Workmen Compensation Act 1923

WORKMEN 'S COMPENSATION ACT 1923

Workmen's Compensation Act 1923 is central legislation which provides for payment of compensation for injuries suffered by a workman in the course of and arising out of his employment according to the nature of injuries suffered and disability incurred, where death results from the injury, the amount of compensation is payable to the dependants of the workmen.
APPOINTMENT OF COMMISSIONER
All the Deputy Labour Commissioner have been appointed as Commissioner under Workmen's Compensation Act. Where an employer is in default in paying the compensation due under this Act, within one month from the date it fell due, the Commissioner shall
a) Direct that the employer in addition to the amount of arrears, pay simple interest there on at the rate of 12% per annum or on such higher rates.
b) Commissioner has the power under the Act to impose penalty and the interest on the cleared amount as per the provision of the act.
During the period 2002, 535 claims were made and upto September 2003, 633 claims have been decided by the Commissioners appointed under the Act.

Workmen's Compensation Act, 1923: Provisions and Applicability
As on March 06, 2007
The Workmen's Compensation Act, 1923 is one of the important social security legislations. It aims at providing financial protection to workmen and their dependants in case of accidental injury by means of payment of compensation by the employers. This Act makes it obligatory for the employers brought within the ambit of the Act to furnish to the State Governments/Union Territory Administrations annual returns containing statistics relating to the average number of workers covered under the Act, number of compensated accidents and the amount of compensation paid. Applicability of the Act The Act extends to the whole of India except the States/Union Territories of Arunachal Pradesh, Mizoram, Nagaland, Sikkim and Daman & Diu and Lakshadweep.The Act applies to workers employed in any capacity specified in Schedule II of the Act which includes Factories, Mines, Plantations, Mechanically Propelled Vehicles, Construction Work and certain other Hazardous Occupations and specified categories of Railway Servants. Main Provisions and Scope of the Act Under the Act, the State Governments are empowered to appoint Commissioners for Workmen's Compensation for (i) settlement of disputed claims, (ii) disposal of cases of injuries involving death, and (iii) revision of periodical payments. Sub-section (3) of Section 2 of the Act, empowers the State Governments to extend the scope of the Act to any class of persons whose occupations are considered hazardous after giving three months notice to be published in the Official Gazette. Similarly, under Section 3(3) of the Act, the State Governments are also empowered to add any other disease to the list mentioned in Parts A and B of Schedule – II and the Central Government in case of employment specified in Part C of Schedule III of the Act. Compensation In case of death the minimum amount of compensation fixed is Rs,. 80,000 and Rs. 90,000 in case of permanent total disablement. The existing wage ceiling for computation of maximum amount of compensation is Rs. 4000. The maximum amount of compensation payable is Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement.

Workmen Compensation Act, 1923

An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident.
Whereas it is expedient to provide for the payment by certain classes of employers to their -workmen of compensation for injury by accident, it is hereby, enacted as follows.
PRELIMINARY
Section 1:Short title, extent and commencement.
(1) This Act may be called the Workmen's Compensation Act, 1923.
(2) It extends to the whole of India
(3) It shall come into force on the first day of July, 1924.
Section 2:Definitions.
(1) In this Act, unless there is anything repugnant in the subject or context,
(a) ***
(b) "Commissioner" means a Commissioner for Workmen's Compensation appointed under section 20;
(c) "compensation" means compensation as provided for by this Act;
(d) "dependant" means any of the following relatives of a deceased workman, namely:
(i) a widow, a minor legitimate [5a] [or adopted] son, and unmarried legitimate [5a] [or adopted] daughter-, or a widowed mother; and
(ii) if wholly dependent 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 dependent 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 [6] [or adopted] if married and a minor or if widowed and a minor,
(d) a minor brother or an unmarried sister or a widowed sister if a minor,
(e) a widowed daughter-in-law,
(f) a minor child of a pre-deceased son,
(g) a minor child of a pre-deceased daughter where no parent of the child is alive, or
(h) a paternal grandparent if no parent of the workman is alive.
Explanation. -For the purposes of sub-clause (ii) and items and (g) of sub-clause (iii), references to a son, daughter or child include an adopted son, daughter or child respectively]
(e) "employer" includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him;
(f) "managing agent" means any person appointed or acting as the representative of another person for the purpose of carrying on such other person's trade or business, but does not include an individual manager subordinate to an employer;
(ff) "minor" means a person who has not attained the age of 18 years
(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 I] shall be deemed to result in permanent partial disablement;
(h) "prescribed" means prescribed by rules made under this Act;
(i) "qualified medical practitioner" means any person registered [10] [* * *] under any [11] [Central Act, Provincial Act, or an Act of the Legislature of a [12] [State]] providing for the maintenance of a register of medical practitioners, or, in any area- where no such last-mentioned Act is in force, any person declared by the State Government, by notification in the Official Gazette, to be a qualified medical practitioner for the purposes of this Act;
(j)***
(k) "seaman" means any person forming part of the crew of any [***]ship, but does not include the master of [the] ship;
(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 the accident resulting in such disablement :
Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of Schedule I or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent or more]
(m) "wages" includes any privilege or benefit which is capable of being estimated in money, other than a traveling allowance or the value of any travelling concession or a contribution paid by the employer a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment;
(n) "workman" means any person [***] who is -
(i) a railway servant as defined in [20] [Clause (34) of section 2 of the Railway Act, 1989 (24 of 1989)], not permanently employed in any administrative district or sub-division office of a railway and not employed in any such capacity as is specified in Schedule II, or
(ia) (a) a master, seaman or other member of the crew of a ship,
(b) a captain or other member of the crew of an aircraft,
(c) a person recruited as drive, helper, mechanic, cleaner or in a other capacity in connection with a motor vehicle,
(d) a person recruited for work abroad by a company, and who is employed outside India in any such capacity as is specified in Schedule II and the ship, aircraft or motor vehicle, or company, as case may be, is registered in India, or]
(ii) employed [***] [***] in any such capacity as is specified Schedule 11, whether the contract of employment was made before or after the passing this Act and whether such contract is expressed or implied, oral or in writing but does not include any person working in the capacity of a member of the Armed Forces of the Union] [* **]; and any reference to a workman who h been injured shall, where the workman is dead, include a reference to h dependants or any of them.
(2) The exercise and performance of the powers and duties of a local authority of any department [26] [acting on behalf of the Government] shall, for the purpose of this Act, unless a contrary intention appears, be deemed to be the trade business of such authority or department.
(3) The Central Government or the State Government, by notification in the Official Gazette, after giving not less than three months' notice of its intention so to do, may, by a like notification, add to Schedule II any class of persons employed in any occupation which it is satisfied is a hazardous occupation, and the provisions of this Act shall thereupon apply, in case of a notification by the Central Government, within the territories to which the Act extends, or, in the case of a notification by the State Government, within the State, to such classes of persons:
Provided that in making addition, the Central Government or the State Government, as the case may be, may direct that the provisions of this Act shall apply to such classes of persons in respect of specified injuries only.