Page 216 - Liability Insurance IC74

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Q7. Explain employer's liability towards workmen,
under Workmen's Compensation Act 1923.

Ans. Ref Q1 of May 2008

According to this Act, an employer is liable to pay
compensation if person injury is caused to the workmen
by accident arising out of and in the course of
employment. However, the employer is not liable in
respect of any injury caused by an accident which is
directly attributable to:
(i) the workmen having been under the influence of

drink or drugs.
(ii) the willful disobedience of the workmen to orders

and rules expressly given secure the safety of the
workmen.
(iii) the willful removal or disregard by the workmen of
any safety device provided for the safety of
workmen.

All the above three defenses however are not available
to the employer, if the injury results in death. The term
'accident' is given its popular meaning, viz 'and event
which is neither expected nor desired'. The words 'in
the course of employment' indicate the time when the
injury is caused, whereas the words 'out of employment'
establishes the causal connection between the injury and

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