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THE WORKMENSCOMPENSATION

ACT, 1923

Saket Jeswani

Associate Professor,

MBA,RCET, Bhilai

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OBJECTIVE OF THE ACT

The object of the Act is to imposean obligation upon employers to pay

compensation to workers foraccidents arising out of and in thecourse of employment: pay

compensation for the injurysustained to him.

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Workmen compensation Act, 19231. The Workmens Compensation Act, aims to

provide workmen and/or their dependents somerelief in case of accidents arising out of and in the

course of employment and causing either deathor disablement of workmen.

2. It provides for payment by certain classes of

employers to their workmen compensation forinjury by accident.

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Employers liability1. The employer of any establishment covered

under this Act, is required to compensate anemployee :

2. Who has suffered an accident arising out of andin the course of his employment, resulting into (i)death, (ii) permanent total disablement, (iii)

permanent partial disablement, or (iv) temporarydisablement whether total or partial, orWho has contracted an occupational disease.

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THE EMPLOYER SHALL NOT BE LIABLE1. In respect of any injury which does not result in the total or

partial disablement of the workmen for a period exceedingthree days;

2. In respect of any injury not resulting in death, caused by anaccident which is directly attributable to the workmenhaving been at the time thereof under the influence ordrugs, or

3. the willful disobedience of the workman to an orderexpressly given, or to a rule expressly framed, for thepurpose of securing the safety of workmen.

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1. Disablement means any loss of capacity to work

or move

2. May result in loss or reduction of his earning

capacity3. Disablement may be

1) Total {sec.2.1(g)}

2) Partial {sec 2.1(l)}

3) Temporary4) permanent

DISABLEMENT

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1. Disablement, is said to be total when if Incapacitates a worker for all work

he was capable of doing at the time of the accident resulting in suchdisablement.

2. "Total disablement" is considered to be permanent if a workman, as aresult of an accident, suffers from the injury specified in Part I of Schedule Ior suffers from such combination of injuries specified in Part l of Schedule Ias would be the loss of earning capacity when totaled to one hundred per

cent .

3. Disablement is said to be permanent partial when it reduces for all times,the earning capacity of a workman in every employment which he wascapable of undertaking at the time of the accident. Every injury specified inPart II of Schedule I is deemed to result in permanent partial disablement.

4. Where the disablement is of a temporary nature and reduces the earningcapacity of a workman in the employment in which he was engaged at thetime of the accident it is "temporary partial disablement.

DISABLEMENT

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Distribution of Compensation

the employer will not be liable to pay compensationfor any kind of disablement (except death)

1) Which does not continue for more than threedays,2) if the injury is caused when the workman was

under the influence of drink or drugs or3) willfully disobeyed a clear order or violated a rule

expressly framed for the purpose of securing hissafety or willfully removed or disregarded a safetydevice

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Claims and Appeals1. The claim shall be filed within a period of two years

of the occurrence of the accident or death.

2. An appeal by an employer against an award of

compensation is incompetent unless thememorandum of appeal is accompanied by acertificate that the employer has deposited theamount of such compensation

3. The period of limitation for an appeal under Section30 is sixty days

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Three approaches for settling workerscompensation claims

1. Direct Settlement: The employer or its insurance companybegins making what it thinks are the prescribed payments. Theinsurer sets the period over which payments will be made. Bothfactors are subject to review by the designated state agency.

2. Agreement Settlement: The injured employee and theemployer or its insurance company work out an agreement onhow much compensation will be paid and for how long.Typically the agreement is reviewed by the designated stateagency.

3. Public Hearing: An injured worker can request a hearing. Thehearing commission reviews the facts surrounding the injuredworkers case and renders a judgment concerning the amountand duration of compensation. Should the employee disagreewith the decision rendered, civil action through the courts is an

option.

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The functions of the Commissioner Settlement of disputed claims;

Disposal of cases of injuries involving death; and

Revision of periodical payments (Section 20).

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