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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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