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Unit 7: Definitions under Workmen’s Compensation Act, 1923

Self Assessment Notes

State whether the following statements are true or false:
10. The employer is not liable to pay compensation if the injury does not result in the total or
partial disablement of the workman for a period exceeding three days.
11. An employer is liable to pay compensation if the injury, not resulting in death or permanent
total disablement.
12. In cases where the employer does not accept the liability for compensation to the extent
claimed, he shall be bound to make provisional payment based on the extent of liability.

7.4 Distribution of Compensation

The compensation shall be paid by the employer to a workman for any personal injury sustained
by him in an accident arising out of and in the course of his employment. In Schedule I to the
Act, the percentage loss of earning capacity or disablement caused by different types of injuries
has been listed. However, the employer will not be liable to pay compensation for any kind of
disablement (except death) which does not continue for more than three days, if the injury is
caused when the workman was under the influence of drink or drugs or wilfully disobeyed a
clear order or violated a rule expressly framed for the purpose of securing his safety or wilfully
removed or disregarded a safety device. A workman is also not entitled to compensation if he does
not present himself for medical examination when required, or if he fails to take proper medical
treatment which aggravates the injury or disease. In case it is not fatal, an employment injury
may’ cause any injury resulting in permanent total disablement, permanent partial disablement,
or temporary disablement (Section 3).
The rate of compensation in case of death is an amount equal to 50 per cent of the monthly wages
of the deceased workman multiplied by the relevant factor or an amount of ` 50,000, whichever
is higher. Where permanent total disablement results from the injury, the compensation will be
an amount equal to 60 per cent of the monthly wages of the injured workman multiplied by the
relevant factor or an amount of ` 60,000 whichever is higher.

Notes Where the monthly wages of a workman exceed two thousand rupees, his
monthly wages for the above purposes will be deemed to be two thousand rupees only.

Where permanent partial disablement results from the injury, if specified in Part II of 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. The percentage loss of earning capacity depends on the loss of limbs and
varies from 1 per cent to 90 per cent. In the case of an injury not specified in Schedule I, such
percentage of the compensation is 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. Where more injuries than one are caused by the same accident,
the amount of compensation payable under this head shall be aggregated but shall not in any
case exceed the amount which would have been payable if permanent total disablement had
resulted from the injuries.
In case of temporary disablement, a half-monthly payment of the sum equivalent to 25 per cent
of monthly wages of the workman has to be paid. Half-monthly payment as compensation will
be payable on the 16th day from the date of disablement. In cases where the disablement is for 28
days or more, compensation is payable from the date of disablement. In other cases, it is payable
after the expiry of a waiting period of 3 days. Thereafter, the compensation will be payable

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