The Workmen's Compensation Act aims to provide relief to workmen and their dependents for accidents arising from employment. It covers all workers, including casual laborers, and establishments not covered by ESI. Employers must compensate workers for death, permanent or temporary disablement, or occupational diseases. Compensation amounts depend on wages and injury type. The Act is administered by state authorities to ensure compliance.

1. Workman Compensation Act
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.

2. Scope and Coverage
• The Act extends to the whole of India .
• The Workmen's Compensation (Amendment) Act, 2000
has brought all the workers within its sphere
irrespective 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 laborers will be provided
compensation for death or disability.
• Establishments which are covered by the Employees
State Insurance Act, are outside the preview of this Act.
The coverage of this act is also to cooks employed in
hotels and restaurants.

3. Employees Entitled
• Every employee including those employed through a
contractor and also casual employees, who suffers an injury
in any accident arising out of and in the course of his
employment, shall be entitled for compensation under the
Act.
• A person employed in a factory which is yet to commence
production would not be deprived of the benefit of the
provisions of the Act.
• The workman employed in a premises where
manufacturing process is intended to be carried on is not
necessarily required to be actually connected with
manufacturing process.
• Any person engaged in such premises who is contributing
for the intended manufacturing process would be deemed
to be workman for the purpose of the Act.

4. Administrative Authority :
• The State Governments administer the
provisions of this Act through the
Commissioners appointed for specified areas.
• The State Governments also make rules for
ensuring that the provisions of the Act are
complied with.

5. Definition
• DEPENDANT:-Dependant means any of the following
relatives of a dead 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 who is 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 widowed daughter in law, a minor child of the dead son &
daughter & a paternal grandparent if not the parent of the
workman is alive.

6. Disablement
• Injury caused to a workman by an accident
usually 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

7. 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 implies a casual connection
between the injury and the accident and the work
done in the course of employment.

8. What are the condition for receiving
compensation for Personal Injury caused by the
accident ?
• At the time of injury workman must have been
engaged in the business of the employer and
must not be doing something for his personal
benefit;
• That accident occurred at the place where he
was performing his duties; and Injury must
have resulted from some risk incidental to the
duties of the service, or inherent in the nature
or condition of employment.

9. When is an Employer not liable to pay
compensation ?
• 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 rule expressly 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 of securing his safety.

10. AMOUNT OF COMPENSATION
• The amount of compensation payable to a
workman depends 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 of
compensation amount.
• There is no distinction between an adult and a
minor worker with respect to the amount of
compensation.

11. 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 80,000/- whichever
is more.
• 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
90,000/- thousand whichever is more.

12. COMPENSATION FOR PERMANENT
PARTIAL DISABLEMENT
• in case of an injury specified in part II of the
schedule I, the amount of compensation shall be
such percentage of the compensation which
would have been payable is the percentage of
loss of earning capacity caused by that injury. in
case of an injury not specified in schedule I, such
percentage of the compensation is payable which
is proportionate to the loss of earning capacity
(as assessed by a qualified medical practitioner)
permanently caused by the injury.

13. 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 In cases where such
disablement lasts for a period 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 of disablement.

14. COMPENSATION TO BE PAID WHEN DUE
AND PENALTY FOR DEFAULT (section 4A) :
• As per this section, compensation has to paid as soon
as it is due In case the employer does not accept the
liability of paying the compensation, he is bound to
make provisional payment to the extent of the liability
he accepts. Such amount has to be deposited with the
commissioner or paid to the workman. If he defaults,
the commissioner may order: the payment of the
amount with interest at12 % per year if the default to
be unjustifiable then the commissioner may order
payment of a further sum not exceeding 50% of the
amount due, by way of penalty.

15. Accident Report :
• Accident Report Where the accident results in
death or serious physical 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

16. COVERAGE UNDER THE ESI ACT, 1948
• Under Section 2(12) The Act is applicable to the factories employing
10 or more persons irrespective of whether power is used in the
process of manufacturing or not.
• Under Section 1(5) of the Act, the Scheme has been extended to
shops, hotels, restaurants, cinemas including preview theatre, road
motor transport undertakings and newspaper establishment
employing 20 or more persons.
• Further, u/s 1(5) of the Act, the Scheme has been extended to
Private Medical and Educational Institutions employing 20 or more
persons in certain States .
• The State Govt. has been requested to issue notification under
Section 1(5) on the lines of Section 2(12) keeping the threshold limit
for coverage as 10 employees instead of 20.
• The existing wage-limit for coverage under the Act, is Rs.15,000/-
per month (with effect from 01.05.2010).

17. Continue……
• AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been
implemented in different areas in the following States/Union Territories
STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.
UNION TERRITORIES
Delhi, Chandigarh and Pondicherry
• COVERAGE :
• Coverage(As on 31st March, 2010)
• No. of Insured Person family units 14300000
• No. of Employees 13896150
• Total No. of Beneficiaries 55484000
• No. of Insured women 2600250
• No. of Employers, etc 406499