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Sarkaritel.com News and Features
Workmen's Compensation
Act, 1923: Provisions and Applicability
New Delhi, 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.
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