2. Eligibility for compensation
Part 1: Is the injured person a workman?
Part 2: Did the work injury disable him for
more than 3 days?
Part 3:Did the accident arise in the course of
his employment?
> Notional extension of employment
Part 4:Did the accident arise out of his
employment?
Situations when worker is not compensated
3. Compensation computation
• Fatal injuries
{40% monthly wages of the deceased} X {relevant factor} mentioned
in schedule 4
subject to a minimum of Rs 20000
• Permanent / total disablement
{50% monthly wages of the deceased} X {relevant factor}
Subject to minimum of Rs 24000
• Permanent partial disablement
> (schedule I, part II ) list of permanent partially disabling injuries
> amount of compensation payable for total disablement is calculate
> then % of that as indicated by the injury in schedule I, part II is taken
• Temporary disablement
25% of workmen’s actual wages
4. Procedure for compensation
• Notice of accident
• Medical examination
• Claim for compensation
• Registration of the compensation
agreements
• Commissioner for workmen’s
compensation
• appeal
5. Some special cases
Jharkand high court DB: Project officer, Giddi ’A’ colliery CCL, Hazaribagh Vs.
Sanjay Prasad Chaurasia & another 2005 ILLJ 891
The workmen’s compensation act, 1923 –Section 2(d) and 10-A
child in the mothers womb at the time of its father- workers death is
‘dependent’. However, claim made by the child dependent after
attaining majority, is barred by limitation
6. Kerela high court : V. Sukumaran Vs Union of India, 2005 Lab IC 2285
The workmen’s compensation act ,1923- section 4-Osteoarthrits
was not an occupational disease and hence the compensation
under the act was not payable. The disease must be attributable
to a specific injury arising out of and in the course of
employment.
7. Orissa high court: National insurance company Ltd. Vs. Bijay Kumar Sahu
2002 Lab IC ,1026
The workmen’s compensation act ,1923- section 4-
Powers of W.C. Commissioner to mould relief- the
W.C. Commissioner has the powers to award
compensation for temporary disablement even though
the workman has claimed compensation for permanent
disablement.
8. Modern Work Environment
BPO and ITES
• Worksmen Compensation Act accepts owner’s Cab as the notional
extension of work
• This Cab may be owned by the company or hired from any private
contractor
• An employee who meets with any accident while in the owner’s cab
may be compensated under this act
• As a HR personnel we should make company cab mandatory in the
interest of employees, in night shifts
• This will also help in reducing the chances of litigation
9. Working out of office premises or from home
• If a person meets with an accident on the road while on his duty,
will be compensated (notional extension of work)
eg. A salesman, meets with an accident while on a journey to meet
a client will be compensated under the act
• In it’s present form WC Act cannot cover employees working from
their home
• It is difficult to prove the relationship between the injury and work in
such situations
• Its better to cover employees under various medical insurances to
protect them
10. Stress related to work
• Various research have proved that stress related diseases like
Hyper-tension, Ulcers, Hemorrhage and Insomnia are on increase
• They also associate it with work related stress
• If an employee is able to establish the relationship between his
disease and work, then he is eligible to get compensation
• It has to be proved on the basis of the report by a qualified doctor
under the law
• As preventive measures we should try to create a work environment
to avoid unnecessary stress
• Regular health check ups
11. Section XII
• The employer is made liable to pay his contractor’s
workman where he employs a contractor for trade or
business
• CASE: In state of Maharashtra Vs Mahadeo Krishna
Waghmode, [(1994) 2 LLN 829]
• The Bombay High Court observed that if the ESIS
Hospital had a claim of indemnification by the contractor
in respect of compensation payable to the dependants of
the deceased, it was for the hospital to adopt appropriate
proceedings.
12. Contd…
• If the contractor is not a genuine contractor, and is
merely an agent of the (principal) employer, Section XII
would not come into play and it would be only the
principal’s liability.
• In S. Kaloo & Sons. Vs Ofatannessa Bibi [42 CWN
803(Cal)], the Calcutta High Court held that the
deceased had been employed directly under the former;
and that if there was any contract, it was not a contract
to do the whole or any part of the work, but merely a
contract for the supply of labour at a certain rate of
wages per head.
13. Sub-Section (1) of Section XII
• In order to come within the aforesaid, the principal in the
course of the purpose of his trade must have entered
into a contract with the contractor and also the work
which is the subject-matter of the contract should
ordinarily form the whole or part of the business.
• In Rabia Md. Vs Agent, GIP Rly. [AIR 1929 Bom 179:
(1929) ILR 53 Bom 203] the Bombay High Court held
that the case did not fall within sub-section (1)
• In Payyannur Educational Society Vs Narayani, [(1996) 3
Supp LLJ 1212] the Kerala High Court rejected the
appellant’s contention.
14. Sub-Section (2) of Section XII
• It provides that the principal employer will be
entitled to be indemnified by the contractor in
case the former is required to pay compensation
to the contractor’s employees.
• In Triveedhi Peerayya Vs Executive Engineer,
Dam Division, N.S. Dam, Vijayapuri North
[(1988) 2 LLN 483 AP] the court observed that
the negligence was on the part of the principal
employer and so, was not entitled to be
indemnified by the contractor.
15. Sub-Section (4) of section XII
• The provisions shall not apply in any case
elsewhere than on, in, or about the
premises.
• In Bhuvaneswari Rice Mill, Guntur Vs
Mannava Pullayya [AIR 1964 AP 392], the
court observed that the accident occurred
at a place where the work in question was
being executed.
