. Itis generally deposited along with the prescribed statement, with theCommissioner who will then pay it to the workman. Any. paymentmade to the workman or his dependents, directly, in the followingcases will not be deemed to be a payment of compensation :

(i) in case of death of the employee;

(ii) in case of sump sum compensation payable to a woman or a minor or aperson of unsound mind or whose entitlement to the compensation is indispute or a person under a legal disability.

Besides, compensation of Rs. 10 or more may be deposited with theCommissioner on behalf of the person entitled thereto.

The receipt of deposit with the Commissioner shall be a sufficientproof of discharge of the employer's liability.


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NOTICE OF ACCIDENT

A 'notice of accident' should be sent to the

Commissioner, by the concerned employee as

soon as practicable after the happening thereof.

The notice should contain such particulars as

the name and address of the person injured, the

date and cause of accident, etc. A Copy of the

notice should also be sent to the establishment

wherein he was employed. The notice of

accident may be served either personally or byregistered post or by means of an entry in the

notice-book maintained by the employer.


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MEDICALEXAMINATION

The employer may get the concerned workmanexamined by a qualified medical practitioner,within 3 days from receiving the notice ofaccident. The employee must present himself

for such examination otherwise he shall loosehis right to the compensation.

Failure of employer to have the workmanmedically examined does not debar him fromchallenging the medical certificate produced by

the workman.


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ATTACHMENTANDASSIGNMENTOF

COMPENSATION

No compensation payable under this Act,

whether in lump sum on half-monthly

payments, can be attached, charged or passed

on to any person other than the workman by

operation of law, nor can it be set-off against

any other claim.


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OBLIGATIONSOFEMPLOYERS

To pay compensation for an accident suffered by an employee, inaccordance with the Act.

To submit a statement to the Commissioner (within 30 days of receivingthe notice) in the prescribed form, giving the circumstances attending the

death of a workman as result of an accident and indicating whether he isliable to deposit any compensation for the same.

To submit accident report to the Commissioner in the prescribed formwithin 7 days of the accident which results in death of a workman or aserious bodily injury to a workman.

To maintain a notice book in the prescribed from at a place where it isreadily accessible to the workman.

To submit an annual return of accidents specifying the number of injuriesfor which compensation has been paid during the year, the amount of suchcompensation and other prescribed particulars.


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OBLIGATIONSOFEMPLOYEES

To send a notice of the accident in the

prescribed form, to the Commissioner and the

employer, within such time as soon as it is

practicable for him. This notice is precondition

for the admission of the claim for

compensation.

To present-himself for medical examination, if

required by the employer.


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THANK YOUTHANK YOU

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