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vishwanathsavula
19

Hi,
I would like to have a small clarification about WC Act in case of an employee death during his tenure with a company. Whether the act is applicable in case the employee passes away on holidays or due to ill-health.?
Regards,
Vishwanath

From India, Hyderabad
R.N.Khola
363

Dear Vishwanath,
If the accident did not happened in due course of & out of employment then the workman's dependents are not entitled to any amount of compensation from the employer under the Employees Compensation Act, 1923. For more details you may go through section 3 on 'employer's liability for compensation' under this Act.
With Regards,
R.N.Khola




From India, Delhi
Cite Contribution
1858

Dear Prena,
WC Act is Workmen's Compensation Act 1923. You may consider reading the information mentioned about it in the attached links.
https://www.citehr.com/250306-workme...3-amended.html
https://www.citehr.com/105059-fundam...ation-act.html
https://www.citehr.com/9447-workers-...anna-read.html
Regards,
(Cite Contribution)

From India, Mumbai
suyoglabourconsultants
11

Dear Vishwanathsahula,
It is well settled law that an accidents or mis happens are to be in connection and in the course of employment for entitlement of compensation to his/her dependents,Under The Workmen/Employees' Compensation Act.
Please refer as stated by Mr. Khola to get more knowledge about it.
regards,
KIRAN KALE

From India, Kolhapur
Raj Kumar Hansdah
1426

Dear vishwanathsavula

WC Act has been renamed as Employees' Compensation Act.

It covers injuries caused "out of" or "arising in the course of" employment.

Here, the phrase "out of" implies injuries which are a direct outcome of the work; such as caused by any accident or mishaps.

The phrase "arising in the course of" implies any injury while performing an official duty. This has a very wide scope and covers situation such as injury while going to or coming from work, accident while on an official tour; any disease which is occupational or caused by long exposure to assigned work.

To answer your specific question :

If an "employee passes away on holidays or due to ill-health" then the EC Act is not invoked; UNLESS there are Medical Evidence that connects the death to the employment. For example, an employee who was injured due to a work accident was on leave while recuperating or taking rest. Then he takes a holiday; or during the prolonged sickness caused by the accident/occupational hazards; passes away. Only in such cases the eligibility for compensation exists.

Hope, the above helps in clarifying your doubts.

Warm regards.

From India, Delhi
kannanmv
256

Dear Vishwanath,

The following conditions need to be considered for eligibility for payment of compention under the Employees Compensation Act.

1. There should be an accident.

2. The accident should have resulted in a personal injury to the employee.

3. The accident should have happened in the course and out of employment.

In the case cited by you none of the 3 conditions apply so the question of compensation is ruled out.

For your information I also cite the following that will be relevant to you (not applicable to the case cited by you)

There is also a Theory of Notional Extension in the Act that states that if an Employee is commuting to the place of work and dies then also it is deemed that he is in the course of employment, but here the mode of commutation should be such that that it was the only mode of commutation and the Geographical location of the place was such that he could not have travelled by any other mode of transport.

For your information there is a Personal Accident Policy (not statutory) that provides cover to the employees not covered under the Employees compensation act, if the company covers its employees under the PA policy the benefits are similar to the Employees Compensation Act. But the difference is the Policy is payable by the respective Insurance Company instead of the Company itself. The unique feature of the PA policy is, it is 24 hours worldwide for any type of accident that results in loss of earning capacity of the workman. Suppose the employee breaks his limb in his house while climbing down from the stairs and suffers loss of earning for a brief spell then a Weekly benefit is payable to the employee, subject to 1% of the sum assured or a specified sum (If my memory is right it is Rs.3000/- per week) whichever is lower. This is a wonderful policy that ensures payment as stipulated above for the period the employee is on Loss of Pay during the duration of accident.

M.V.KANNAN

From India, Madras
Raj Kumar Hansdah
1426

Dear kannanmv
It is not necessary that there should be an actual accident.
Do you think that the Act is not applicable in case of Occupational Diseases ??
They take a long time to develop; and compensation is payable under such circumstances.
Kindly refer to Section 3. (2) of the Act which specifically mentions Occupational Diseases.
These are not actual Accidents; but for the purpose of the act, deemed as accidents.
Warm regards.

From India, Delhi
dr.dksahoo
Mr. Rajkumar is absolutely right. If the death at home has no relationship with the work, then the WC Act cannot be applied. Rgds.
From India, Kochi
smbhappy
51

The ESI covers all risks under the ECA. So the Establishments covered under the ESI are under no liability to pay any compensation under ECA. It is a far more beneficial to the employers and employee together.
From India, Chandigarh
kannanmv
256

Dear Mr.Rajkumar, You are perfectly right in your statement of Occupational diseases. Sorry I missed it out. Thanks for the correction Regards M.V.KANNAN
From India, Madras
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