Page 45 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 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 half-monthly during the period of disablement or during a period of 5 years, whichever
is shorter. There is also a provision for commutation of half-monthly payments to a lump sum
amount by agreement between the parties or by an application by either party to the
Commissioner for Workmen’s Compensation if the payments continue for not less than six
months (Section 4 and 7).
If the workman contracts any occupational disease peculiar to that employment, that would be
deemed to be an injury by accident arising out of and in the course of his employment for
purposes of this Act.

Did u know? In the case of occupational diseases, the compensation will be payable only if
the workman has been in the service of the employer for more than six months.
Some of the occupational diseases listed in Schedule III to the Act are anthrax, poisoning by lead,
phosphorous or mercury, telegraphist’s cramp, silicosis, asbestosis, and bagassosis (Section 3).

Authority

It is provided that all cases of fatal accidents should be brought to the notice of the Commissioner
for Workmen’s Compensation; and if the employer admits the liability, the amount of
compensation payable should be deposited with him. Where the employer disclaims his liability
for compensation to the extent claimed, he has to make provisional payment based on the extent
of liability which he accepts; and such payment must be deposited with the Commissioner or
paid to the workman. In such cases, the Commissioner may, after such enquiry as he thinks fit,
inform the depend-ants that it is open to them to prefer a claim and may give such other
information as he thinks fit. Advances by the employers against compensation are permitted
only to the extent of an amount equal to 3 months’ wages. He is also empowered to deduct an
amount not exceeding 50 from the amount of compensation iii order to indemnify the person
who incurred funeral expenses. The employer is required to file annual, returns giving details of
the compensation in order to indemnify tie person who incurred funeral expenses. The employer
is required to file annual returns giving details of the compensation paid, the number of injuries
and other particulars.
The amount deposited with the Commissioner for Workmen’s Compensation is payable to the
dependents of the workman. The amount of compensation is to be apportioned among the
dependents of the deceased workman or any of them in such proportion as the Commissioner
thinks fit (Sections 2 and 8). If an employer is in default, in paying the compensation within one
month from the date it fell due, the Commissioner may direct the recovery of not only the
amount of the arrears but also a simple interest at the rate of six per cent per annum on the
amount due. If, in the opinion of the Commissioner, there is no justification for the delay, an
additional sum, not exceeding 50 per cent of such amount, may be recovered from the employer
by way of penalty (Section 4-A).

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