Page 41 - Insurance Times May 2022

The following chart shows the percentage of contribution of different Insurance Companies to the ERF Scheme as on
31.3.2019.

Introspection: B) Scale of Compensation under W.C. Act, 1923 varies
with age, last drawn wages before the accident and
When the Public Liability Insurance Bill was introduced in
"Relevant factor"( one multiplier varies with age
parliament, and when subsequent amendment bills came
provided under the act; compensation is derived
up for discussion, a key suggestion was "to increase the
multiplying that factor with the last drawn wages by
amount of relief". As a matter of fact, this relief amount is
negligible when compared with the present day expenses the employee before the accident). Under W.C Act,
as well as the quantum of relief provided in other types of 1923 maximum wages considered to calculate the
accidents. Compensation for Death was Rs.4,000/-; it has been
enhanced to Rs.8,000/- in 2009 and again revised to
Rs.15,000/- in 2020. With the increase of wages,
Let us examine the provisions of Statutory law pertaining
to liability under The Motor Vehicles Act (M.V.Act), 1988, Compensation amount has also increased. Accordingly,
Workmen Compensation Act (W.C.Act), 1923, The benefits/ at present, the compensation for Death, Permanent
relief are also on NO FAULT LIABILITY basis.

M.V. Act, 1988 have been revised in 2019. Nomenclature
of Workmen Compensation Act, 1923 has been changed to
Employees' Compensation Act, 2009 with increased benefits
and benefits have again been revised upwards in 2020. Let
us discuss provision of quantum of liability say, only for Death
and Permanent Total Disablement under these two acts:
A) Under No fault Liability of Motor Vehicles Act, 1988,
Death benefit was Rs.50,000/ and Permanent Total
Disablement was Rs. 25,000/-; In 2019, it has been
increased to Rs.5,00,000/- for Death and Rs.2,50,000/
- due to Permanent Total Disablement, i.e. quantum of
compensation has been increased by 10 times.

The Insurance Times, May 2022 41