Page 95 - Liability Insurance IC74

Guide for Liability Insurance

Q9. How is the amount of compensation determined
under Workmen's Compensation Act 1923 ?

Ans. the amount of relief pay able under the Act as per the
schedule is as follows:

The amount of compensation payable for : death is 50%
of monthly wages multiplied by the relevant factor
(minimum Rs.80,000) permanent total disablement 60%
of monthly wages multiplied by the relevant factor
(minimum Rs.90,000).

These amounts have been revised upwards by the
Employees Compensation Amendment Act 2009, w.e.f
18.01.2010. The revised amounts are Rs.12,000 for death
and Rs.14,000 for permanent disablement.

For permanent partial disablement the amount of
compensation depends upon the nature of disablement
and the percentage of loss of earning capacity specified
in the Act. This amount is to be computed after the
amount for permanent total disablement is ascertained.

The 'relevant factor' is specified in Schedule IV of the
Act , is the Age, i.e the age completed on his last birthday
immediately preceding the date on which the
compensation fell due.

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