WORKMEN’S COMPENSATION ACT, 1923

INTRODUCTION
The Workmen’s Compensation Act, 1923, was the first social security measure
introduced in Indian prior to independence. The statement of objects and
reasons appended to the Bill at the time of its introduction clearly indicates the need
to protect workmen from hardship arising from accidents due to the complexity
of modern industry.

OBJECT AND SCOPE OF THE ACT

The Act considers compensation payable by an employer to his workmen in the case
of an accident as a measure of relief and social security. It enables a
workman to get compensation irrespective of his negligence. It also lays down the
various amounts payable in case of an accident depending upon the type and extent of
injury. The employer now knows the amount of compensation he has to pay and is
saved of many uncertainties to which he was subject before the Act came into force.
Accordingly, payment of compensation is the main object of the Act. But yet, it
seeks to reduce the number of accidents, mitigates the effect of accidents by
providing suitable medical treatment, makes the industry more attractive to labour,
increases labour efficiency and provides for a cheaper and quicker disposal of
disputes relating to compensation, through special tribunals.

DEFINITIONS
Section 2 gives the definitions of the terms used in the Act. Some of the
important definitions are as follows:

PARTIAL DISABLEMENT [SECTION 2(1)(g)]

A disablement may be partial or total. A partial disablement only reduces the
earning capacity of a workman, while a total disablement incapacitates a
workman, from all work, which he was capable of performing at the time of the
accident. Partial disablement may be of temporary or permanent nature.
A temporary partial disablement means any disablement, which
temporarily reduces the earning capacity of workman in any employment in which
he was engaged at the time of the accident causing the disablement.

TOTAL PARTIAL
100 % or More Less than 100 %

Permanent partial (Could be

Permanent Total
engaged in all other jobs at
(Cannot do any work)
reduced salary)

Temporary Total
Disablement (Cannot be Temporary Partial (Can be
employed in the original employed in the original job
work with full salary) at reduced salary)

A permanent partial disablement means such a disablement as

permanently reduces the earning capacity of workman in every employment, which
he was capable of undertaking at the time of the accident causing the disablement.
But, every injury specified in part II of schedule I of this Act shall be deemed to result
in permanent partial disablement.
PERMANENT
(Disable ment or being unfit for all jobs)
TEMPORARY
(Di s abl e men t o r b e i n g unf it f o r tha t jo b ori g inall y don e )

The distinction between these two types of disablement depends on the fact as to
whether an injury results in reduction of earning capacity in all the employments hich
the workman was capable of doing or only in that particular employment in which
workman was engaged at the time of accident.

TOTAL DISABLEMENT [SECTION 2 (1)(l)]

Total disablement means such disablement as incapacitates a workman for all
work which he was capable of performing at the time of the accident resulting in
such disablement. In order to constitute total disablement, disablement must be
of such a character that the person concerned is unable to do any work and not
merely the work, which he was performing at the time of the accident.
 A total disablement may be temporary or permanent. A permanent total
disablement shall be deemed to result from
(a) The permanent total loss of the sight of both eyes; or
(b) From an injury specified in Part I of Schedule I or from any
combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity as specified in the
said Part II against those injuries, amounts to one hundred per cent or
more.
A carpenter suffered injury in the course of his employment, which
resulted in amputation of left hand above elbow. Since a carpenter cannot work with
one hand, disablement was held to be total and not partial [Pratap Narain
Singh Deo Vs Srinivas Sabata and another [AIR (1976) SC 222].