Can Employees Claim Compensation for Accidents During Commute? Let's Discuss

Employee Accident Compensation Query

If an employee, while commuting to or from work, meets with an accident and sustains non-fatal or fatal injuries, can they claim any compensation from the employer? Is the employer obligated to provide compensation to the injured employee? If so, under which section of the law?

Regards

Mr. Khaleel, he cannot claim any compensation from the employer. If he is covered under ESIC, he will receive medical benefits and leave payment for the rest period as prescribed by the medical officer. If he is exempt from ESIC but insured under medical insurance provided by the company, he can utilize it. If he is covered under personal accident insurance, he can claim compensation.

Compensation for Accidents Under the EC Act 1923

The provision in the EC Act 1923 is that the accident has to arise 'out of and in the course of employment' for compensation to be payable. The notional extension of employment theory allows the travel period to be considered as in the course of employment. However, the pertinent fact is whether the injured employee was there on account of employment or if the terms of employment necessitated the presence of the employee at the site of the accident. Only then is compensation payable. If the employee was there just like any bystander at the accident site, then compensation is not payable. Please examine the facts of the matter thoroughly in the above light before drawing a conclusion.

Employee Accident Compensation: Eligibility and Process

An employee who meets with an accident while commuting to the workplace or returning home after work will be eligible to receive compensation or accident benefits from the ESI Corporation or from the employer if the employee is not covered by ESI schemes. This is applicable provided the location and time of the accident coincide with the regular commute to and from the workplace. The notional extension of the workplace will apply in such cases.

Procedure for ESI-Covered Employees

In case the employee is covered by ESI, the employer must upload Form 12 on the ESI portal. Subsequently, a site map of the accident location (a drawing showing the place of the accident) must be submitted. The accident report should include the time of completion of work on the day of the accident or the time the employee is expected to report to work. This information helps the Corporation decide whether the notional extension applies to the particular case.

Procedure for Non-ESI Employees

For employees not covered by ESI, the employer's policy under the Employees' Compensation Act also covers such road accidents. If the employer has not taken any policy to cover the compensation payable under the Employees' Compensation Act, the employer should bear the compensation costs.