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Workmen Compensation Act 1923 

The Workmen Compensation Act 1923

Worker’s compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. In exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system known as “the compensation bargain“. One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that, and thus to ensure security of compensation to the workers. Individual immunity is the necessary corollary to collective liability.

The Workmen Compensation Act 1923 

It is the first measure of social security introduced in 1923 came into force from 1st July 1924. The workmen compensation is an act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident. The first measure of social security introduced in 1923 came into force from 1st July 1924. The workmen compensation is an act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident.

Importance of the Workmen Compensation Act 1923 :

  1. It has been of great help to the employee and the employer both. There were many confusions in all cases of accidents before the introduction of this Act. Its proceedings were long drawn time consuming and sheer wastage of time and natural resources.
  2. The workmen compensation Act has abolished all the problems and difficulties. The employee declared to be entitled to the benefit of the law regardless of negligence. Under this Act 1923, the issue is as to whether the injury was accidental and arose out of. In the course of his employment and if the answer is yes, he would be entitled to get compensation, other wise not.
  3. The workmen compensation Act perform a great service to both the parties i.e. employee and the employer. It provides a very simple procedure for the recovery of compensation.
  4. It makes the possible to know. How much is to be paid, as schedules for different types of casualties are provided in the Act. The workmen or his dependent are at liberty to either life a suit for damage against the employer and run the risk of employer’s escape from liability.
  5. So, it intended to promote the welfare of public community and it does not concern itself with the measure of preventive nature.

Employer’s Liability In case of injury:

Sec 3 of the workmen compensation Act 1923 provides that if personal injury caused to a workmen by accident arising out of and in the course of his employment. His employer shall be liable to pay compensation.

In case of physical disease:

Besides, bodily injury, the section provides for employers liability to pay compensation to an employee of his if the employee contracts. Any of the occupational diseases mentioned in the schedule III.

Amount of Compensation:

The amount of compensation will be determine by two factors i.e.

(1) the amount of wages.

(2) the nature of injury.

According to section 4 of the Act 1923, the amount of compensation shall be as follows:

1. Where death result from the Injury:

Where death result from the injury to a workmen in receipt of monthly wages failing within the limits of Rs.3000 as shown in the first column of schedule IV. The amount of compensation will be Rs.2,00,000. Revised Previously.

2. Where permanent total disablement results from the Injury:

Where permanent total disablements result from injury to a workman in receipt of monthly wages falling within the limits of Rs.3000. As shown in the first column of schedule Iv, the amount of compensation will be Rs.2,00,000.

3. Where permanent partial disablement results from the Injury:

a. Specified in schedule :

In case of an injury specified in schedule. I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified there in as being the percentage of he loss of earning capacity caused by that injury

b. Not Specified in schedule .

In the case of an injury not specified in schedule. I such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity permanently caused by the injury.

4. Temporary Total or Partial Disablement:

Where temporary total or partial disablement results from the injury, ½ of the monthly wages will be payable during the period of disablement or a period of one year. Starts from the date of injury, whichever is less and thereafter only in case bf chronic lung disease 1/3 of the monthly wages will be payable during the period of disablement or for a period of five years, starts from the date of injury, whichever is less.

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