THE WORKMENS COMPENSATION ACT, 1923

Saket Jeswani Associate Professor, MBA,RCET, Bhilai

Saket Jeswani, Associate Professor, RCET, Bhilai

OBJECTIVE OF THE ACT

The object of the Act is to impose an obligation upon employers to pay compensation to workers for accidents arising out of and in the course of employment: pay compensation for the injury sustained to him.
Saket Jeswani, Associate Professor, RCET, Bhilai 3

Workmen compensation Act, 1923

1. The Workmens Compensation Act, 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. 2. It provides for payment by certain classes of employers to their workmen compensation for injury by accident.

Saket Jeswani, Associate Professor, RCET, Bhilai

Employers liability
1. The employer of any establishment covered under this Act, is required to compensate an employee : 2. 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 disablement whether total or partial, or Who has contracted an occupational disease.
Saket Jeswani, Associate Professor, RCET, Bhilai 5

THE EMPLOYER SHALL NOT BE LIABLE

1. In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days; In respect of any injury not resulting in death, caused by an accident which is directly attributable to the workmen having been at the time thereof under the influence or drugs, or the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen.

2.

3.

Saket Jeswani, Associate Professor, RCET, Bhilai

DISABLEMENT
1. Disablement means any loss of capacity to work or move 2. May result in loss or reduction of his earning capacity 3. Disablement may be 1) Total {sec.2.1(g)} 2) Partial {sec 2.1(l)} 3) Temporary 4) permanent

Saket Jeswani, Associate Professor, RCET, Bhilai

DISABLEMENT
1. Disablement, is said to be total when if Incapacitates a worker for all work
2. he was capable of doing at the time of the accident resulting in such disablement. "Total disablement" is considered to be permanent if a workman, as a result of an accident, suffers from the injury specified in Part I of Schedule I or suffers from such combination of injuries specified in Part l of Schedule I as would be the loss of earning capacity when totaled to one hundred per cent . Disablement is said to be permanent partial when it reduces for all times, the earning capacity of a workman in every employment which he was capable of undertaking at the time of the accident. Every injury specified in Part II of Schedule I is deemed to result in permanent partial disablement. Where the disablement is of a temporary nature and reduces the earning capacity of a workman in the employment in which he was engaged at the time of the accident it is "temporary partial disablement.

3.

4.

Distribution of Compensation
the employer will not be liable to pay compensation for any kind of disablement (except death) 1) Which does not continue for more than three days, 2) if the injury is caused when the workman was under the influence of drink or drugs or 3) willfully disobeyed a clear order or violated a rule expressly framed for the purpose of securing his safety or willfully removed or disregarded a safety device
Saket Jeswani, Associate Professor, RCET, Bhilai 9

Claims and Appeals

1. 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 the memorandum of appeal is accompanied by a certificate that the employer has deposited the amount of such compensation 3. The period of limitation for an appeal under Section 30 is sixty days

Saket Jeswani, Associate Professor, RCET, Bhilai

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Three approaches for settling workers compensation claims

1. Direct Settlement: The employer or its insurance company begins making what it thinks are the prescribed payments. The insurer sets the period over which payments will be made. Both factors are subject to review by the designated state agency. 2. Agreement Settlement: The injured employee and the employer or its insurance company work out an agreement on how much compensation will be paid and for how long. Typically the agreement is reviewed by the designated state agency.

3. Public Hearing: An injured worker can request a hearing. The hearing commission reviews the facts surrounding the injured workers case and renders a judgment concerning the amount and duration of compensation. Should the employee disagree with the decision rendered, civil action through the courts is an option.

The functions of the Commissioner

Settlement of disputed claims;

Disposal of cases of injuries involving death; and

Revision of periodical payments (Section 20).

Saket Jeswani, Associate Professor, RCET, Bhilai

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Saket Jeswani, Associate Professor, RCET, Bhilai

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