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kbadtia
Hi, I would like to know if an accident happended in the company cab while returning from office is covered under wokers compensation act.
From Singapore
Madhu.T.K
4193

Travelling in company provided vehicle is a part of employment contract. It is therefore, implied that the employee is on employment while the accident takes place and as such compensation as per Workmen's Compensation Act is applicable in such cases.
By a recent amendment to ESI Act, accident happening while the employee is undertaking his journey to his office or from his office to his residence will be treated as accident while on duty provided the time when and route where the accident takes place agree to the employee's routine route and time.
Regards,
Madhu.T.K

From India, Kannur
kvrm2002
10

Even before the ESI (Amendment)Act 2010, which is yet to come in to force,as per the provisions of Section 51-C of the ESI Act,accident happening while travelling in employer's transport, or in any other transport as a passenger with the express or implied permission of his employer, is deemed to arise out of and in the course of employment, and th employee is eligible to disablement benefit.
The new amendment treats the accidents happening when travelling in other than employer's transport i.e. own vehicle or public transport etc. while coming for work or returning home after the work, as notional extension of employment for eligibility to disablement benefit.
-Ramanamurty, Hyderabad.

From India, Hyderabad
kbadtia
The employee has brought a claim of around Rs 2 crores for his injuries. Is there any limit imposed to the claim for certain permanent scheduled & unscheduled injuries.
Few of the injuries in the claim is listed below.
1. Partial injury to the eye
2. Little impairment to speech
3. Little memory disorder
4. Scar in the face
& social embarrasment & consequential losses are also included the claim. Or, the compensation is only limited to his loss of earning capacity.

From Singapore
Madhu.T.K
4193

The earlier provision of ESI was restricted to injuries arising out of accidents while the employee is travelling in connection with his employment, like, going to bank to withdraw or deposit company money, filing returns etc but injuries arising out of accidents while commuting to office or back to his residence were not considered as injuries arising out of employment. Certainly, years back such a provision had existed which has been reintroduced now.
Compensation under the Workmen's Compensation Act is restricted to a sum calculated considering loss of earning capacity and there is a cap to the amount also. A claim of Rs 2 crores may be entertained by raising the same through MACT (Motor Vehicles Claim Tribunal) and not through Workmen's Compensation.
Regards,
Madhu.T.K

From India, Kannur
rsankara
From what I read the employee is trying to exploit the situation (very common in USA). As others have pointed out the company is liable. You may have to hire a good lawyer to handle the claim in a labour court. I suggest the following preventive measures not only for your company but other companies too:
1. Employees should use the compang cab / vehicle only for official purposes. Hitching a ride for personal work should not be permitted.
2. Cover all employees under the PAI (personal accident insurance). The premium is typically around rs 250 / employee and covers accidents outside premises while coming to and going back from work.
3. Ensure that all contracted vehicles used for company purpose are registered and the drivers covered under ESI.
4. Prevent / avoid road travel for all employees after dark.


dlghr89
29

Hi,

Please see the clarifications.

a) In the indian judicial history for a motor vehicle accident even resulting in death of an individual there are no citataions available for having granted compensation to the tune of 2 crores.

b) Since the accident has happened in the cab provided by the company it is considered as " Accident while in the course of employment"

c) However the claim can be made not directly on the company in any case, as these will be covered by the motor vehicle insurance. Apart from WC company has no legal binding to pay any other compensation, what ever case the employee makes.

d) Also there are instances where courts have restricted claiming / combining of insurance /compensation from more than one insurance agency. In these cases compensations have been limited to the highest available amount from a specific policy.

e) If the company has continued to provide the employment to the person with the same salary then claim based on loss of earning capacity becomes weak. However he / she may claim that due to accident his capacity to perfrom the job is affected, which does not stand in the eyes of law since his employment gets continued.

Kind regards

Dayanand L Guddin

Advisor HR

BOBST INDIA

PUNE

From Singapore, Singapore
vineet.hr
the notional theory of extension is applicable in this case. though it ought to be proved tht the employee was travelling straight home and not home via a personal work....incase of the latter he would lose the lien and not be fit for compensation...
From China
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