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MAN REPORT
WORKMAN COMPENSATION ACT
 BRIEF INTRODUCTION: -
The Workmen's Compensation Act (Act VIII of 1923) came into force
from 1st July, 1924. It applies to the whole of India, including the
State of Jammu and Kashmir. The Act provides for the payment of
compensation by certain. classes of employers to their workmen, for
injury by accidents. The Workmen's Compensation Act does not
apply to factories covered by the Employees State Insurance Act.The
Amendment of 1976. The Workmen's Compensation (Amendment)
Act, 1976, was passed with the object of providing suitable scales of
compensation for the higher wage levels beyond Rs. 500. The reason
is that all wages have been increased. Before the amendment, the
Act covered workmen whose wages did not exceed Rs. 500 per
month.Prior to the passing of this Act, the employer was liable to pay
compensation only if he was guilty of negligence. Even in case of
proved negligence, the employer could get rid of his liability by using
any of the following defences. The Doctrine of Assumed Risks. If the
employee knew the nature of tte risks he was undertaking when
working in a factory, the employer had no liability for injuries. The
court assumed in such case that the workman had voluntarily
accepted the risks incidental to his work. The doctrine followed from
the rule V olenti Non Fit Injuria, which means that one, who has
volunteered to take a risk of injury, is not entitled to damages if
injury actually occurs.The Doctrine of Common Employment. Under
this rule, when several Persons work together for a common purpose
and one of them is injured by some act or omission of another, the
employer is not liable to pay compensation for the injury.The
Doctrine of Contributory Negligence: Under this rule' a person is not
entitled to damages for injury if he was himself guilty of negligence
and such negligence contributed to the injury.The three aforesaid
defences and the rule "no negligence no liability made It almost
impossible for an employee to obtain relief in cases of accident. The
Workmen's Compensation Act of 1923 radically changed the law.
According to this Act, the employer is liable to pay compensation
irrespective of negligence. The Act looks upon compensation as relief
to the workman and not as damages payable by the employer for a
wrongful act or tort. Hence contributory negligence by the employee
does not disentitle him from relief. For the same reason, it is not
possible for the employer to plead to the defence of common
employment or assumed risks for the purpose of avoiding liability.An
injured workman may, if he wishes, file a civil suit for damages
against the employer. Section 3(5) of the Workmen's Compensation
Act, however, provides that if such a suit is filed, compensation
cannot be claimed under the Act and if compensation has been
claimed under the Act, or if an agreement has been entered into
between the employer and the workman for the payment
of .compensation, no suit can be filed in the civil court. Thus the
workman has to choose between two reliefs civil suit for damages
and (ii) claim for compensation under the Act.
 PROPOSED METHODOLOGY: -
If you're looking to propose a methodology related to the implementation or
analysis of the Workmen's Compensation Act, 1923, you might want to
consider the following steps:
Understanding the Act:Begin by thoroughly studying the provisions of the
Workmen's Compensation Act, 1923. Understand the eligibility criteria, types
of compensations, and the obligations of employers under the Act.
Stakeholder Identification:Identify and categorize the stakeholders involved,
including employers, employees, insurance providers, and regulatory
authorities. Understanding their perspectives is crucial for effective
implementation.
Legal Compliance Check:Conduct a comprehensive review of existing practices
within organizations to ensure compliance with the Act. Identify any gaps or
areas that need improvement.
Awareness Programs:Develop and implement awareness programs to educate

both employers and employees about their rights and responsibilities under
the Workmen's Compensation Act. This could include training sessions,
informational materials, and communication campaigns.
Documentation and Record-Keeping:Establish a robust system for
documentation and record-keeping to ensure that all relevant information
related to workplace incidents, injuries, and compensation claims is accurately
recorded and maintained.
Risk Assessment:Conduct a risk assessment of workplaces to identify potential
hazards and areas where the risk of accidents or occupational diseases is high.
Implement measures to mitigate these risks.
Insurance Coverage:Ensure that employers have appropriate insurance

coverage as mandated by the Act. Review insurance policies to guarantee they
align with the requirements and adequately cover potential compensation
claims.
Dispute Resolution Mechanism:Develop a transparent and efficient dispute
resolution mechanism to address any disagreements or disputes that may arise
during the compensation process. This could involve setting up an internal
committee or adhering to external mediation services.
Periodic Audits:Conduct periodic audits to assess the effectiveness of the
implemented measures. This includes reviewing compensation records,
assessing workplace safety, and evaluating the overall compliance with the Act.
Continuous Improvement:Establish a culture of continuous improvement by

regularly reviewing and updating the methodology based on changing legal
requirements, industry best practices, and feedback from stakeholders.
Training and Capacity Building:Provide ongoing training and capacity-building
programs for relevant personnel, including HR professionals, safety officers,
and managers, to ensure they are well-equipped to handle issues related to
the Workmen's Compensation Act.
 Workmen's Compensation Act 1923 - Amount of compensation

According to Section 4 of the Workmen's Compensation Act 1923, the amount
of compensation workers are liable to receive is as follows:
1)Temporary disabilities:
For temporary disabilities, the Workmen's Compensation Act 1923 provides
financial compensation of up to 25% of the concerned employee’s monthly
wages.
2)Permanent total disabilities:
In an unfortunate event when an employee suffers from permanent
disablement, that individual has the right to receive 60% of his/her monthly
wage or Rs.1,20,000, whichever is higher.
3)Permanent partial disabilities:
Injuries that fall under permanent partial disabilities are stated in Part II
Schedule I of the Act. The payable corpus is a certain percentage of earnings
loss by the employee due to his/her injury.
4)Death :
When an employee dies due to an accident at his/her workplace, their family is
liable to receive 50% of the deceased’s monthly wages or Rs.1,20,000,
whichever is higher.
Note – Individuals who are liable to receive compensation under the
Employees' State Insurance Scheme of India (ESIC) cannot get financial benefits
from the above mentioned Act.
 Amount of compensation
Where death results from the injury-

In case the employee dies, an amount equal to fifty percent of the monthly
wages multiplied by a factor as per given in the Schedule 4 of the act or rupees
eighty thousand is given whichever is more.
Where permanent total disablement results from the injury-
In case the employee has total disablement the amount given is sixty percent
or rupees ninety thousand whichever is more.
Where permanent partial disablement results from injury-
In the case of permanent partial disablement, the compensation provided is
equal to disability as sixty percent or rupees ninety thousand.
Liability of Insurer
The liability of the insurer is determined on the basis of the wages of the
employee. The amount of wages is covered under the insurance policy. The
company will be liable to indemnify only that portion of the amount which is
under wages.
Causal connection between disease and occupation
The amount of compensation is paid when the insurer certifies that the injury
is the result of an occupational disease.
Application of law of pleadings
An application for pleadings can be filed by the employee under the amount of
compensation when he/she thinks that the amount that is decided is not
appropriate with respect to the injury incurred.
 WHY DO WE NEED WORKMAN COMPENSATION ACT 1923

The Workmen's Compensation Act, 1923, serves several important purposes,
addressing the needs and concerns of both workers and employers. Here are
some key reasons why this legislation is crucial:
a) Protection for Workers: The primary purpose of the Act is to provide
financial protection to workers in case of injuries, disabilities, or fatalities
arising out of and in the course of employment. It ensures that workers or
their dependents receive compensation without having to establish fault or
negligence on the part of the employer.
b) Swift Compensation: The Act operates on a no-fault basis, facilitating a
quick and efficient process for injured workers to receive compensation.
This is essential in providing timely financial support to cover medical
expenses and support the worker and their family during the period of
incapacity.
c) Legal Framework: The Act establishes a legal framework that outlines the
rights and responsibilities of both employers and workers in the context of
workplace injuries. This clarity helps in resolving disputes and ensures that
there is a fair and standardized process for compensation claims.
d) Encourages Occupational Safety: Knowing that they are liable to
compensate workers for injuries, employers are incentivized to maintain a
safe working environment. This encourages the implementation of safety
measures and practices to prevent accidents and injuries in the workplace.
e) Social Welfare: The Act contributes to social welfare by addressing the
financial needs of workers who are injured or disabled on the job. It helps
prevent destitution and provides a safety net for the dependents of
workers in case of fatal accidents.
f) Economic Stability for Workers: By providing compensation for medical
expenses, rehabilitation, and loss of earning capacity, the Act helps injured
workers maintain a certain level of economic stability during their
recovery. This, in turn, contributes to the overall well-being of workers and
their families.
g) Reduces Litigation: The no-fault system established by the Act reduces the
need for workers to engage in lengthy and costly legal battles to prove
employer negligence. This not only speeds up the compensation process
but also helps in minimizing legal disputes.
h) Employer Accountability: The Act holds employers accountable for the
well-being of their workers by making them financially responsible for
workplace injuries. This accountability fosters a sense of responsibility
among employers to ensure safe working conditions.
❖ NAME OF TEAM MEMBERS
[Name of students] [Roll No.]
Adarsh Vishwakarma 21759
Virendra patil 21758
Vignesh peta 21757
Aljo vadakethala 21756
Abhishek Waigankar 21761

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MAN REPORT

WORKMAN COMPENSATION ACT

Awareness Programs:Develop and implement awareness programs to educate

Insurance Coverage:Ensure that employers have appropriate insurance

Continuous Improvement:Establish a culture of continuous improvement by

 Workmen's Compensation Act 1923 - Amount of compensation

Where death results from the injury-

 WHY DO WE NEED WORKMAN COMPENSATION ACT 1923

[Name of students] [Roll No.]

Adarsh Vishwakarma 21759

Virendra patil 21758

Vignesh peta 21757

Aljo vadakethala 21756

Abhishek Waigankar 21761

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