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Unit 2: Definitions under Workmen’s Compensation Act, 1923

6. The condition of an injured workman may be aggravated by refusal to submit to medical Notes
examination or refusal to follow the instructions of the medical examiner or failure to be
attended by or follow the instructions of a qualified medical practitioner.
7. In such a case he would get compensation, not for the aggravated injury, but for what the
injury would have been had he been properly treated.

Employment by Contractors [Sec. 12]

When an employer engages contractors who engage workmen, any workman injured may
recover compensation from the employer if the following conditions are satisfied:

(a) the contractor is engaged to do a work, which is part of the trade or business of the
principal;

(b) the engagement is in the course of or for the purposes of his trade or business; and
(c) the accident occurred in or about the vicinity of the employer’s premises.
The workman may also proceed against the contractor. So he has alternative remedies. When
the employer pays compensation, he is entitled to be indemnified by the contractor.

Remedies of Employer against Stranger [Sec. 13]

Where a workman has recovered compensation in respect of any injury caused under
circumstances creating a legal liability of some person over than the person by whom the
compensation was paid and any person who has been called on to pay an indemnity under
Section 12 shall be indemnified by the Person so liable to pay damages as aforesaid.

Insolvency of Employer [Sec. 14]

The liability to pay workmen’s compensation can be insured against. If an employer who has
entered into a contract of insurance for this purpose, becomes insolvent or enters into a scheme
of composition or arrangement or (being a company) is wound up, the rights or the employer as
against the insurer shall be transferred to and vest in the workman. The liability to pay
compensation to a workman is to be treated as a preferred debt under insolvency and winding
up. For this purpose, the liability to pay half-monthly payments is to be taken as equivalent to
the lump sum payment into which it can be commuted. This section does not apply where a
company is wound up voluntarily merely for the purpose of reconstruction or amalgamation
with another company.

Transfer of Assets by Employer [Sec. 14A]

Where an employer transfers his assets before any amount due in respect of any compensation,
the liability wherefore accrued before the date of the transfer, has been paid, such amount shall,
notwithstanding anything contained in any other law for the time being in force, be a first
charge on that part of the assets so transferred as consists of immovable property.

Master and Seamen

So far as masters and seamen are concerned, the provisions of the Act apply with certain
modifications laid down in Section 15.

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