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Unit 2: Definitions under Workmen’s Compensation Act, 1923
In the proportion in which his earning capacity has been decreased permanently he is entitled to Notes
compensation.
The medical evidence showing loss of physical capacity is a relevant factor but it is certainly not
the decisive factor as to the loss of earning capacity. It is the loss of earning capacity that has to
be determined. Commrs for Port of Cal. v. A. K. Ghosh.
The type of disablement suffered is to be determined from the facts of the case. But it is provided
that every injury specified in Schedule I to the Act shall be deemed to result in permanent partial
disablement. The schedule also mentions the percentage loss of earning capacity which is to be
presumed in each such case.
Example:
(From Schedule 1) Percentage loss
Description of Injury of earning capacity
Loss of both hands 100
Severe facial disfigurement 100
Absolute deafness 100
Loss of thumb 30
Loss of one eye 40
Middle finger of left hand (whole) 14
(There are 54 items listed in the Schedule with percentage loss of earning capacity for
each item mentioned.)
2. Total Disablement [Section 2 (1) (l)]
It means such disablement, whether of a temporary or permanent nature, as incapacitates a
workman for all work which he was capable of performing at the time of the accident resulting
in such disablement. It refers to that condition where a workman becomes unfit for every type
of work and is not able to get job anywhere due to that disablement.
Total disablement is deemed to result from every injury specified in Part I of Schedule I or from
any combination of injuries specified in Part II thereof where the aggregate percentage of the
loss of earning capacity, as specified in Part II against those injuries, amounts to 100 per cent or
more. Where an employee becomes unfit for a particular class of job but is fit for another class
which is offered to him by the employer, the workman is entitled to claim compensation only
on the basis of partial disablement and not total disablement.
Task Find out the compensation to be paid when due and penalty for default.
Self Assessment
Fill in the blanks:
5. .................................... means a Commissioner for Workmen’s Compensation appointed
under Section 20.
6. From 1st April 1976, the limit of monthly wages for purposes of this Act was raised from
500 to ....................................
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