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Workmens compensation act 1923

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Objectives
The Act, aims to provide workmen and/or their dependents some relief or compensation in case of accidents arising out of and in the course of employment and causing either death or disablement (partial or total) of workmen.

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Commissioner
Sec.2(1)(b) Commissioner means a Commissioner for Workmens Compensation appointed under Sec.20.

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Dependant[Sec.2(1)(d)]
Dependant means any of the following relatives of a deceased workman, namely:
(I) a widow, a minor legitimate or adopted son and unmarried legitimate or adopted daughter, or a widowed mother. (II) 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 who is infirm. (III) And any of the following were 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 or a daughter legitimate or illegitimate or adopted if married & a minor or if widowed & minor, a minor brother or an unmarried sister or a widowed sister if a minor, a widowed daughter-in-law, a minor child of pre-deceased son & daughter where no parent of the child is alive & a paternal grandparent if not the parent of the workman is alive.

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Disablement
Disablement means loss of capacity to work or to move. Disablement of workman may result in loss or reduction of his earning capacity. In the later case, he is not able to earn as much as he used to earn before his disablement. Disablement may be (1) partial, or (2) total. Further it may be (i) permanent, or (i) temporary.

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Partial disablement-2.1(g)
This means any disablement as reduces the earning capacity of a workman as a result of some accident. It may be temporary or permanent. 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 the accident resulting in the disablement. Permanent partial disablement is one which reduces the earning capacity of a workman in every employment which he was capable of undertaking at that time of injury.
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Total disablement-2.1(l)
Total disablement 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

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Employers liability for compensation Section 3 1. accident 2. occupational disease (schudle III)

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SECTION 3(1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter II of workmen's compensation act 1923.

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Employment Personal injury Accident Arising out of and in the course of employment

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OCCUPATIONAL DISEASES section 3(2)

Part A of schedule III ( no time limit) Part B of schedule III ( service not less than 6 months) Part C of schedule III ( service one or more employer and C.G. may specify the time limit) provided (a) less than the time period (b) arising out and in the course of employment + accident

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Proportionate liability

Section 3 (2 A)

If a workman employed in any employment specified in Part C of Schedule III contracts any occupational disease peculiar to (belong to) that employment, the contracting whereof is deemed to be an injury by accident within the meaning of this section, and such employment was under more than one employer, all such employers shall be liable for the payment of the compensation in such proportion as the Commissioner may, in the circumstances, deem just.

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Section 3(4) no compensation shall be payable to a workman in respect of any disease unless the disease is directly attributable to a specific injury by accident arising out of and in the course of his employment.

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Section 3 (5) alternative suit or claim

Nothing herein contained shall be deemed to confer any right to compensation on a workman in respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall be maintainable by a workman in any court of law in respect of any injury (a) if he, has instituted a claim to compensation in respect of the injury before a Commissioner; or (b) if an agreement has been come to between the workman and his employer providing for the payment of compensation in respect of the injury in accordance with the provisions of this Act.

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Employer is not Liable For Compensation section

3(1)

(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding three days; (b) in respect of any injury, not resulting in death or permanent total disablement, caused by an accident which is directly attributable to - (i) the workman having been at the time thereof 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 he knew to have been provided for the purpose of securing the safety of workmen, willfully disregard or removed the same.
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Scope of arising out of and in the course of employment

R.B.Moondra and Co. v. Mst. Bhanwari A.I.R 1970 ( patrol tank leak case) Smt. Koduri v. Polongi Atchamma 1969 (carring quarry materialhiting of rabbit.no compnsation) In Mackinnon Mackenzie and Co. Ltd. v. Miss Velma William AIR 1964 ( suicide case)

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Doctrine of notional extension

The period of going to or returning from employment are generally excluded and are not within the course of emplooyment. Travelling to and from is prima facie not in the course of employment but there may be reasonable extention in both the time and place and the workmen may be regarded as in the course of his employment even though he had not reached or had left his employers premises.

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Judicial understanding
St Helens Colliery Co. ltd. Hewlston (colliery comp. case) Works Manager Carriage and Wagon Shop, EIR v Mahabir AIR 1954 ( crushed by train .lags amputated)

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Some special features Wilful disobedience of order or safety devices proved by employer Relinquish the right of Compensation under agreement ( null and void) Contributory negligence (not applicable)

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Amount of compensation Section 4 Distributation of compensation Section 8

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Section 4.Amount of Compensation

Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:-1. Where death results from the injury;:-an amount equal to [fifty per cent] of the monthly wages of the deceased workman multiplied by the relevant factor or an amount of one lakh and twenty thousand rupees], whichever is more; 2. Where permanent total disablement results from the injury:-an amount equal to [sixty per cent] of the monthly wages of the injured workman multiplied by the relevant factor; or an amount of [One Lakha nd Forty Thousand Rupees whichever is more;

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Explanation I- For the purposes of clause (a) and clause (b), "relevant factor" in relation to a workman means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the workman on his last birthday immediately preceding the date on which the compensation fell due;

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Procedure for calculation Higher the age Lower the compensation Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman. Example : In case of death: Wages Rs.3000 PM Age 23 years Factor as schedule IV : 219.95 * 1,500 Amount of compensation Rs.3,29,935.00

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Example 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.
For the above example the compensation would be 60* 3000* 207.98 = 3,74,365 100 Since Rs 3,74364 is more than 90,000 the amount of compensation payable should be Rs 3, 74364
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3. Where permanent partial disablement results from the injury: i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and (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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More than one injury Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement has resulted from the injuries.

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4.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 1. In cases where such disablement lasts for a period of 28 days or more compensation is payable from the date of disablement 2. In other cases After the expiry of a waiting period of three days from the date of disablement.
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Name of Institution Distribution of Compensation[sec.8]

The compensation payable for death and The compensation payable to a woman or person of legal disability shall be through the commissioner only. Employer can make advance payment directly to dependents in case of death equivalent to three months salary of the deceased person. Employer is exonerated from his liability if he deposits the compensation amount with the commissioner within the stipulated time. The commissioner shall call all dependents of the deceased and determine the method for distribution of compensation among them. If no dependents are found then amount shall be refunded to the employer. On request by the employer the commissioner shall furnish the details of disbursement.
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THANK YOU
Presented By: Mr.Shamsuddin, ALS, AUR

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