 It extends to whole of India.

 It seeks to compensate the workman injured.

 This act does not apply to those areas which are
covered by Employee’s State Insurance Act, 1948
and members of Armed Forces of the Union.
Sec 2 (c) "compensation" means compensation as
provided for by this Act.
 DEPENDANT Sec 2 (d)
"dependent" means any of the following
relatives of a deceased workman namely:
(i) a widow a minor legitimate or adopted son
an unmarried legitimate or adopted
daughter or a widowed mother; and
(ii) 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;
(iii) if wholly or in part dependant on the
earnings of the workman at the time of his
death-
(a) a widower
(b) a parent other than a widowed mother
(c) a minor illegitimate son, an unmarried
illegitimate daughter or a daughter
legitimate or illegitimate or adopted
if married and a minor or if widowed
and minor
(d) a minor brother or an unmarried sister
or a widowed sister if a minor
(e) a widowed daughter-in-law
 "minor" means a person who has not
attained the age of 18 years
 Sec 2(g) “Partial disablement" means where the
disablement is of a temporary nature such
disablement as reduces the earning capacity of a
workman in any employment in which he was
engaged at the time of the accident resulting in
the disablement and where the disablement is of
a permanent nature such disablement as
reduces his earning capacity in every
employment which he was capable of
undertaking at that time :
 Provided that every injury specified in Part II of
Schedule shall be deemed to result in permanent
partial disablement;
 Sec 2 (l) TOTAL DISABLEMENT- means
such disablement, whether of a temporary or
permanent nature, as incapacitates a workman
for all work which he was capable of performing
at the time of accident resulting in such
disablement
provided that permanent total disablement is to
be deemed to result from every injury in Part I of
Schedule I or combination of injuries specified in
Part II where the aggregate percentage of loss of
earning capacity amounts to one hundred
percent or more.
 WORKMAN- means any person who is
(i) railway servant not permanently employed in
any office and not employed in any capacity as
is specified in Schedule II
(ii) crew of a ship, aircraft, motor vehicle, a
person recruited for work abroad by a company
and employed in capacity specified in Schedule
II and it is registered in India, or
(iii) employed in any capacity specified in
Schedule II
 If personal injury is caused to a workman by
accident arising out of and in the course of
employment, his employer shall be liable to pay
compensation in accordance with the provisions
of this Chapter
 Provided the employer shall not be so liable
(a) if injury does not result in total or partial
disablement for a period not exceeding three
days
(b) if injury, not resulting in death or permanent
total disablement, caused by accident directly
attributable to
(i) workman having been at that time under the
influence of drink or drugs, or
(ii) wilful disobedience of the workman to order
expressly given or rule expressly framed for
securing safety of workmen
(iii) wilful removal or disregard by the workman
of safety guard provided to him
 (2) If a workman employed in any employment
specified in Part A of Schedule III contracts any
disease specified therein as occupational disease
peculiar to that employment, or
whilst in service of an employer for a continuous
period of not less than six months under him in
any employment specified in Part B of Schedule
III, or
whilst in service of one or more employers for a
continuous period as Central Government may
specify in any employment specified in Part C of
Schedule III
contracts any disease specified therein as
occupational disease peculiar to that
employment,
the contracting of the disease is to be deemed to
be an injury by accident, unless contrary is
proved, arisen out of and in the course of
employment
provided that if it is proved that the workman
contracted the occupational disease in any
employment in Part C within the specified period
and the disease has arisen out of and in the
course of employment
provided further that if it is proved that the
workman having served in any employment in
Part B or part C for a continuous period specified
therein contracted the occupational disease after
the cessation of service and the disease has
arisen out of and in the course of employment
 the contracting of the disease is to be deemed to
be an injury by accident within the meaning of
this section
(2A) If workman employed in any employment
specified in Part C under more than one
employer, all the employers are to be liable to
pay compensation in such proportion as the
Commissioner may deem just
(3) Central Government may add to Schedule
(4) Except as provided in (2), (2A) and (3) above
no compensation is payable unless disease is
directly attributable to a specific injury
 (1) Compensation is to be paid as soon as it is
due
(2) Employer is to be bound to make payment
based on the extent of liability he accepts
depositing it with Commissioner or making it to
workman
(3) Where employer is in default in paying
compensation within one month from date due
the Commissioner shall
(i) direct the employer to pay in addition to
arrears simple interest at rate of 12% p.a. and
(ii) penalty not exceeding 50%
 Monthly wages
(a) If workman was in service for past 12 months
- 1/12th of total wages
(b) If workman was in service for less than a
month – average monthly wages of workman
doing same work under the same employer
(c) Average daily wages x 30
 Distribution of compensation [Sec 8]
 Any other sum amounting to not less than ten rupees
which is payable as compensation may be deposited with
the Commissioner on behalf of the person entitled
thereto.
 The receipt of the Commissioner shall be a sufficient
discharge in respect of any compensation deposited with
him.
 On the deposit of any money under sub-section (1) as
compensation in respect of a deceased workman the
Commissioner shall if he thinks necessary cause notice to
be published or to be served on each dependant in such
manner as he thinks fit calling upon the dependants to
appear before him on such dates as he may fix for
determining the distribution of the compensation.
 If the Commissioner is satisfied after any inquiry which he
may deem necessary that no dependant exists he shall
repay the balance of the money to the employer by whom
it was paid.
 Section 10(1)- Notice and claim- No claim for
compensation is to be entertained by the
Commissioner unless notice of accident is given
in manner provided within two years of accident
or death
Two years is to be counted from the first day as
follows
- If accident is contracting of occupational
disease, the first day of continuous absence of
the workman because of it
- In the event of partial disablement, the first
day he gives notice
 Section 10B
Report of fatal accidents and serious bodily
injuries - within seven days

 Section 11
Medical examination - If notice of accident has been given
and employer has arranged free medical examination within
three days, workman is to submit for it. Workman receiving
half monthly payment, if required is to submit. If workman
refuses, his right to compensation is suspended
 Whoever -
 (a) fails to maintain a notice-book which he is
required to maintain under sub-section (3) of
section 10 or
 (b) fails to send to the Commissioner a statement
which he is required to send under sub-section
(1) of section 10A or
 (c) fails to send a report which he is required to
send under section 10B or
 (d) fails to make a return which he is required to
make under section 16 shall be punishable with
fine which may extend to Rs. 5000.