Company Vehicle Accident: Are We Responsible for Medical Bills and Salaries?

Friends,

I am working for an organization where we provide pick-up drop facility to our employees. One day, the cab met with a serious accident while they were coming to the office. Kindly tell me whether we are liable to pay for their medical treatment and also until when we have to pay their salary.

Thanks,
Nikhil

The company should pay for their treatment. As per the law, the company is supposed to pay their salary unless and until they are fit to resume their duties.

Hi everybody,

Thanks for your reply and help. Kindly also tell me under which act it comes and what it says. Secondly, also tell me if it is applicable to IT companies.

Regards,
Niukhil

Hi Nikhil,

Traveling from residence to work place and back is considered as travel on official work. In your case, transportation is provided by the company. When an employee is on official duty and meets with an accident, the company is liable to pay all his medical expenses and salary until the date of rejoining. The date of rejoining is decided by the doctor who is treating the employee.

Hope this helps.

Regards,
Rajeev

Hi,

The company should pay the treatment charges and salary until the employees resume duty.

Regards,
Deepshikha

Okay, this is when you travel by the company-provided vehicle. What if I use a public vehicle as a means of transportation to the office and meet with an accident.

Dear Nikhil,

If an employee dies during office hours, he will be entitled to compensation as per the Workmen's Compensation Act.

Regards,
Rajnish

Dear Nikil,

I do agree that the company shall pay the medical allowances since the accident has taken place while he is on the way to duty. As per the law, any accident arising out of or during the course of employment, he/she shall be provided with the allowances. If he/she is covered under ESI, the ESI Act is applicable, and if not covered, The Workmen Compensation Act says that the compensation has to be provided depending upon the degree of amputation caused by that accident.

Truly Yours, Kumar.H.P

Yeah, what is said is right. But if the employee has not reached the office and is on the way to the office and meets with an accident, is the employer liable to compensate? If so, why?

Hi Pramod,

I believe you need to reimburse the medical expenses as well as pay their salary until they rejoin because they utilized the office transport.

Thanks and Regards,
Indrani Chakraborty

Dear Friends,

This is really a good topic to be discussed. As many of you have mentioned, the employee is on the way to duty, and you have asked which law we need to follow for payment. In my opinion, it is not specified by any law, but we still need to pay since the employee will be using the company vehicle. This should be done on humanitarian grounds. If I am not mistaken, there was a judgment in a similar case where an employee went to court, but I am unsure of the details related to that case.

Another point to consider, as mentioned by you, is that any accident occurring while the employee is working is considered an injury on duty and will fall under the Workmen's Compensation Act.

Please correct me if I am wrong about any of these matters.

Regards,
Amith R.

An employee will be compensated under the Workmen's Compensation Act only when the accident took place during the course of work. Likewise, my question is whether the employee can ask for any compensation if the employee meets an accident when traveling to the office in a public vehicle or their own vehicle, but not in a company-provided vehicle.

Dear Amith,
I would like to differ from you, In case the employee is on his way to work and has met with an accident, he has a provision to be compensated by law. There is no question of humanitarian grounds as judgment has been given in the court of law in similar cases.
Dear Pramod,
I was going through this conversation and realized that you have put across the same question two times but got no response for the same.
“An employee will also be compensated if he/she meets with an accident when he travels to office in public vehicle or his own vehicle but not in a company provided vehicle.”
Warm Rgds

Hi Kunjal,

I would like to know why the employee has to be compensated if he/she meets with an accident on his/her way to the office while traveling in a non-office provided vehicle. Kindly shed some light on my query.

Thank you in anticipation.

Indrani Chakraborty

Dear Kunjal,

Yes, even I want the same clarification. Please also clarify according to which law an employee can receive compensation. Kindly shed some light on both.

Regards,
Amith R.

Hello Friends,

I went through all the conversations. I am sorry that I happened to come across this discussion very late. I noticed that this string could not be closed.

As per the provisions of the Workmen's Compensation Act -1923, accidents happening during the course of employment will be deemed to fetch compensation from the employer. The entire period of commuting from home to the office and vice versa is also regarded as the course of employment, regardless of the mode of transport, whether it be company-provided, public transport, or private transport.

As per the provisions of the Workmen's Compensation (Amendment) Act -2000:

The minimum amount of compensation for death has been enhanced from the existing Rs 50,000 to Rs 80,000 and for permanent total disablement from the existing Rs 60,000 to Rs 90,000. Additionally, the ceiling on monthly wage prescribed for determining the maximum amount of compensation has been increased from Rs 2,000 to Rs 4,000. The amount of funeral expenses payable has been increased from the existing Rs 1,000 to Rs 2,500.

Regards,

Amit Goyal

9811558950

Hi Friends,

Thank you for such a huge response. Thanks a lot once again to all the members.

After reading all the responses, management has decided to compensate the affected employees.

Regards,
Nikhil

Road accidents are not covered under ESI. However, this accident will be considered as an accident arising in the course of employment.

Regards,
Vikram

Hi,

I think the treatment facility should be provided by the employer until he is completely fit to come back. The salary should be in favor of the employee.

Thanks & Regards,
Shahjahan

Hi,

I would like to add to views already expressed.

The company is liable to pay compensation. The salary to the employee should be paid till the employee is fit to join the company. If covered under ESIC, the ESIC will pay for the employees. But just because employees are covered under ESIC, it doesn't make them not liable for treatment because, as per the latest judgment, ESIC can be a matter of choice for the employee and not a matter of compulsion.

The management can also be held liable for compensation if the particular case is not handled sensitively and appropriately.

Workmen's Compensation Act and ESIC are major acts you need to refer to in this particular situation. Workmen's Compensation Act can also be substituted for tort, as similar provisions are also liable under the law of tort.

ESIC doesn't cover accidents; it covers the inability of the employee to perform if he meets with an accident.

The employee, when coming to work, if met with an accident, has to be paid compensation because there is a provision for the same in the statute.

Salary has to be paid to the employee till the employee is certified by a doctor (an MD and not MBBS) that he is fit to resume his work.

Thank you,

Octavious

Dear Gigi,

This falls within the ambit of the "Theory of Notional Extension" as per the ruling of the Hon'ble Supreme Court. The applicability of this principle was under the Workmen's Compensation Act, 1923, and is also applicable in the case of ESI. Now, if the employee is covered by either of the two Acts, then he should be paid "Temporary Total Disablement Benefits". For all other cases, refer to the Company's Medical and Accident Insurance Coverage.

Regards,
SC

It depends upon the agreement with the transporter; obviously, the company should take care of the treatment of employees. In every organization, employees are covered under ESI or Mediclaim policy.

Any employee who has boarded the company bus is said to be on the job. As per my understanding, all the compensation and benefits should be given to him/her.

Thanks,
Praveen

Dear Nikhil,

Do you have a personal accidental policy in your company? Yes, all the expenses will be borne by the company. We have faced a situation where an employee died at the workplace, so the company gave full compensation to his family. It requires legal work too.

Regards,
Gauri

In Oman, we consider that if an employee is on their way to the office and is involved in an accident, the company should bear the medical expenses as the employee was on duty at that time, not off duty.

NS

Friends,

Thanks for the responses I received. Our company has decided that we should provide personal accident and Mediclaim insurance for each employee. Additionally, we will be paying full salary to employees until they are back to work.

Thanks once again to all the respondent members for their responses.

Nikhil Kumar
+919891371119

Dear All,

Please let me know the legal aspects for this scenario. Is the employer liable to pay for the employee's salary, leaves, and compensation until the employee joins duty? If there are any updates or acts related to this, please reply or email me at [email protected]

Cheers,
Pranay

Dear,
While deciding the course of action please keep the following sections of workmen compensation act and existing Praccices

15. —(1) If in any employment personal injury by accident arising out of and in the course of the employment is caused to a workman, his employer shall, subject to the provisions of this Act, be liable to pay compensation in accordance with the provisions of this Act.
(2) Where an accident results in the death or serious and permanent disablement of a workman, such accident shall for the purpose of this Act be deemed to arise out of and in the course of his employment notwithstanding the fact that such workman was at the time when such accident happened acting in contravention of any statutory or other regulation applicable to his employment, or of any orders given by or on behalf of his employer, or that he was acting without instructions from his employer, if such act was done by such workman for the purpose of and in connection with his employer's trade or business.

23. —Where compensation is payable under this Act in respect of an injury to a workman which does not result in his death, the compensation shall be a weekly payment during the period of incapacity (except, where the incapacity lasts less than four weeks, the first three days of such incapacity) of an amount calculated in accordance with the rules contained in the Third Schedule to this Act.


Please let me know your views

Regards,
Bishwajeet

Hi,
As per the Workmen's Compensation Act of 1923, the employer is required to pay compensation if employees travel by company cab.

Thank you.

Dear Nihil,

If an employee meets with an accident while reporting for duty, then the injury or death is not attributable to employment. Members of this site have replied to your query, saying that medical charges should be paid by the company. However, I beg to differ with everyone as time and again this particular case has come before the courts in different forms.

So far, four different High Courts and the Supreme Court in two different cases have ruled that before an employee records his/her attendance, injury or death is not attributable to the employer/employment. This is applicable even when an employee records his exit attendance as well.

Earlier, I had preserved the case numbers of these rulings. Unfortunately, when my system crashed, I lost that valuable data. Nonetheless, I stand by what I say.

I recommend you seek legal opinion. You can reimburse the medical expenses to foster better employee relations or out of humanity, but not under legal compulsion.

Thanks,

Dinesh V Divekar