3. Employer’s liability for compensation.—(1) If personal injury is caused to a 2
[employee] by
accident arising out of and in the course of his employment, his employer shall be liable to pay
compensation in accordance with the provisions of this Chapter:
Provided that the employer shall not be so liable—
(a) in respect of any injury which does not result in the total or partial disablement of the
2
[employee] for a period exceeding 3
[three] days;
(b) in respect of any 4
[injury, not resulting in death5
[or permanent total disablement], caused by]
an accident which is directly attributable to—
(i) the2
[employee] having been at the time thereof under the influence of drink or drugs, or
(ii) thewilful disobedience of the 2
[employee] to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of employee’s, or
(iii) thewilful removal or disregard by the 2
[employee] of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of 6
[employees] 7***
8* * * * *
9
[(2) If a[employee] employed in any employment specified in Pat A of Schedule III contracts any
disease specified therein as an occupational disease peculiar to that employment, or if a2
[employee],
whilst in the service of an employer in whose service he has been employed for a continuous period of not
less than six months (which period shall not include a period of service under any other employer in the
same kind of employment) in any employment specified in Part B of Schedule III, contracts any disease
specified therein as an occupational disease peculiar to that employment, or if a2
[employee] whilst in the
service of one or more employers in any employment specified in Part C of Schedule III for such
continuous period as the Central Government may specify in respect of each such employment, contracts
any disease specified therein as an occupational disease peculiar to that employment, the contracting of
the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the
1. Subs. by Act 30 of 1995, s.2, for sub-section (3) (w.e.f. 15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 8 of 1959, s. 3, for “seven” (w.e.f.1-6-1959).
4. Subs. by Act 15 of 1933, s. 3, for “injury to a workman resulting from”.
5. Ins. by Act 30 of 1995, s. 3 (w.e.f. 15-9-1995).
6. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010).
7. The word “or” omitted by Act 5 of 1929, s. 2.
8. Clause (c)omitted by s. 2, ibid.
9. Subs. by Act 8 of 1959, s. 3, for sub-sections (2)and (3) (w.e.f. 1-6-1959).
7
contrary is proved, the accident shall be deemed to have arisen out of, and in the course of, the
employment:
1
[Provided that if it is proved,—
(a) that a 2
[employee] whilst in the service of one or more employers in any employment
specified in Part C of Schedule III has contracted a disease specified therein as an occupational
disease peculiar to that employment during a continuous period which is less than the period specified
under this sub-section for that employment, and
(b) that the disease has arisen out of and in the course of the employment;
the contracting of such disease shall be deemed to be an injury by accident within the meaning of this
section:
Provided further that if it is proved that a2
[employee] who having served under any employer in any
employment specified in Part B of Schedule III or who having served under one or more employers in any
employment specified in Part C of that Schedule, for a continuous period specified under this sub-section
for that employment and he has after the cessation of such service contracted any disease specified in the
said Part B or the said Part C, as the case may be, as an occupational disease peculiar to the employment
and that such disease arose out of the employment, the contracting of the disease shall be deemed to be an
injury by accident within the meaning of this section.]
3
[(2A) If a2
[employee] employed in any employment specified in Part C of Schedule III contracts any
occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by
accident within the meaning of this section, and such employment was under more than one employer, all
such employers shall be liable for the payment of the compensation in such proportion as the
Commissioner may, in the circumstances, deem just.]
(3) 4
[The Central Government or the State Government] after giving, by notification in the Official
Gazette, not less than three months’ notice of its intention so to do, may, by a like notification, add any
description of employment to the employments specified in Schedule III, and shall specify in the case of
employments so added the diseases which shall be deemed for the purposes of this section to be
occupational diseases peculiar to those employments respectively, and thereupon the provisions of subsection (2) shall apply 5
[in the case of a notification by the Central Government, within the territories to
which this Act extends or, in case of a notification by the State Government, within the State] 6*** as if
such diseases had been declared by this Act to be occupational diseases peculiar to those employments.]
(4)Save as provided by 7
[sub-sections (2), (2A)] and (3) no compensation shall be payable to
a
2
[employee] in respect of any disease unless the disease is 8*** directly attributable to a specific injury
by accident arising out of and in the course of his employment.
(5) Nothing herein contained shall be deemed to confer any right to compensation on a2
[employee] in
respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against
the employer or any other person; and no suit for damages shall be maintainable by a2
[employee] in any
Court of law in respect of any injury—
(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or
1. Ins. by Act 64 of 1962, s. 3 (w.e.f. 1-2-1963).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 64 of 1962, s. 3, for sub-section (2A) (w.e.f. 1-2-1963).
4. Subs. by Act 30 of 1995, s. 3, for certain words (w.e.f. 15-9-1995).
5. Ins. by s. 3, ibid. (w.e.f. 15-9-1995).
6. Certain words omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
7. Subs. by Act 8 of 1959, s. 3, for “sub-section (2)” (w.e.f. 1-6-1959).
8. The words “solely and” omitted by Act 15 of 1933, s. 3.
8
(b) if an agreement has been come to between the 1
[employee] and his employer providing for the
payment of compensation in respect of the injury in accordance with the provisions of this Act.
2
[4. Amount of compensation.—(1) Subject to the provisions of this Act, the amount of
compensation shall be as follows, namely:—
(a) where death results from the injury an amount equal to 3
[fifty per cent.] of the
monthly wages of the deceased 1
[employee]
multiplied by the relevant factor;
or
an amount of 4
[one lakh and twenty thousand
rupees], whichever is more;
(b) where permanent total disablement
results from the injury
an amount equal to 5
[sixty per cent.] of the
monthly wages of the injured 1
[employee]
multiplied by the relevant factor;
or
an amount of 6
[one lakh and forty thousand
rupees],whichever is more:
7
[Provided that the Central Government may, by notification in the Official Gazette, from time to
time, enhance the amount of compensation mentioned in clauses (a) and (b);]
Explanation I.—For the purposes of clause (a) and clause (b), “relevant factor”, in relation to
a
1
[employee] means the factor specified in the second column of Schedule IV against the entry in the
first column of that Schedule specifying the number of years which are the same as the completed
years of the age of the 1
[employee] on his last birthday immediately preceding the date on which the
compensation fell due.
8
* * * **
(c) where permanent partial disablement
results from the injury.
(i) 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 that injury, and
(ii) 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.
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010)
2. Subs. by Act 22 of 1984, s. 3, for s. 4 (w.e.f. 1-7-1984).
3. Subs. by Act 30 of 1995, s. 4, for “forty per cent.” (w.e.f. 15-9-1995).
4. Subs. by Act 45 of 2009, s. 7, for “eighty thousand rupees” (w.e.f. 18-1-2010). Earlier it was amended by Act 46 of 2000, s. 3
(w.e.f. 8-12-2000).
5. Subs. by Act 45 of 1995, s.4,for “fifty per cent.” (w.e.f. 15-9-1995).
6. Subs. by Act 45 of 2009, s. 7, for “ninety thousand rupees” (w.e.f. 18-1-2010). Earlier it was amended by Act 46 of 2000, s. 3
(w.e.f. 8-12-2000).
7. Ins. by s. 7, ibid. (w.e.f. 18-1-2010).
8. Explanation II omitted by s. 7, ibid. (w.e.f.18-1-2010).
9
Explanation I.—Where more injuries than one are caused by the same accident, the amount of
compensation payable under this head shall be aggregated but not so in any case as to exceed the
amount which would have been payable if permanent total disablement had resulted from the injuries.
Explanation II.—In assessing the loss of earning capacity for the purposes of sub-clause (ii), the
qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in
relation to different injuries specified in Schedule I;
(d) where temporary disablement, whether total
or partial results from the injury
a half-monthly payment of the sum equivalent
to twenty-five per cent. of monthly wages of
the 1
[employee], to be paid in accordance with
the provisions of sub-section (2).
2
[(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of
compensation payable to a1
[employee] in respect of an accident occurred outside India, the Commissioner
shall take into account the amount of compensation, if any, awarded to such 1
[employee] in accordance
with the law of the country in which the accident occurred and shall reduce the amount fixed by him by
the amount of compensation awarded to the 1
[employee] in accordance with the law of that country.]
3
[(1B) The Central Government may, by notification in the Official Gazette, specify, for the purposes
of sub-section (I), such monthly wages in relation to an employee as it may consider necessary;]
(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the
sixteenth day—
(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or
more, or
(ii) after the expiry of a waiting period of three days from the date of disablement where such
disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the
disablement or during a period of five years, whichever period is shorter:
Provided that—
(a) there shall deducted from any lump sum or half-monthly payments to which the 1
[employee]
is entitled the amount of any payment or allowance which the 1
[employee] has received from the
employer by way of compensation during the period of disablement prior to the receipt of such lump
sum or of the first half-monthly payment, as the case may be; and
(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the
amount of the monthly wages of the 1
[employee] before the accident execeds half the amount of such
wages which he is earning after the accident.
Explanation.—Any payment or allowance which the 1
[employee] has received from the employer
towards his medical treatment shall not be deemed to be a payment or allowance received by him by way
of compensation within the meaning of clause (a) of the proviso.
3
[(2A) The employee shall be reimbursed the actual medical expenditure incurred by him for
treatment of injuries caused during the course of employment.]
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f . 18-1-2010).
2. Ins. by Act 30 of 1995, s. 4 (w.e.f. 15-9-1995).
3. Ins. by Act 45 of 2009, s. 7 (w.e.f. 18-1-2010).
10
(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due
there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement
in that half-month.]
1
[(4) If the injury of the 2
[employee] results his death, the employer shall, in addition to the
compensation under sub-section (1), deposit with the Commissioner a sum of 3
[two thousand and five
hundred rupees] for payment of the same to the eldest surviving dependant of the 2
[employee] towards the
expenditure of the funeral of such 2
[employee] or where the2
[employee] did not have a dependant or was
not living with his dependant at the time of his death to the person who actually incurred such
expenditure.]
4
[Provided that the Central Government may, by notification in the Official Gazette, from time to
time, enhance the amount specified in this sub-section.]
5
[4A. Compensation to be paid when due and penalty for default.—(1) Compensation under
section 4 shall be paid as soon as it falls due.
(2) 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 2
[employee], as the case may be,
without prejudice to the right of the 2
[employee] to make any further claim.
6
[(3) Where any employer is in default in paying the compensation due under this Act within one
month from the date it fell due, the Commissioner shall—
(a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest
thereon at the rate of twelve per cent. per annum or at such higher, rate not exceeding the maximum
of the lending rates of any scheduled bank as may be specified by the Central Government by
notification in the Official Gazette, on the amount due; and
(b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in
addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per
cent. of such amount by way of penalty:
Provided that an order for the payment of penalty shall not be passed under clause (b) without giving
a reasonable opportunity to the employer to show cause why it should not be passed.
Explanation.—For the purposes of this sub-section, “scheduled bank” means a bank for the time
being included in the Second Schedule to the Reserve Bank of India Act, 1934.
7
[(3A) The interest and the penalty payable under sub-section (3) shall be paid to the 2
[employee] or
his dependant, as the case may be.]
5.8
[Method of calculating wages.—8***9
[In this Act and for the purposes thereof the expression
“monthly wages” means me amount of wages deemed to be payable for a month’s service (whether the
1. Ins. by Act 30 of 1995, s. 4 (w.e.f.15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
3. Subs. by Act 46 of 2000, s. 3, for “one thousand rupees” (w.e.f.8-12-2000).
4. Ins. by Act 45 of 2009, s. 7 (w. e. f. 18-1-2010).
5. Ins. by Act 8 of 1959, s. 5 (w.e.f.1-6-1959).
6. Subs. by Act 30 of 1995, s. 5 for sub-section (3) (w.e.f.15-9-1995),
7. Subs. by Act 46 of 2000, s. 4, for sub-section (3A) (w.e.f.8-12-2000).
8.The brackets and figure “(1)” omitted by Act 9 of 1938, s. 4. Earlier section 5 was re-numbered as sub-section (1) of that
section by Act 5 of 1929, s. 3.
9. Subs. by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934), for “For the purposes of this Act the monthly wages of a workman shall be
calculated”. The words in italics subs. by Act 15 of 1933, s. 5, for “section 4”.
11
wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows,
namely:—
(a) where the 1
[employee] has, during a continuous period of not less than twelve months
immediately preceding the accident, been in the service of the employer who is liable to- pay
compensation, the monthly wages of the 1
[employee] shall be one-twelfth of the total wages which
have fallen due for payment to him by the employer in the last twelve months of that period;
2
[(b) where the whole of the continuous period of service immediately preceding the accident
during which the 1
[employee] was in the service of the employer who is liable to pay the
compensation was less than one month, the monthly wages of the 1
[employee] shall be 3*** the
average monthly amount which, during the twelve months immediately preceding the accident, was
being earned by a1
[employee] employed on the same work by the same employer, or, if there was no
1
[employee] so employed, by a1
[employee] employed on similar work in the same locality;]
4
[(c)] 5
[in other cases [including cases in which it is not possible for want of necessary
information to calculate the monthly wages under clause (b)]], the monthly wages shall be thirty
times the total wages earned in respect of the last continuous period of service immediately preceding
the accident from the employer who is liable to pay compensation, divided by the number of days
comprising such period.
6* * * * *
Explanation.—A period of service shall, for the purposes of 7
[this 8
[section]] be deemed to be
continuous which has not been interrupted by a period of absence from work exceeding fourteen
days.
9* * * * *
6. Review.—(1) Any half-monthly payment payable under this Act, either under an agreement
between the parties or under the order of a Commissioner, may be reviewed by the Commissioner, on the
application either of the employer or of the 1
[employee] accompanied by the certificate of a qualified
medical practitioner that there has been a change in the condition of the 1
[employee] or, subject to rules
made under this Act, on application made without such certificate.
(2) Any half-monthly payment may, on review under this section, subject to the provisions of this
Act, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent
disablement, be converted to the lump sum to which the 1
[employee] is entitled less any amount which he
has already received by way of half-monthly payments.
7. Commutation of half-monthly payments.—Any right to receive half-monthly payments may, by
agreement between the parties or, if the parties cannot agree and the payments have been continued for
not less than six months, on the application of either party to the Commissioner be redeemed by the
payment of a lump sum of such amount as may be agreed to by the parties or determined by the
Commissioner, as the case may be.
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
2. Ins. by Act 15 of 1933, s. 5.
3. The words “deemed to be” omitted by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934).
4. Clause (b) relettered as clause (c) by Act 15 of 1933, s. 5.
5. Subs. by Act 8 of 1959, s. 6, for “in other cases” (w.e.f. 1-6-1959).
6. The proviso omitted by Act 15 of 1933, s. 5.
7. Subs. by Act 5 of 1929, s. 3, for “this section”.
8. Subs. by Act 9 of 1938, s. 4, for “sub-section”.
9. Sub-section (2) omitted by Act 15 of 1933, s. 5. Earlier it was added by Act 5 of 1929, s. 3.
12
8. Distribution of compensation.—1
[(1) No payment of compensation in respect of a 2
[employee]
whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a
person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no
such payment made directly by an employer shall be deemed to be a payment of compensation:
3
[Provided that, in the case of a deceased 2
[employee], an employer may make to any dependant
advances on account of compensation 4
[of an amount equal to three months’ wages of such 2
[employee]
and so much of such amount] as does not exceed the compensation payable to that dependant shall be
deducted by the Commissioner from such compensation and repaid to the employer.]
(2) Any other sum amounting to not less than ten rupees which is payable as compensation may be
deposited with the Commissioner on behalf of the person entitled thereto.
(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation
deposited with him.]
(4) On the deposit of any money under sub-section (1) 5
[as compensation in respect of a deceased
2
[employee] the Commissioner 6*** shall, if he thinks necessary, cause notice to be published or to be;
served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before
him on such date as he may fix for determining the distribution of the compensation. If the Commissioner
is satisfied after any inquiry which he may deem necessary, that no dependant exists, he shall repay the
balance of the money to the employer by whom it was paid. The Commissioner shall, on application by
the employer, furnish a statement showing in detail all disbursements made.
7
[(5) Compensation deposited in respect of a deceased 2
[employee] shall, subject to any deduction
made under sub-section (4), be apportioned among the dependants of the deceased 2
[employee] or any of
them in such proportion as the Commissioner thinks fit, or may, in the discretion of the Commissioner, be
allotted to any one dependant.
(6) Where any compensation deposited with the Commissioner is payable to any person, the
Commissioner shall, if the person to whom the compensation is payable is not a woman or a person under
a legal disability, and may, in other cases, pay the money to the person entitled thereto.
(7) Where any lump sum deposited with the Commissioner is payable to a woman or a person under a
legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman,
or of such person during his disability, in such manner as the Commissioner may direct; and where a
half-monthly payment is payable to any person under a legal disability, the Commissioner may, of his
own motion or on an application made to him in this behalf, order that the payment be made during the
disability to any dependant of the employee or to any other person, whom the Commissioner thinks best
fitted to provide for the welfare of the 2
[employee].]
8
[(8)] Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied
that, on account of neglect of children on the part of parent or on account of the variation of the
circumstances of any dependant or for any other sufficient cause, an order of the Commissioner as to the
distribution of any sum paid as compensation or as to the manner in which any sum payable to any such
dependant is to be invested, applied or otherwise dealt with, ought to be varied, the Commissioner may
make such orders for the variation of the former order as he thinks just in the circumstances of the case:
1. Subs. by Act 5 of 1929, s. 4, for sub-sections (1) to (3).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
3. Subs. by Act 15 of 1933, s. 6, for the proviso.
4. Ins. by Act 5 of 1929, s. 4.
5. Subs. by Act 30 of 1995, s. 6, for certain words (w.e.f.15-9-1995).
6. Certain words omitted by Act 30 of 1995, s. 6 (w.e.f.15-9-1995).
7. Subs. by Act 5 of 1929, s. 4, for sub-section (5).
8. Sub-section (6) renumbered as sub-section (8) by Act 5 of 1929, s. 4.
13
Provided that no such order prejudicial to any person shall be made unless such person has been given
an opportunity of showing cause why the order should not be made, or shall be made in any case in which
it would involve the repayment by a dependant of any sum already paid to him.
1
[(9) Where the Commissioner varies any order under sub-section (8) by reason of the fact that
payment of compensation to any person has been obtained by fraud, impersonation or other improper
means, any amount so paid to or on behalf of such person may be recovered in the manner hereinafter
provided in section 31].
9. Compensation not to be assigned, attached or charged.—Save as provided by this Act, no lump
sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or
charged or be liable to attachment or pass to any person other than the 2
[employee] by operation of law,
nor shall any- claim be set off against the same.
10. Notice and claim.—(1) 3
[No claim for compensation shall be entertained by a Commissioner
unless notice of the accident has been given in the manner hereinafter provided as soon as practicable
after the happening thereof and unless the claim is preferred before him within 4
[two years] of the
occurrence of the accident or, in case of death, within 4
[two years] from the date of death:]
Provided that, where the accident is the contracting of a disease in respect of which the provisions of
sub-section (2) of section 3 are applicable, the accident shall be deemed to have occurred on the first of
the days during which the 2
[employee] was continuously absent from work in consequence of the
disablement caused by the disease:
5
[Provided further that in case of partial disablement due to the contracting of any such disease and
which does not force the 2
[employee] to absent himself from work, the period of two years shall be
counted from the day the2
[employee]gives notice of the disablement to his employer:
Provided further that if a 2
[employee] who, having been employed in an employment for a continuous
period, specified under sub-section (2) of section 3 in respect of that employment, ceasesto be so
employed and develops symptoms of an occupational disease peculiar to that employment within two
years of the cessation of employment, the accident shall be deemed to have occurred on the day on which
the symptoms were first detected:]
6
[Provided further that the want of or any defect or irregularity in a notice shall not be a bar to the
7
[entertainment of a claim]—
(a) if the claim is 8
[preferred] in respect of the death of a2
[employee] resulting from an accident
which occurred on the premises of the employer, or at any place where the 2
[employee] at the time of
the accident was working under the control of- the employer or of any person employed by him, and
the 2
[employee] died on such premises or at such place, or on any premises belonging to the
employer, or died without having left the vicinity of the premises or place where the accident
occurred, or
(b) if the employer 9
[or any one of several employers or any person responsible to the employer
for the management of any branch of the trade or business in which the injured 2
[employee] was
1. Ins. by Act 5 of 1929, s. 4.
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 9 of 1938, s. 5, for the original words.
4. Subs. by Act 8 of 1959, s. 8, for “one year” (w.e.f. 1-6-1959).
5. Ins. by Act 64 of 1962, s. 5 (w.e.f. 1-2-1963).
6. Ins. by Act 15 of 1933, s. 7.
7. Subs. by Act 9 of 1938, s. 5, for “maintenance of proceedings”.
8. Subs. by s. 5, ibid.
9. Ins. by s. 5, ibid.
14
employed] had knowledge of the accident from any other source at or about the time when it
occurred:
Provided further, that the Commissioner may 1
[entertain] and decide any claim to compensation in
any case notwithstanding that the notice has not been given, or the claim has not been 2
[preferred], in due
time as provided in this sub-section, if he is satisfied that the failure so to give the notice of 3
[prefer] the
claim, as the case may be, was due to sufficient cause.
(2) Every such notice shall give the name and address of the persons injured and shall state in
ordinary language the cause for the injury and the date on which the accident happened, and shall be
served on the employer or upon 4
[any one of] several employers, or upon any person 5*** responsible to
the employer for the management of any branch of the trade or business in which the injured 6
[employee]
was employed.
7
[(3) The State Government may require that any prescribed class of employers shall maintain at their
premises at which 8
[employees] are employed a notice-book, in the prescribed form, which shall be
readily accessible at all reasonable times to any injured6
[employee] employed on the premises and to any
person acting bona fide on his behalf.
(4) A notice under this section may be served by delivering it at, or sending it by registered post
addressed to, the residence or any office or place of business of the person on whom it is to be served, or,
where a notice-book is maintained, by entry in the notice-book.]
9
[10A. Power to require from employers statements regarding fatal accidents.—(1) Where a
Commissioner receives information from any source that a6
[employee] has died as a result of an accident
arising out of and in the course of his employment, he may send by registered post a notice to the
workman’s employer requiring him to submit, within thirty days of the service of the notice, a statement,
in the prescribed form, giving the circumstances attending the death of the 6
[employee], and indicating
whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the
death.
(2) If the employer is of opinion that he is liable to deposit compensation, he shall make the deposit
within thirty days of the service of the notice.
(3) If the employer is of opinion that he is not liable to deposit compensation, he shall in his statement
indicate the grounds on which he disclaims liability.
(4) Where the employer has so disclaimed liability, the Commissioner, after such enquiry as he may
think fit, may inform any of the dependants of the deceased 6
[employee], that it is open to the dependants
to prefer a claim for compensation, and may give them such other further information as he may think fit.
1. Subs. by Act 9 of 1938, s. 5, for “admit”.
2. Subs. by s. 5, ibid., for “instituted”.
3. Subs. by s. 5, ibid., for “institute”.
4. Subs. by Act 7 of 1924, s. 2 and the First Schedule, for “any one or”.
5. The word “directly” omitted by Act 9 of 1938, s. 5.
6. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
7. Subs. by Act 15 of 1933, s. 7, for sub-section (3).
8. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010).
9. Ins. by Act 15 of 1933, s. 8.
15
10B. Reports of fatal accidents and serious bodily injuries.—(1) Where, by any law for the time
being in force, notice is required to be given to any authority, by or on behalf of an employer, of any
accident occurring on his premises which results in death 1
[or serious bodily injury], the person required
to give the notice shall, within seven days of the death 1
[or serious bodily injury], send a report to the
Commissioner giving the circumstances attending the death 1
[or serious. bodily injury]:
Provided that where the State Government has so prescribed the person required to give the notice
may instead of sending such report to the Commissioner send it to the authority to whom he is required to
give the notice.
1
[Explanation.—“Serious bodily injury” means an injury which involves, or in all probability will
involve the permanent loss of the use of, or permanent injury to, any limb, or the permanent loss of or
injury to the sight or hearing, or the fracture of any limb, or the enforced absence of the injured person
from work for a period exceeding twenty days.]
(2) The State Government may, by notification in the Official Gazette, extend the provisions of
sub-section (1) to any class of premises other than those coming within the scope of that sub-section, and
may, by such notification, specify the persons who shall send the report to the Commissioner:
1
[(3) Nothing in this section shall apply to factories to which the Employees’ State Insurance Act,
1948 (34 of 1948), applies.]
11. Medical examination.—(1) Where a 2
[employee] has given notice of an accident, he shall, if the
employer, before the expiry of three days from the time at which service of the notice has been effected,
offers to have him examined free of charge by a qualified medical practitioner, submit himself for such
examination, and any 2
[employee] who is in receipt of a half monthly payment under this Act shall, if so
required, submit himself for such examination from time to time:
Provided that a2
[employee] shall not be required to submit himself for examination by a medical
practitioner otherwise than in accordance with rules made under this Act, or at more frequent intervals
than may be prescribed.
(2) If a2
[employee], on being required to do so by the employer under sub-section (1) or by the
Commissioner at any time, refuses to submit himself for examination by a qualified medical practitioner
or in any way obstructs the same, his right to compensation shall be suspended during the continuance of
such refusal or obstruction unless, in the’ case of refusal, he was prevented by any sufficient cause from
so submitting himself.
(3) If a2
[employee], before the expiry of period within which he is liable under sub-section (1) to be
required to submit himself for medical examination, voluntarily leaves without having been so examined
the vicinity of the place in which he was employed, his right to compensation shall be suspended until he
returns and offers himself for such examination.
(4) Where a2
[employee], whose right to compensation has been suspended under sub-section (2) or
sub-section (3), dies without having submitted himself for medical examination as required by either of
those sub-sections, the Commissioner may, if he thinks fit, direct the payment of compensation to the
dependants of the deceased 2
[employee].
(5) Where under sub-section (2) or sub-section (3) a right to compensation is suspended, no
compensation shall be payable in respect of the period of suspension, and, if the period of suspension
commences before the expiry of the waiting period referred to in clause (d) of sub-section (1) of section 4,
the waiting period shall be increased by the period during which the suspension continues.
1. Ins. by Act 8 of 1959, s. 9 (w.e.f.1-6-1959).
2. Subs. by Act 45 of 2009, s. 5, for “Workman” (w.e.f.18-1-2010).
16
(6) Where an injured 1
[employee] has refused to be attended by a qualified medical practitioner
whose services have been offered to him by the employer free of charge or having accepted such offer has
deliberately disregarded the instructions of such medical practitioner, then,2
[if it is proved that the
1
[employee] has not thereafter been regularly attended by a qualified medical practitioner or having been
so attended has deliberately failed to follow his instructions and that such refusal, disregard or failure was
unreasonable] in the circumstances of the case and that the injury has been aggravated thereby, the injury
and resulting disablement shall be deemed to be of the same nature and duration as they might reasonably
have been expected to be if the 1
[employee] had been regularly attended by a qualified medical
practitioner 3
[whose instructions he had followed]., and compensation, it any, shall be payable
accordingly.
12. Contracting.—(1) Where any person (hereinafter in this section referred to as the principal) in
the course of or for the purposes of his trade or business contracts with any other person (hereinafter in
this section referred to as the contractor) for the execution by or under the contractor of the whole or any
part of any work which is ordinarily part of the trade or business of the principal, the principal shall be
liable to pay to any 1
[employee] employed in the execution of the work any compensation which he
would have been liable to pay if that 1
[employee] had been immediately employed by him; and where
compensation is claimed from the principal, this Act shall apply as if references to the principal were
substituted for references to the employer except that the amount of compensation shall be calculated with
reference to the wages of the 1
[employee] under the employer by whom he is immediately employed.
(2) Where the principal is liable to pay compensation under this section, he shall be entitled to be
indemnified by the contractor 4
[,or any other person, from whom the 1
[employee] could have recovered
compensation and where a contractor who is himself a principal is liable to pay compensation or to
indemnify a principal under this section he shall be entitled to be indemnified by any person standing to
him in the relation of a contractor from whom the 1
[employee] could have recovered compensation] and
all questions as to the right to and the amount of any such indemnity shall, in default of agreement, be
settled by the Commissioner.
(3) Nothing in this section shall be construed as preventing a1
[employee] from recovering
compensation from the contractor instead of the principal.
(4) This section shall not apply in any case where the accident occurred elsewhere than on, in or about
the premises on which the principal has undertaken or usually undertakes, as the case may be, to execute
the work or which are otherwise under his control or management.
13. Remedies of employer against stranger.—Where a1
[employee] has recovered compensation in
respect of any injury caused under circumstances creating a legal liability of some person other than the
person by whom the compensation was paid to pay damages in respect thereof, 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 entitled to be indemnified by the person so liable to pay damages as aforesaid.
14. Insolvency of employer.—(1) Where any employer has entered into a contract with any insurers
in respect of any liability under this Act to any 1
[employee], then in the event of the employer becoming
insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a
company, in the event of the company having commenced to be wound up, the rights of the employer
against the insurers as respects that liability shall, notwithstanding anything in any law for the time being
in force relating to insolvency or the winding up of companies, be transferred to and vest in the
1
[employee], and upon any such transfer the insurers shall have the same rights and remedies and be
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
2. Subs. by Act 9 of 1938, s. 6, for certain words.
3. Ins. by s. 6, ibid.
4. Ins. by Act 15 of 1933, s. 9.
17
subject to the same liabilities as if they were the employer, so, however, that the insurers-shall not be
under any greater liability to the 1
[employee] than they would have been under to the employer.
(2) If the liability of the insurers to the 1
[employee] is less than the liability of the employer to the
1
[employee], the 1
[employee] may prove for the balance in the insolvency proceedings or liquidation.
(3) Where in any case such as is referred to in sub-section (1) the contract of the employer with the
insurers is void or voidable by reason of non-compliance on the part of the employer with any terms or
conditions of the contract (other than a stipulation for the payment of premia), the provisions of that
sub-section shall apply as if the contract were not void or voidable, and the insurers shall be entitled to
prove in the insolvency proceedings or liquidation for the amount paid to the 1
[employee]:
Provided that the provisions of this sub-section shall not apply in any case in which the 1
[employee]
fails to give notice to the insurers of the happening of the accident and of any resulting disablement as
soon as practicable after he becomes aware of the institution of the insolvency or liquidation proceedings.
(4) There shall be deemed to be included among the debts which under section 49 of the Presidencytowns Insolvency Act, 1909 (3 of 1909), or under section 61 of the Provincial Insolvency Act, 1920
(5 of 1920), or under 2
[section 530 of the Companies Act, 1956 (1 of 1956)] arc in the distribution of the
property of an insolvent or in the distribution of the assets of a company being wound up to be paid in
priority to all other debts, the amount due in respect of any compensation the liability wherefor accrued
before the date of the order of adjudication of the insolvent or the date of the commencement of the
winding up, as the ease may be, and those Acts shall have effect accordingly.
(5) Where the compensation is a half-monthly payment, the amount due in respect thereof shall, for
the purposes of this section, be taken to be the amount of the lump sum for which the half-monthly
payment could, if redeemable, be redeemed if application were made for that purpose under section 7, and
a certificate of the Commissioner as to the amount of such sum shall be conclusive proof thereof.
(6) The provisions of sub-section (4) shall apply in the ease of any amount for which an insurer is
entitled to prove under sub-section (3), but otherwise those provisions shall not apply where the insolvent
or the company being wound up has entered into such a contract with insurers as is referred to in
sub-section (1).
(7) This section shall not apply where a company is wound up voluntarily merely for the purposes of
reconstruction or of amalgamation with another company.
3
[14A. Compensation to be first charge on assets transferred by employer.—Where an employer
transfers his assets before any amount due in respect of any compensation, the liability where for 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.]
15. Special provisions relating to masters and seamen.—This Act shall apply in the case of
4
[employees] who are masters of 5*** ships or seamen subject to the following modifications namely:—
(1) The notice of the accident and the claim for compensation may, except where the person
injured is the master of the ship, be served on the master of the ship as if he were the employer, but
where the accident happened and the disablement commenced on board the ship it shall not be
necessary for any seaman to give any notice of the accident.
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
2. Subs. by Act 30 of 1995, s. 7, for certain words (w.e.f.15-9-1995).
3. Ins. by Act 8 of 1959, s. 10 (w.e.f.1-6-1959).
4. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010).
5. The word “registered” omitted by Act 15 of 1933, s. 10.
18
(2) In the case of the death of a master or seaman, the claim for compensation shall be made
within 1
[one year] after the news of the death has been received by the claimant or, wherethe ship has
been or is deemed to have been lost with all hands, within eighteen months of the date on which the
ship was, or is deemed to have been, so lost:
2
[Provided that the Commissioner may entertain any claim to compensation in any case
notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he
is satisfied that the failure so to prefer the claim was due to sufficient cause.]
(3) Where an injured master or seaman is discharged or left behind in any part of 3
[India or] 4
[in
any foreign country] any depositions taken by any Judge or Magistrate in that part or by any Consular
Officer in the foreign country and transmitted by the person by whom they are taken to the Central
Government or any State Government shall, in any proceedings for enforcing the claim, be admissible
in evidence—
(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular
Officer before whom it is made;
(b) if the defendant or the person accused, as the case may be, had an opportunity by himself
or his agent to cross-examine the witness; and
(c) if the deposition was made in the course of a criminal proceeding, on proof that the
deposition was made in the presence of the person accused;
and it shall not be necessary in any case to prove the signature or official character of the person
appearing to have signed any such deposition and a certificate by such person that the defendant or the
person accused had an opportunity of cross-examining the witness and that the deposition if made in a
criminal proceeding was made in the presence of the person accused shall, unless the contrary is proved,
be sufficient evidence that he., had that opportunity and that it was so made.
5* * * * *
6
[(4)] No 7
[half-monthly payment] shall be payable in respect of the period during which the owner of
the ship is, under any law in force for the time being 8*** relating to merchant shipping, liable to defray
the expenses of maintenance of the injured master or seaman.
9
[(5) No compensation shall be payable under this Act in respect of any injury in respect of which
provision is made for payment of a gratuity, allowance or pension under the War Pensions and Detention
Allowances (Mercantile Marine, etc.) Scheme, 1939, or the War Pensions and Detention Allowances
(Indian Seamen, etc.)Scheme, 1941, made under the Pensions (Navy, Army, Air Force and Mercantile
Marine) Act, 1939 (2 & 3 Geo.), or under the War Pensions and Detention Allowances (Indian Seamen)
Scheme, 1942 (6, c. 83), made by the Central Government.
(6) Failure to give a notice or make a claim or commence proceedings within the time required by this
Act shall not be a bar to the maintenance of proceedings under this Act in respect of any personal injury,
if—
1. Subs. by Act 8 of 1959, s. 11, for “six months” (w.e.f.1-6-1959).
2. Added by s. 11, ibid. (w.e.f.1-6-1959).
3. Ins. by the A.O. 1950.
4. Subs. by Act 22 of 1984, s. 4, for certain words (w.e.f.1-7-1984).
5. Clause (4) omitted by Act 9 of 1938, s. 7.
6. Clause (5) renumbered as clause (4) of that section by s. 7, ibid.
7. Subs. by Act 7 of 1924, s. 2 and the First Schedule, for “monthly payment”.
8. The words “in Part A States and Part C States” omitted by Act 3 of 1951, s. 3, and the Schedule.
9. Subs. by Act 1 of 1942, s. 2 (w.e.f.3-9-1939).
19
(a) an application has been made for payment in respect of that injury under any of the schemes
referred to in the preceding clause, and
(b) the State Government certifies that the said application was made in the reasonable belief that
the injury was one in respect of which the scheme under which the application was made makes
provision for payments, and that the application was rejected or that payments made in pursuance of
the application were discontinued on the ground that the injury was not such an injury, and
(c) the proceedings under this Act are commenced within one month from the date on which the
said certificate of the State Government was furnished to the person commencing the proceedings.]
1
[15A. Special provisions relating to captains and other members of crew of aircrafts.—This Act
shall apply in the case of 2
[employees] who are captains or other members of the crew of aircrafts subject
to the following modifications, namely:—
(1) The notice of the accident and the claim for compensation may, except where the person
injured is the captain of the aircraft, be served on the captain of the aircraft as if he were the
employer, but where the accident happened and the disablement commenced on board the aircraft it
shall not be necessary for any member of the crew to give notice of the accident.
(2) In the case of the death of the captain or other member of the crew, the claim for
compensation shall be made within one year after the news of the death has been received by the
claimant or, where the aircraft has been or is deemed to have been lost with all hands, within eighteen
months of the date on which the aircraft was, or is deemed to have been, so lost:
Provided that the Commissioner may entertain any claim for compensation in any case
notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he
is satisfied that the failure so to prefer the claim was due to sufficient cause.
(3) Where an injured captain or other member of the crew of the aircraft is discharged or left
behind in any part of India or in any other country, any depositions taken by any Judge or Magistrate
in that part or by any Consular Officer in the foreign country and transmitted by the person by whom
they are taken to the Central Government or any State Government shall, in any proceedings for
enforcing the claims, be admissible in evidence—
(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular
Officer before whom it is made;
(b) if the defendant or the person accused, as the case may be, had an opportunity by himself
or his agent to cross-examine the witness;
(c) if the deposition was made in the course of a criminal proceeding, on proof that the
deposition was made in the presence of the person accused,
and it shall not be necessary in any case to prove the signature or official character of the person
appearing to have signed any such deposition and a certificate by such person that the defendant or the
person accused had an opportunity of cross-examining the witness and that the deposition if made in a
criminal proceedings was made in the presence of the person accused shall, unless the contrary is proved,
be sufficient evidence that he had that opportunity and that it was so made.
15B. Special provisions relating to 2
[employees] abroad of companies and motor vehicles.—This
Act shall apply—
(i) in the case of 2
[employees] who are persons recruited by companies registered in India and
working as such abroad, and
1. Ins. by Act 30 of 1995, s. 8 (w.e.f.15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010).
20
(ii) persons sent for work abroad along with motor vehicles registered under the Motor Vehicles,
Act, 1988 (59 of 1988) as drivers, helpers, mechanics, cleaners or other 1
[employees], subject to the
following modifications, namely:—
(1) The notice of the accident and the claim for compensation may be served on the local
agent of the company, or the local agent of the owner of the motor vehicle, in the country of
accident, as the case may be.
(2) In the case of death of the 2
[employee] in respect of whom the provisions of this section
shall apply, the claim for compensation shall be made within one year after the news of the death
has been received by the claimant:
Provided that the Commissioner may entertain any claim for compensation in any case
notwithstanding that the claim has not been preferred in due time as provided in this subsection, if
he is satisfied that the failure so to prefer the claim was due to sufficient cause.
(3) Where an injured 2
[employee] is discharged or left behind in any part of India or in any
other country any depositions taken by any Judge or Magistrate in that part or by any Consular
Officer, in the foreign country and transmitted by the person by whom they are taken to the
Central Government or any State Government shall, in any proceedings for enforcing the claims,
be admissible in evidence—
(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular
Officer before whom it is made;
(b) if the defendant or the person accused, as the case may be, had an opportunity by
himself or his agent to cross-examine the witness;
(c) if the deposition was made in the course of a criminal proceeding, on proof that the
deposition was made in the presence of ‘the person accused,
and it shall not be necessary in any case to prove the signature 017 official character of the peron
appearing to have signed any such deposition and a certificate by such person that the defendant or
the person accused had an opportunity of cross-examining the witness and that the deposition if made
in a criminal proceding vas made in the presence of the person accused shall, unless the contrary is
proved, be sufficient evidence that he had that opportunity and that it was so made.]
16. Returns as to compensation.—The 3
[State Government] may by notification in the Official
Gazette, direct that every person employing 1
[employees], 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 by the
employer during the previous year and the amount of such compensation together with such other
particulars as to the compensation as the 3
[State Government] may direct.
17. Contracting out.—Any contract or agreement whether made before or after the commencement
of this Act, whereby a2
[employee] relinquishes any right of compensation from the employer for personal
injury arising out of or in the course of the employment, shall be null and void in so far as it purports to
remove or reduce the liability of any person to pay compensation under this Act.
4
[17A.Duty of employer to inform employee of his rights.—Every employer shall immediately at
the time of employment of an employee, inform the employee of his rights to compensation under this
1. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010).
2. Subs. by s. 5,ibid., for “workman” (w.e.f.18-1-2010).
3. Subs. by the A.O. 1937, for “G.G. in C”.
4. Ins. by Act 11 of 2017, s. 2 (w.e.f.15-5-2017).
21
Act, in writing as well as through electronic means, in English or Hindi or in the official language of the
area of employment, as may be understood by the employee.]
18. [Proof of age.] Rep. by the Workmen’s Compensation (Amendment) Act, 1959 (8 of 1959) s. 12
(w.e.f. 1-6-1959).
1
[18A. Penalties.—(1) Whoever—
(a) fails to maintain a notice-book which he is required to maintain under sub-section (3) of
section 10, or
(b) fails to send to the Commissioner a statement which he is required to sent under
sub-section (1) of section 10A, or
(c) fails to send a report which he is required to sent under section 10B, or
(d) fails to make a return which he is required to make under 2
[section 16, or]
3
[(e) fails to inform the employee of his rights to compensation as required under section 17A;]
shall be punishable with fine 4
[which shall not be less than fifty thousand rupees but which may extend to
one lakh rupees].
(2) No prosecution under this section shall be instituted except by or with the previous sanction of a
Commissioner, and no Court shall take cognizance of any offence under this section, unless complaint
thereof is made 5
[within six months of the date on which the alleged commission of the offence came to
the knowledge of the Commissioner].]