The
Workmen's Compensation Act, 1923 is one of the important social security legislations.
It aims at providing financial protection to workmen and
their dependents 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.
The
important terms in the Workmen
Compensation Act 1923 are as below:
a)
Dependents Dependent means
·
a widow, a minor son,
unmarried daughter or a widowed mother, and
·
if wholly or in part
dependent on the earnings of the worker at the time of his or her death’
i)
a widower, a minor brother
and unmarried sister
ii)
a widowed daughter–in– law
and
iii)
a minor child of
predeceased daughter, etc.
b) Minor: A person below 18 years of age.
c) Partial Disablement: means
disablement of temporary nature and which reduces the earning capacity of a
workman.
d) Total Disablement: implies such disablement
which (temporarily or permanently) incapacitates a workman for all work and he
cannot earn at all (for a period or for ever).
e) Workman: means a person (other than one whose
employment is of casual nature and who is employed otherwise than for the
purpose of the employer’s trade or business)
Applicability
of the Act
The Act
extends to the whole of India except the States/Union Territories.
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.
