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Workman compensation act

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Workman compensation act

  1. 1. Workman Compensation Act<br />Objectives : <br />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. <br />
  2. 2. Scope and Coverage <br />The Act extends to the whole of India . <br />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. <br />For the first time, casual laborers will be provided compensation for death or disability. <br /> Establishments which are covered by the Employees State Insurance Act, are outside the preview of this Act. The coverage of this act is also to cooks employed in hotels and restaurants. <br />
  3. 3. Employees Entitled<br />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. <br />A person employed in a factory which is yet to commence production would not be deprived of the benefit of the provisions of the Act. <br />The workman employed in a premises where manufacturing process is intended to be carried on is not necessarily required to be actually connected with manufacturing process.<br /> Any person engaged in such premises who is contributing for the intended manufacturing process would be deemed to be workman for the purpose of the Act. <br />
  4. 4. Administrative Authority : <br />The State Governments administer the provisions of this Act through the Commissioners appointed for specified areas.<br /> The State Governments also make rules for ensuring that the provisions of the Act are complied with.<br />
  5. 5. Definition<br />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 the age of 18 years and who is infirm, And any of the following wholly or partly dependent on the workman at the time of his death— a widower, a parent other than a widowed mother, a minor illegitimate son, a unmarried illegitimate daughter, a widowed daughter in law, a minor child of the dead son & daughter & a paternal grandparent if not the parent of the workman is alive. <br />
  6. 6. Disablement<br />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".<br /> Disablements can be classified as (a) Total, and {b) Partial. It can further be classified into (i) Permanent, and {ii) Temporary<br />
  7. 7. Accident Compensation-when payable :<br />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 disablement who has contracted an occupational disease accident arising out of and in the course of implies a casual connection between the injury and the accident and the work done in the course of employment.<br />
  8. 8. What are the condition for receiving compensation for Personal Injury caused by the accident ?<br />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; <br />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 the service, or inherent in the nature or condition of employment.<br />
  9. 9. When is an Employer not liable to pay compensation ?<br />if the injury did not result in total or partial disablement of a workman for a period exceeding three days, <br />if the workman was at the time of the accident under the influence of drink of drug, or <br />if the workman willfully disobeyed an order expressly given or a rule expressly framed for the purpose of securing safety of workman, or <br />If the workman willfully removed or disregarded any safety guard or other device which to his knowledge was provided for the purpose of securing his safety. <br />
  10. 10. AMOUNT OF COMPENSATION<br />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. <br />There is no distinction between an adult and a minor worker with respect to the amount of compensation.<br />
  11. 11. COMPENSATION FOR DEATH : <br />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.<br />COMPENSATION FOR PERMANENT TOTAL DISABLEMENT In case of permanent total disablement resulting from the injury, the amount of compensation shall be 60% of the monthly wages of the injured workman multiplied by the relevant factor or Rs 90,000/- thousand whichever is more. <br />
  12. 12. COMPENSATION FOR PERMANENT PARTIAL DISABLEMENT<br />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 compensation is payable which is proportionate to the loss of earning capacity (as assessed by a qualified medical practitioner) permanently caused by the injury. <br />
  13. 13. COMPENSATION FOR TEMPORARY DISABLEMENT (TOTAL OR PARTIAL) : <br />If the temporary disablement, 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 disablement In cases where such disablement lasts for a period of 28 days or more compensation is payable from the date of disablement In other cases After the expiry of a waiting period of three days from the date of disablement.<br />
  14. 14. COMPENSATION TO BE PAID WHEN DUE AND PENALTY FOR DEFAULT (section 4A) : <br />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 commissioner may order: the payment of the amount with interest at12 % per year if the default to be unjustifiable then the commissioner may order payment of a further sum not exceeding 50% of the amount due, by way of penalty.<br />
  15. 15. Accident Report : <br />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 <br />
  16. 16. COVERAGE UNDER THE ESI ACT, 1948 <br />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.<br />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 newspaper establishment employing 20 or more persons.<br />Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .<br />The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.<br />The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).<br />
  17. 17. Continue……<br />AREAS COVEREDThe ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories STATESAll the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.UNION TERRITORIES Delhi, Chandigarh and Pondicherry<br />COVERAGE :<br />Coverage(As on 31st  March, 2010)<br />  No. of Insured Person family units 14300000  <br /> No. of Employees 13896150   <br />Total No. of Beneficiaries 55484000  <br /> No. of Insured women 2600250   <br />No. of Employers, etc 406499<br />