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1. DEPARTMENT OF FORENSIC MEDICINE AND TOXICOLOGY
WORKMEN’S COMPENSATION ACT
Presented by :
Akshay Maurya (13)
Akshay Soni (14)
Ankit Pathak (15)
Anmol Singh (16)
2. Content :
1. Objective/Aim
2. Definition of the Act
3. General Principles
4. Applicability of the Act
5. Schedules of act
6. Entitlement
7. Main Provisions of the Act
8. Definition related to act
9. Amount of Compensation payable & related aspects
10.Amendment and Changes
11.Limitation on Maximum Compensation
3. Objective :
● The workmen’s compensation act ,1923 aims to
provide workmen and their dependents some
relief in case of accident arising out of and in the
course of employment and causing either death
or disablement of workmen.
● The act imposes statutory liability upon the
employer to provide payment to employees
when they suffer from physical disabilities and
diseases during course of employment.
4. Definition of act :
• The workmen’s compensation act,1923 is one of the important
social security legislation. It aims at providing financial
protection to workmen and their dependents in case of
accidental injury by means of payment of compensation by the
employer.
• It came into force on the first day of july 1924.
5. General principles :
• There must be casual connection between the injury/death and
the work done in the course of employment.
• The responsibility is upon the applicant to show that it was the
work and the resulting strain which contributed to or aggravated
to injury/death.
• It is not necessary that the workman must be actually working at
the time of his death or that death must occur while he was
working or had just ceased to work.
6. Applicability of the Act :
• The act extends to the whole of india except the states/union
territories of Arunachal pradesh , Mizoram , Nagaland, Sikkim,
Daman and Diu and Lakshadweep.
• The Act applies to workers employed in any capacity specified in
schedule II of the act which includes factories,mines ,plantations,
mechanically propelled vehicles, construction work and certain
other hazardous occupations and specified categories of railway
servants.
7. Schedules of act :
Schedule I : list of injuries deemed to result in permanent total
disablement.
Schedule II : list of persons who are include in definition of
employees.A amendment of act in 2010 further added certain
employment. include railway ,crew of ship and
aircraft,drivers,helpers and mechanic of motor vehicles,person
recruited abroad by a company and employee by contractors.
Schedule III : list of occupational diseases.
Schedule IV : factors of working out lump sum equivalent of
compensation amount in case of permanent disablement and
death.
9. Employer is not liable when
1. Disablement not exceeding 3 days
2. Accident due to influence of drink, drugs .
3. The willful disobedience of the workmen to an order expressly
given, or to a rule expressly framed, for purpose of securing
the safety of employees.
4. The willful removal or disregard by the workmen of any safety
gaurd or other device which he knew to have been provided
for the purpose of securing the safety of employees.
10. Main provisions of the Act :
Under the Act , the state governments are empowered to appoint
commissioners for workmen’s compensation for
1. Settlement of disputed claims
2. Disposal of cases of injuries involving death
3. Revision of periodical payments. Sub-section (3) of Section 2 of the
Act, empowers the state government to extend the scope of the Act
to any class of the persons whose occupation are considered
hazardous after giving 3 months notice to be published in the official
gazette.
Similarly, under Section 3(3) of the Act , the state government are
empowered to add any disease to the list.
12. Employee
Mean person who is:
1. railway servent
2. crew of ship
3. crew of aircraft
4. Driver,cleaner,helper or mechanic of motor vehicles
5. Emloyes recurited abroad
6. Person employed in activites like manufacturing process,explosives
,mines ,ship loading /unloading,construction electrcity generation
and distribution.
7. “Employee “ does not include any person working in the capicity of
members of the armed forces of india.
13. Disablement
● Disablement means reduction in earning capacity.
● It may be temporary and permanent .
● It may be Total and partial.
Partial Disablement : can’t do employ work.
● Temporary partial disablement (broken leg)
Permanent partial disablement (loss of thumb)
Total Disablement : cant do any work.
● Temporary(break a bone,has a surgery)
● Permanent (loss of hand and foot)
14. Compensation :
If the employment is contributory cause or has accelerated
the disablement or death of employee…….in that case
employer would be liable for the compensation.
In case of death or total disablement , compensation must be paid through
the Commisssioner of Employees Compensation,appointed by the
Government
15. Compensation will be payable to :
• the employee in case of partial or total disablement.
or
• the dependants of employee in case of death.
16. Amount of Compensation Payable (sec 4)
1. When injury leads to death of the employee :
• Amount = 50% of the monthly wages * relevant factor
or
• Rs 1,20,000 (whichever is higher)
Funeral expenses of additional 5,000 Rs for death will also be given to the
dependent in addition to compensation
WAGE CEILING OF EMPLOYEE IS FIXED TO 15,000 (Amendment 2020)
One of the most important aspect of relevant factor is AGE
17. 2. When injury leads to permanent total disablement:
• Amount = 60% of the monthly wages * relevant factor
or
• Rs 1,40,000 (whichever is higher)
18. Time limit for disposal of cases relating to
compensation
The Compensation Commissioner shall dispose of the matter
relating to compensation within a period of 3 months from the
date of reference and intimate the decision in respect thereof
within the said period to the employee.
19. Amendment and changes
1.This act is now known as ‘Employee’s compensation Act’ (2017)
2.Throughout the Act where ‘workman’ or ‘workmen’ occur , the
words ‘Employees’ shall be substituted.
3.Clerical Employees are included in the definition of ‘Employee’
4.Compensation for death raised from 80,000 to 1,20,000.
5.Compensation for permanent total disablement raised from 90,000
to 1,40,000.
6.New subsection is added for medical reimbursement.
20. Limitation on maximum compensation
The maximum compensation payable is upon the following
scale (as per W.C. Amendment Act 2000)
• Fatal injury- Rs 4,57,080
• Permanent Total Disablement- Rs 5,48,496
• Permanent partial Disablement-According to incapacity caused
• Temporary Disablement- Rs 2000 per month upto a period of 5
years.