The workmen compensation Act 1923 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.
Importance of Workmen Compensation ACT 1923
It has been of great help to the employee and the employer both. There was much confusion 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.
The workmen compensation Act has abolished all the problems and difficulties. It declares the employee to get entitled to take benefit from the law without negligence. Under this Act 1923, the issue is as to whether the injury was accidental and arose out of and in the course of his employment and if the answer is yes, he would be entitled to get compensation, otherwise not.
The workmen compensation Act perform a great service to both the parties i.e. the employee and the employer. It provides a very simple procedure for the recovery of compensation.
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 live a suit for damage against the employer and run the risk of the employer’s escape from liability.
So it is intended to promote the welfare of the public community and it does not concern itself with the measure of preventive nature.
Employer’s Liability under Workmen Compensation ACT 1923
In case of injury
Sec 3 of the workmen compensation Act 1923 provides that if personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation.
In the 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 determined by two factors i.e. (1) the number of wages (2) the nature of the injury.
According to section 4 of the Act 1923, the amount of compensation shall be as follows.
Where Death Result from the Injury:
Where death results from the injury to 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.
Where Permanent Total Disablement results from the Injury
Where permanent total disablement 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.
Where Permanent Partial Disablement results from the Injury
Specified in Schedule
In case of an injury specified in the schedule, I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and.
Not Specified in schedule I:
If any sort of injury isn’t specified in Schedule I, Permanently Earning capacity loss due to that specific loss is proportionate to payable compensation.
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 of 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.