THE WORKMEN COMPENSATION ACT, 1923

The workmen were entitled to compensation from the employer in case of personal injury caused by accident arising out of and in the course of employment. The amount of compensation is mainly dependent on incapacity or disability of workmen. Several amendments in the act provided benefits to the injured workman and in case of his death due to accident; to his dependents. This act was further amended in the year 2000. The important amendments are a) Workman looses his right to compensation if he is found at the time of accident, under the influence of drinks or drugs, willful disobedience of rules or disregard of safety devices. b) Wage limit increased from Rs. 1600/- wages c) The wages includes overtime, value of concession in the form of food, clothing, free quarter etc. d) All cases of fatal accidents are to be brought to the notice of Commissioner. e) A sub-contractor may indemnify his contractor if he has to pay compensation either to a principal or to a workman. f) The workman cannot claim benefits under this Act and ESI Act together. DEFINITIONS a. Commissioner means a Commissioner for Workmens Compensation appointed under Section 20. b. Compensation as provided by this Act. Once it is determined by the Commissioner, on the basis of a medical certificate, it cannot subsequently be upset by another doctor if the improvement found in the injured organ of the workman after some time.

c. Dependant First category: widow, minor legitimate or adopted son, unmarried legitimate or adopted daughter or widowed mother. Second category: if wholly dependent on the earnings of the workman at the time of his death, son or daughter who has attained the age of 18 years and who is infirm. Third category: if wholly or in part dependant, widower, parent, minor brother and sister, widowed daughter-in-law. d. Partial disablement Disablement of a temporary nature reduces earning capacity of a workman. e. Total disablement means such disablement, whether of a temporary or a permanent nature, as incapacitates a workman for all work which he was capable of performing at the time of the accident resulting in such disablement ; f. Wages includes any privilege or benefit which is capable of estimated such as free accommodation, DA, OT pay, food and clothing, bonus, traveling allowance pension contribution leave etc. Amount of Compensation depends on nature of injury which is divided into four heads 1. Death 2. Permanent total disablement 3. Permanent partial disablement 4. Temporary disablement whether permanent or partial The amount of compensation depends on age at the time of accident, injury factors, rate of pay at the time of accident as per Schedule 1 (Part 1 and 2) of the Act. List of occupational diseases under Schedule 3 also deserves compensation as above. Where ESI is applicable, WC Act does not become applicable. BUT excludes gratuity,