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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. Click to edit Master subtitle style


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. 4/6/12

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 4/6/12

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.



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 4/6/12 the age of 18 years and who is


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

Accident Compensationwhen 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 4/6/12

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 4/6/12 the service, or inherent in the nature

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 4/6/12 securing safety of workman, or


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.



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 PERMANENT DISABLEMENT In permanent total 4/6/12 FOR TOTAL case of 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 4/6/12


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 4/6/12 disablement In cases where such


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 4/6/12 commissioner may order: the

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


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 4/6/12


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, 4/6/12 Manipur, Tripura, Sikkim, Arunachal