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Objectives

The Workmens Compensation Act is the first piece of legislation towards social security. It
deals with compensation for workers who are injured in the course of duty.
The general principle is that a worker who suffers an injury in the course of his employment,
which results in a disablement, should be entitled to compensation and in the case of a fatal
injury his dependants should be compensated.

At the time the framing of the bill two criteria were followed in
determining whom the Act would apply to:
1. those industries which were more or less organized
2. Workmen whose occupations were hazardous.
To which establishments does the Act
apply?
All establishments hiring 20 workers and above must compulsorily register themselves under
the Employees State Insurance Act (ESI Act). It is only those establishments, which employ a
lesser number of workers, and therefore to do not come within the purview of the ESI Act that
the Workmens Compensation Act applies to. Also if employers fail to register themselves under
the ESI Act, then they will be responsible to pay compensation under the Workmens
Compensation Act.

However, the Workmens compensation Act will only apply to those
persons considered workers and those Employers considered
Employers, as defined under the Act.
Compensation and disablement

When is an employer liable to pay compensation?
As per Section 3 of the Act, the employer is liable to pay compensation if the worker is injured
by accident that:

! arises out of (i.e. while engaged in work), and;
! in the course of his employment (i.e. during work
hours),and;
! such an injury results in disablement of the worker.
If three conditions are met, the employer of an establishment
covered by the Act, is bound to pay compensation. While the second
condition, i.e. during work hours is easy to prove, the first condition
(i.e., the accident occurred while engaged in work) has been difficult
to establish in certain cases.
Definition of Disablement
The definition of disablement is very important in this Act, as it determines the extent of
compensation that can be claimed by the worker injured in the course of his employment. Under
the Act, there are four types of eventualities, which can be compensated,
namely:

1. Death
2. Permanent Total Disablement: disablement that
incapacitates a worker from all kinds of work.
3. Permanent partial disablement: disablement that reduces
the capacity to work in any employment similar to that the
worker was performing at the time of the accident.
Temporary disablement: This may be total or partial disablement, which is of temporary
nature, which reduces the earning capacity of the worker in any similar employment
for the period of disablement.

Note: Total disability (i.e. 100% disability) has a different meaning
under the Workmens Compensation Act as compared to its
meaning in normal language. According to the Act, disability is
determined with reference to the work that the worker was doing
immediately before accident took place and if the resulting injury
leaves him incapable of performing any work of a similar nature
then his disability is considered as 100%.
Example: An accident left a worker- a coolie with a defect in his
leg and as a result unfit to perform the work of a coolie.5 Legally he
can be considered 100% disabled. In this case the court stated that
the incapacity to earn is to be determined with reference to the
work, the worker was doing at the time of accident.
Compensation is not payable by the employer
in the following circumstances:
! Where the disablement does not last for more than three
days.
! Where the disablement has arisen out of the following:
(a) Drugs or drink;
(b) Disobedience;
(c) Disregard for the safety measures prescribed.
How is the amount of compensation decided?
The compensation to be paid by the employer for injuries caused depend on extent of the
disablement suffered by the worker; more severe disablements naturally receive higher
compensation.
This has been categorised as follows:
Compensation payable in case of:
1) Death;
2) Disablement
(a) Permanent total disablement;
(b) Permanent partial Disablement
(c) Temporary disablement-
(i) Temporary total disablement;
(ii) Temporary partial disablement.
In addition, the guiding principle is, the higher the age of the injured
worker, the lower the compensation.




How much Compensation in case of
injury resulting in temporary
disablement? (Section 4(2) to 4(4))
In case of temporary disablement, payments equal to 25% of the workers wages shall be made
at half monthly intervals. Clause (d) of sub section 4(1) talks about compensation for temporary
disablement In case the disablement lasts for more than 28 days then the employer should
make the payment on the 16th day from the day of the disablement. If the period of disablement
lasts for less than 28 days then the payment shall be made after the expiry of 3 days. This wait
for 3 days is to ascertain how long the temporary disablement will last; whether it is likely to get
over before 28 days or take longer.

In case the employer makes any payment to the worker before the payment of this half monthly
or lump sum amount it shall be deducted from this. (section 4 (2) (a))

This provision envisages a situation where an application is made when the worker is still
undergoing treatment and recovering. While this is possible, in Bangalore workers applications
for temporary disablement compensation are normally made only after they recover from the
injury and find themselves out of a job. Then they make an application to recover the
compensation. In such cases, the Commissioner, grants a lump sum adding up half-monthly
payments for the period starting from the day of the accident up till the date shown on the last
medical record (i.e. doctors. prescription, case sheet, outpatient coupon, etc) that the worker is
able to produce. In addition, the Commissioner also grants 12% interest. Therefore, in the event
of suffering an injury-related disablement, workers should maintain these medical records.
Because it is on the basis of this proof, that they get compensation.

Review of payments in case of temporary disablement
(section 6)
In the case of temporary disablement where half-monthly wages is to be paid, there is provision
for review of such amount, by the commissioner. Either party, supported by an attested
certificate of a medical examiner can apply for the review to the commissioner. The review
might lead to the increase, decrease or the end of the half-monthly wages, depending on the
condition of the worker. In case the temporary disablement leads to a permanent disablement,
then the review has the power to call for the lump sum compensation to be paid to the worker.
The lump sum the worker is entitled to is less any amount that s/he has already received in half
monthly payments. In case of temporary disablement, any worker, receiving the half monthly
payment, shall be required to submit himself from time to time for a medical examination.
According to Rule 17 of the Karnataka Workmens Compensation Rules, 1966, the worker
needs only to submit herself/himself for medical examination only twice in the month following
the accident and only once in subsequent months, if the place is away from the workers place
of residence.

List of injuries deemed to result in permanent total disablement
S. No. Description of Injury Percentage
of loss of
earning
capacity
1 Loss of both hands or amputation at higher sites 100
2 Loss of hand and a foot 100
3 Double amputation through leg or thigh, or amputation
through leg or thigh on one side and loss of other foot 100
4 Loss of sight to such an extent as to render the claimant
unable to perform any work for which eyesight is
essential 100
5 Very severe facial disfigurement 100
6 Absolute deafness 100
Part II
List of injuries deemed to result in permanent partial disablement
1 Amputation throug shoulder joint 90
2 Amputation below shoulder with stump less
than [20.32 cms] from tip of acromion 80
3 Amputation from [20.32 cms] from tip of acromion
to less than [11.43 cms] below tip of olecranon 70
4 Loss of hand or of the thumb and four fingers of one
hand or amputation from [11.43 cms] below tip of
olecranon 60
5 Loss of thumb 30
6 Loss of thumb and its metacarpal bone 40
7 Loss of four fingers of one hand 50
8 Loss of three fingers of one hand 30
9 Loss of two fingers of one hand 20
10 Loss of terminal phalanx of thumb 20
10 A Guillotine amputation of tip of thumb without loss
of bone 10
Amputation caseslower limbs
11 Amputation of both feet resulting in end-bearing stumps 90
12 Amputation through both feet proximal to the metatarsophalangeal
joint 80
13 Loss of all toes of both feet through metatarso-phalengeal
joint 40
14 Loss of all toes of both feet proximal to the proximal interphalangeal
joint 30
15 Loss of all toes of both feet distal to the proximal interphalangeal
joint 20
16 Amputation at hip 90

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