Employees' Compensation for Workplace Injury

When liability arises

• Personal injury caused by an accident arising out of and in the course of employment.
• Occupational diseases listed in the schedules to the Act.
• Liability is generally excluded where the injury results from the employee's intoxication or wilful disobedience of a safety rule, subject to exceptions.

Employees covered by ESI receive benefits from ESIC instead, so the two rarely overlap.

Employer duties

• Maintain an accident register and report fatal and serious accidents to the authority.
• Take a compensation insurance policy where ESI does not apply, particularly for construction and contract work.
• Deposit compensation with the Commissioner rather than settling privately, where required.

Frequently asked questions

Do we need workmen's compensation insurance if ESI applies?

Employees covered by ESI receive benefits from ESIC. A policy is still advisable for employees outside ESI coverage.

Who decides the compensation amount?

It is computed under the Act by reference to wages, age and the nature of the disablement, and disputes are decided by the Commissioner.

Sources & references

• India Code — Central Acts