Page 43 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 7. The general rule is that there must be the relationship of ........................... between the
employer and the workman.
8. ........................... of a workman may result in loss or reduction of his earning capacity.

9. ........................... means any disablement as reduces the earning capacity of a workman as a
result of some accident.

2.3 Major Provisions of this Act

The main provisions of the Act are:
1. An employer is liable to pay compensation: - (i) if personal injury is caused to a workman
by accident arising out of and in the course of his employment; (ii) if a workman employed
in any employment contracts any disease, specified in the Act as an occupational disease
peculiar to that employment.
2. However, the employer is not liable to pay compensation in the following cases:-

a If the injury does not result in the total or partial disablement of the workman for a
period exceeding three days.
b If the injury, not resulting in death or permanent total disablement, is caused by an
accident which is directly attributable to:- (i) the workman having been at the time
of the accident under the influence of drink or drugs; or (ii) the willful disobedience
of the workman to an order expressly given, or to a rule expressly framed, for the
purpose of securing the safety of workmen; or (iii) the willful removal or disregard
by the workman of any safety guard or other device which has been provided for
the purpose of securing safety of workmen.
3. The State Government may, by notification in the Official Gazette, appoint any person to
be a Commissioner for Workmen’s Compensation for such area as may be specified in the
notification. Any Commissioner may, for the purpose of deciding any matter referred to
him for decision under this Act, choose one or more persons possessing special knowledge
of any matter relevant to the matter under inquiry to assist him in holding the inquiry.
4. Compensation shall be paid as soon as it falls due. 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 which he accepts, and, such payment
shall be deposited with the Commissioner or made to the workman, as the case may be.

5. If any question arises in any proceedings under this Act as to the liability of any person to
pay compensation (including any question as to whether a person injured is or is not a
workman) or as to the amount or duration of compensation (including any question as to
the nature or extent of disablement), the question shall, in default of agreement, be settled
by a Commissioner.

!
Caution No Civil Court shall have jurisdiction to settle, decide or deal with any question
which is by or under this Act required to be settled, decided or dealt with by a Commissioner
or to enforce any liability incurred under this Act.

6. The State Government may, by notification in the Official Gazette, direct that every person
employing workmen, or that any specified class of such persons, shall send at such time
and in such form and to such authority, as may be specified in the notification, a correct
return specifying the number of injuries in respect of which compensation has been paid

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