How Do You Calculate Compensation for Permanent Partial Disablement? Seeking Advice from Experienced Professionals

Dear seniors, I would like to know how to calculate compensation for an employee in relation to permanent partial disablement.

Regards,
Pavani

Dear Sir, I would like to inquire about the procedure for payment of compensation in the case of permanent partial disablement. An accident occurred on April 6, 2006. The workman received a disablement certificate on July 10. I am seeking clarification on the base date for the calculation of compensation. Should the payment be made directly to the workman or through the Compensation Commissioner? Your guidance on this matter would be greatly appreciated.

Thank you.

Dear Sir, you have cited the case of a permanent partial disablement. Therefore, the disablement has to be finally assessed after any possible treatment. In your case, the accident occurred on 6-4-2006, and the assessment was made in July 2010. The question is, why was there this delay in making the assessment? Was he taking treatment or not? The facts furnished by you are insufficient to take a view on the matter.

Regarding Procedure

In case there is an agreement between you and the workmen regarding the quantum of compensation, then enter into an agreement with him (the form K is prescribed under the Employees Compensation Rules) and send the agreement to the Employees Compensation Commissioner. Otherwise, if there is no agreement, you can deposit the amount agreed to by you with the Employees Compensation Commissioner. If the worker claims more amount as compensation, let him file a claim before the Commissioner. In case the Employees Compensation Commissioner decides on compensation in an amount that is more than what you have deposited, the amount deposited by you can be set off against the total quantum decided by the Commissioner. Another advantage of depositing is that from the date on which the amount is deposited by you with the Commissioner, you are not liable to pay interest on the compensation payable.

With regards,

If your establishment is covered under ESIC, the concerned authority will inspect the amount of disablement caused, and based on the report, compensation is provided under the ESIC Act. Meanwhile, you should have submitted the details of the accident to the factory inspector (Inspector of Factories earlier, now Department of Factories and Boilers). They will determine the amount of compensation through the Labour Welfare Fund.