10 Facts you should know about Employee / Workmen Compensation Act in India

Q 1 : Whether contractual employee is eligible for claim under Employee Compensation Act?

Employee Compensation Act do not distinguish between types of employees- contractual, permanent, casual, daily wages and even employee working abroad- all types of employees comes under purview of this Act.

In case of contractual employee both contractor and principal employer are liable to pay compensation to employee in case of mishap defined in the act.

Q 2 : Can an employee or his dependent take claim under both ESI and Employee Compensation Act?

No, employee or his dependent can take claim under only one Act either ESI or Employee Compensation Act.

Q 3 : Can company take insurance policy to insure its liability under Employee Compensation Act?

Yes, there are insurance policies available to cover such liabilities and called WC-Workmen Compensation Policy. In case of any claim insurance company need to pay the same to claimant.

Also commissioner can direct insurance company to pay claim as per act even if claimant has claimed lesser amount.

Q 4 : Compensation calculation considering wage which is less than minimum wages of the state. Possible?

In one of the case, Karnataka High court has mentioned that in case workman wage is less than minimum wage of the state then minimum wage should be considered for calculation of Compensation.

Q 5: What type of events should be considered as Accident under the act?

As mentioned in my earlier post- What is Employee Compensation Act (Earlier known as Workmen Compensation Act), that Supreme court in one of its verdict mentioned that there must be a casual connection between the injury and the accident AND the accident and the work done in the course of employment for entitlement of compensation under the act.

Below are considered as accident and compensation is applicable:

• Employee fall in well while going to attend a call of the nature while on duty and died
• Driver killed by co driver while taking company truck from one place to another
• Employee got chest pain and died while on duty
• Employee got died or permanent total disability while operating some one else machine.
• Accident of driver while vehicle was not moving

Below are some examples which can not be considered as Accident under the act:

• Employee suicide in the premises.
• Employee found dead far from company premises during working hours.
• Killing of an employee by her husband at work place.

Q 6: Is there any time limit to claim Compensation?

As per act claim should be made within 2 years from the date of accident but Commissioner can entertain if he is satisfied with reason of delay.

Q 7: What is the time limit of compensation payment by employer?

It should be within one month else 12% interest on amount should be paid by employer apart from 50% penalty.

Q 8 : From which date compensation should be calculated?

Compensation should be calculated from the date of accident incurred.

Q 9 : Who has the onus to prove an accident?

Employee

Q 10 : Educational institute fall under Employee /  Workmen Compensation Act?

Yes

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