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Section 4 – Workmen’s Compensation Act, 1923

Workmen’s Compensation Act, 1923

 

 

4. Amount of compensation.—

 

1Amount of compensation.

 

(1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:—

 

(a)   Where death results from the injury .

 

an amount equal to 2[fifty per cent.] of the monthly wages of the deceased workman multiplied by the relevant factor;

or

an amount of 3[4[eighty thousand rupees]],whichever is more;

 

(b)   Where permanent total disablement results from the injury   

 

an amount equal to 5[sixty per cent.] of the monthly wages of the injured workman multiplied by the relevant factor;

                                                           or

an amount of 6[7[ninety thousand rupees]], whichever is more;

 

Explanation I.—For the purposes of clause (a) and clause (b) “relevant factor” in relation to a workman means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the workman on his last birthday immediately preceding the date on which the compensation fell due.

 

Explanation II.—Where the monthly wages of a workman exceed 8[four thousand rupees], his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be 8[four thousand rupees] only;

 

(c)   Where permanent partial disablement  result from the injury   

 

(i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in thecase of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and

 

(ii) in the case of an injury not specified in Schedule I, such percentage of the compen- sation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;

Explanation I.—Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.

 

Explanation II.—In assessing the loss of earning capacity for the purpose of sub-clause (ii), the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;

 

(d)   Where temporary disablement whether  total or partial results from the injury               

 

a half monthly payment of the sum equivalent to twenty-five per cent of mostly wages of the workman, to be paid in accordance with the rovisions of sub-section (2).

 

9[(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to a workman is respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such workman in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the workman in accordance with the law of that country.]

 

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day —

 

(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or more, or

 

(ii) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the disablement or during a period of five years, whichever period is shorter:

Provided that—

 

(a) there shall be deducted from any lump sum or half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and

 

(b) no half-monthly payment shall in any case exceed the amount, if any by which half the amount of the monthly wages of the workman before the accident exceeds half the amount of such wages which he is earning after the accident.

 

Explanation.—Any payment or allowance which the workman has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso.

 

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.]

 

9[(4) If the injury of the workman results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of 10[two thousand and five hundred rupees] for payment of the same to the eldest surviving dependant of the workman towards the expenditure of the funeral of such workman or where the workman did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure.]

 

COMMENTS

 

Assessment of loss of earning capacity by the qualified medical practitioner

 

The incorporation of words “assessment of loss of earning capacity by the qualified medical practitioner” in section 4 (1) (c) (ii) have some purpose and it is not a case of ambiguity at all. So long as there is no provision which enables the Commissioner to determine the compensation ignoring the medical practitioner’s report, there is no question of avoiding it by Commissioner unless he wants a second report from the Medical Board; New India Assurance Co. Ltd. v. Sreedharan, 1995 LLR 376 (Ker).

Interference by High Court

 

The interference by High Court with the order of recall by Commissioner for Workmen’s Compensation on the ground of fraud by workman is unjustified both on fact and the law; Roshan Deen v. Preeti Lal, AIR 2002 SC 33.

 

—————————–

1. Subs. by Act 22 of 1984, sec. 3, for section 4 (w.e.f. 1-7-1984).

 

2. Subs. by Act 30 of 1995, sec. 4, for “forty per cent.” (w.e.f. 15-9-1995).

 

3. Subs. by Act 30 of 1995, sec. 4, for “twenty thousand rupees” (w.e.f. 15-9-1995).

 

4. Subs. by Act 46 of 2000, sec. 3, for “fifty thousand rupees” (w.e.f. 8-12-2000).

 

5. Subs. by Act 30 1995, sec. 4, for “fifty per cent.” (w.e.f. 15-9-1995).

 

6. Subs. by Act 30 of 1995, sec. 4, for ”twenty-four thousand rupees” (w.e.f. 15-9-1995).

 

7. Subs. by Act 46 of 2000, sec. 3, for “sixty thousand rupees” (w.e.f. 8-12-2000).

 

8. Subs. by Act 30 of 1995. sec. 4, for “one thousand rupees” (w.e.f. 15-9-1995) and again subs. by Act 46 of 2000, sec. 3, for “two thousand rupees” (w.e.f. 8-12-2000).

 

9. Ins. by Act 30 of 1995, sec. 4 (w.e.f. 15-9-1995).

 

10. Subs. by Act 46 of 2000, sec. 3, for “one thousand rupees” (w.e.f. 8-12-2000).

 

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Workmen’s Compensation Act, 1923

 

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