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Unit 3: Rules regarding the Workmen’s Compensation Act
3.4.2 Compensation for Permanent Total Disablement Notes
Where permanent total disablement results form an injury, the amount of compensation payable
shall be equal to 60 percent of the monthly wages of the injured workman multiplied by the
relevant factor, or 90,000, whichever is more. The formula for calculating the amount of
compensation in case of permanent total disablement resulting from an injury will be as follows:
60 Monthly wages Relevant factor
or 90,000 whichever is more.
100
3.4.3 Compensation for Permanent Partial Disablement
In the case of an injury 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 the injury; and in other
words, the percentage of compensation payable is proportionate to the loss of earning capacity
permanently caused by the scheduled injury. Thus, if the loss of earning capacity caused by an
injury specified in Part II of Schedule I is 30 percent, the amount of compensation shall be 30
percent of compensation payable in case of permanent total disablement. In the case of an injury
not specified in Schedule I such percentage of the compensation 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.
3.4.4 Compensation for Temporary Disablement
A half monthly payment of the sum whether total or partial results equivalent to 25% of monthly
wages of the from the injury workman to be paid in the manner prescribed.
3.4.5 Compensation to be Paid when due and Penalty for Default
Section 4A provides for the payment of compensation and the penalty for default. It provides
that compensation shall be paid as soon as it falls due. Section 4 mandates employer to pay
compensation amount as soon as it falls due to victim or his or her legal heirs.
However, 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, without prejudice to the right of workman to make any further claim.
Self Assessment
Fill in the blanks:
10. Section ........................... of the Act prescribes the amount of compensation payable under
the provisions of the Act.
11. There is no distinction between an adult and a minor worker with respect to the amount
of ...........................
12. A half monthly payment of the sum whether total or partial results equivalent to
........................................ of monthly wages of the from the injury workman to be paid in the
manner prescribed.
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