Page 71 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 3.7 Summary

 The language in Section 3 shows that injury is caused by accident and not ‘by an accident’.
 The willful disregard of the usage of the safety device or safety guard provided for the
purpose of securing safety of the workman by the employer.
 Schedule III is divided into three parts, viz., A, B and C. No specific period of employment
is necessary for a claim for compensation with respect to occupational diseases mentioned
in Part A.
 Section 10 of the Act prescribes that a claim for compensation shall be entertained by the
commissioner only after a notice of the accident has been given to him.
 Every notice shall be served upon the employer. It may be served by delivering it at or
sending it by registered post and addressed to the residence or any of office or place of
business of the person on whom it is to be served.
 The power to make rules conferred by section 32 shall be subject to the condition of the
rules being made after previous publication.
 Prior to the passing of this Act, the employer was liable to pay compensation only if he
was guilty of negligence.

 An injured workman may, if he wishes, file a civil suit for damages against the employer.
 In a civil suit for damages, it is open to the employer to plead all the defenses provided by
the law of Torts.

 Section 8 of the Act provides for the deposit of the compensation before the Commissioner,
as also to the distribution of compensation by the Commissioner.

3.8 Keywords

Compensation: Compensation of employees (CE) is a statistical term used in national accounts,
balance of payments statistics and sometimes in corporate accounts as well.
Defenses: The Action of defending from or resisting attack.
Employer: A legal entity that controls and directs a servant or worker under an express or
implied contract of employment and pays (or is obligated to pay) him or her salary or wages in
compensation.
Employment: Employment is a contract between two parties, one being the employer and the
other being the employee.

Enforcement: Application of a law or regulation, or carrying out of an executive or judicial
order.
Liability: A company's legal debts or obligations that arise during the course of business
operations.
Occupational Disease: An occupational disease is any chronic ailment that occurs as a result of
work or occupational Activity.

Personal Injury: Personal injury is a legal term for an injury to the body, mind or emotions, as
opposed to an injury to property.
Workmen Compensation: Workers' compensation is a form of insurance providing wage
replacement and medical benefits to employees injured in the course of employment in exchange

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