Understanding Compensation for Accidents: How Do You Calculate Payments for Fatalities or Disabilities?

Dear All,

I would like to know the calculations regarding the compensation to be paid to the victim in case of an accident causing fatality/permanent disability. Please let me know the statutory requirements regarding this. Can anyone please come up with an example?

Thanks in advance.

With regards,
Dipil Kumar V

It depends on the company, Mr. Dipil. What I suggest regarding your query is that you discuss it with your HR. He or she will provide the exact details. In my company, they provide all details on the very first day of orientation, such as compensation, insurance, etc.

Note: Please refer to the state law too.

Regards

If the deceased is covered under ESI, the dependents will receive compensation as per the ESI Act. If not, compensation is payable under the Workmen's Compensation Act. The Labour Commissioner will determine the compensation payable to the dependents. The company can claim the compensation payable from the insurance companies if they have taken the Workmen's Compensation policy for all employees.

Regards,
Pon

Dear Raghu, First of all, thanks a lot for bringing back this old query. Also, thanks a lot for your input. We have a separate ER department dealing with all the statutory parts. However, I am not receiving much help or support from them to learn things due to several reasons. So, I brought this question into the forum a while back.

Dear Pon, Our organization is not covered under the ESI Act, but all the workers are covered under the Workmen Compensation Policy.

Clarification Needed on Compensation Acts

Now, can you help me clarify the following:

1. Is the Workmen's Compensation Act common to all states, or like factory rules, is it different for each state?

2. Is there any clause in the Factories Act or Rules regarding the compensation to be paid to the victim of an accident?

The compensation calculation is clear from the act. I have gone through it after starting this thread only. It's available on the net. However, many basic doubts regarding the Factories Act and Workmen Compensation Act still exist in my mind. I hope with the help of forum members, I can sharpen my skills.

Thanks in advance.

The Workmen's Compensation Act (W.C. Act) is common to all states (with possible exclusion in J&K). Compensation should be paid in accordance with the W.C. Act only. Please refer to the W.C. Act for information on different types of compensation.

Regards,
Pon

Regarding my concern about compensation, it is calculated based on the age of the victim and the relevant factor, which is 50% of the monthly wages multiplied by the relevant factor. There are different relevant factors based on the age of the victim. For instance, a lower age relevant factor is higher. For example, at 22 years old, the relevant factor is 282.54. As the age increases, the factor decreases.

Thank you.

What type of organization is yours? Is it a private company? Upon joining, did this company provide an appointment letter and CTC sheet? Do the employment terms mention anything about PF? Please provide more details so that any forum member can offer you the right advice.

Let me now share my views regarding your second query. The company was not supposed to cut her PL. Does your company come under ESI? Alternatively, did they cover all employees under workmen compensation insurance? Report the accident case to the insurance company, from where you will receive compensation for medical expenses and wages lost.

Please provide more information. I am confident that any forum member will provide you with the correct guidance.