workmen s compensation act 1923 196(2)

8/2/2019 Workmen s Compensation Act 1923 196(2)

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WORKMENS

COMPENSATION ACT-1923


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Eligibility for compensation

Part 1: Is the injured person a workman?Part 2: Did the work injury disable him for

more than 3 days?

Part 3:Did the accident arise in the course ofhis employment?

> Notional extension of employment

Part 4:Did the accident arise out of his

employment?

Situations when worker is not compensated


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Compensation computation

Fatal injuries{40% monthly wages of the deceased} X {relevant factor} mentionedin schedule 4

subject to a minimum of Rs 20000

Permanent / total disablement{50% monthly wages of the deceased} X {relevant factor}

Subject to minimum of Rs 24000

Permanent partial disablement> (schedule I, part II ) list of permanent partially disabling injuries

> amount of compensation payable for total disablement is calculate> then % of that as indicated by the injury in schedule I, part II is taken

Temporary disablement

25% of workmens actual wages


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Procedure for compensation

Notice of accident

Medical examination

Claim for compensation Registration of the compensation

agreements

Commissioner for workmenscompensation

appeal


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Some special cases

Jharkand high court DB: Project officer, Giddi A colliery CCL, Hazaribagh Vs.

Sanjay Prasad Chaurasia & another 2005 ILLJ 891

The workmens compensation act, 1923 Section 2(d) and 10-A

child in the mothers womb at the time of its father- workers death is

dependent. However, claim made by the child dependent after

attaining majority, is barred by limitation


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Kerela high court : V. Sukumaran Vs Union of India, 2005 Lab IC 2285

The workmens compensation act ,1923- section 4-Osteoarthrits

was not an occupational disease and hence the compensation

under the act was not payable. The disease must be attributable

to a specific injury arising out of and in the course ofemployment.


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Orissa high court: National insurance company

Ltd. Vs. Bijay Kumar Sahu2002 Lab IC ,1026

The workmens compensation act ,1923- section 4-

Powers of W.C. Commissioner to mould relief- the

W.C. Commissioner has the powers to awardcompensation for temporary disablement even though

the workman has claimed compensation for permanent

disablement.


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Modern Work Environment

BPO and ITES

Worksmen Compensation Act accepts owners Cab as the notional

extension of work

This Cab may be owned by the company or hired from any private

contractor

An employee who meets with any accident while in the owners cab

may be compensated under this act

As a HR personnel we should make company cab mandatory in the

interest of employees, in night shifts

This will also help in reducing the chances of litigation


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Working out of office premises or from home

If a person meets with an accident on the road while on his duty,

will be compensated (notional extension of work)

eg. A salesman, meets with an accident while on a journey to meet

a client will be compensated under the act

In its present form WC Act cannot cover employees working from

their home

It is difficult to prove the relationship between the injury and work in

such situations

Its better to cover employees under various medical insurances to

protect them


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Stress related to work

Various research have proved that stress related diseases likeHyper-tension, Ulcers, Hemorrhage and Insomnia are on increase

They also associate it with work related stress

If an employee is able to establish the relationship between his

disease and work, then he is eligible to get compensation It has to be proved on the basis of the report by a qualified doctor

under the law

As preventive measures we should try to create a work environmentto avoid unnecessary stress

Regular health check ups


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Section XII

The employer is made liable to pay his contractorsworkman where he employs a contractor for trade orbusiness

CASE: In state of Maharashtra Vs Mahadeo KrishnaWaghmode, [(1994) 2 LLN 829]

The Bombay High Court observed that if the ESIS

Hospital had a claim of indemnification by the contractorin respect of compensation payable to the dependants ofthe deceased, it was for the hospital to adopt appropriateproceedings.


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Contd

If the contractor is not a genuine contractor, and ismerely an agent of the (principal) employer, Section XIIwould not come into play and it would be only theprincipals liability.

In S. Kaloo & Sons. Vs Ofatannessa Bibi [42 CWN803(Cal)], the Calcutta High Court held that thedeceased had been employed directly under the former;and that if there was any contract, it was not a contractto do the whole or any part of the work, but merely acontract for the supply of labour at a certain rate ofwages per head.


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Sub-Section (1) of Section XII

In order to come within the aforesaid, the principal in thecourse of the purpose of his trade must have enteredinto a contract with the contractor and also the workwhich is the subject-matter of the contract shouldordinarily form the whole or part of the business.

In Rabia Md. Vs Agent, GIP Rly. [AIR 1929 Bom 179:(1929) ILR 53 Bom 203] the Bombay High Court heldthat the case did not fall within sub-section (1)

In Payyannur Educational Society Vs Narayani, [(1996) 3Supp LLJ 1212] the Kerala High Court rejected theappellants contention.


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Sub-Section (2) of Section XII

It provides that the principal employer will beentitled to be indemnified by the contractor incase the former is required to pay compensationto the contractors employees.

In Triveedhi Peerayya Vs Executive Engineer,Dam Division, N.S. Dam, Vijayapuri North

[(1988) 2 LLN 483 AP] the court observed thatthe negligence was on the part of the principalemployer and so, was not entitled to beindemnified by the contractor.


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Sub-Section (4) of section XII

The provisions shall not apply in any case

elsewhere than on, in, or about the

premises.

In Bhuvaneswari Rice Mill, Guntur Vs

Mannava Pullayya [AIR 1964 AP 392], the

court observed that the accident occurred

at a place where the work in question wasbeing executed.

workmen s compensation act 1923 196(2)

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