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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 39] NEW DELHI, FRIDAY, AUGUST 23, 1963/BHADRA, 1, 1885

LOK SABHA

The following Bill was introduced in Lok Sabha on the 23rd August, 1963: —

BILL NO. 36 OF 1963

A Bill to impose on employers a liability to pay compensation to

workmen sustaining personal injuries and to provide for the

insurance of employers against such liability.

BE it enacted by Parliament in the Fourteenth Year of the Republic of India as follows: —

CHAPTER I

PRELIMINARY

1. (2) This Act may be called the Personal Injuries (Compensa- 5

tion Insurance) Act, 1963.

(2) It extends to the whole of India.

Short title, extent and commence- ment.

(3) It shall come into force on such date as the Central Govern- ment may by notification appoint.

2. In this Act, unless the context otherwise requires,—

10

Definitions.

(a) "employer" includes any body of persons whether incor- porated or not and any managing agent of an employer and the legal representative of a deceased employer, and when the servic- es of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means the latter person while the workman is working for that other person;

(589)

463 G of I Ex.—1.

(b) the "Fund" means the Personal Injuries (Compensation Insurance) Fund constituted under section 13;

59 ot 19^2.

(c) "gainfully occupied person" and "personal injury" have the meanings respectively assigned to those expressions in the Personal Injuries (Emergency Provisions) Act, 1962; 5

(d) "notification" means a notification published in the Official Gazette;

(e) "partial disablement" means, where the disablement is of a temporary nature, such disablement as reduces the earning capacity of a workman in any employment in which he was IO engaged at the time the injury was sustained, and where the dis- ablement is of a permanent nature, such disablement as reduces his earning capacity in any employment which he was capable ot undertaking at that tinit*:

Provided that permanent partial disablement shall be deemed 15

20 to result from every injury, or from any combination of injuries, specified in the Schedule, where the percentage, or the aggregate percentage, of disability as specified in the Schedule against such injury, or combination of injuries amounts to less than one hundred per cent.;

(f) "period of the emergency" means the period beginning with 26th October, 1962, the date on which the Proclamation of Emergency under clause (1) of article 352 of the Constitution was issued, and ending with such date as the Central Government may by notification declare to be the date on which the emer- -5 gency shall come to an end;

(g) "prescribed" means prescribed by rules made under sec- tion 22;

(h) "total disablement" means such disablement whether of a temporary or permanent nature, as incapacitates a workman 3c for all work which he was capable of performing at the time the injury was sustained:

Provided that permanent total disablement shall be deemed to result from every injury, or from any combination of injuries, specified in the Schedule, where the percentage, or the aggregate 3: p e t t w - i r" ,-,f disability as specified in the Schedule against such injury, or combination of injuries, amounts to one hundred per cent, or more.

(t) the "Scheme" means the Personal Injuries (Compensa- tion Insurance) Scheme referred to in sub-section (1) of section 8; 4c

* of ncq.

(j) "wages" means wages as defined in the Workmen's Com- pensation Act, 1923, and "monthly wages" has the meaning assigned to (hat expression by section 5 of the Workmen's Cofti- p;jn.5tnion Act, 1923, and shall be calculated for the purposes of 5 this Acl in iho nif.nner laid down in that section;

(Jo) "workman" means any person (other than a person whose employment is oi a casual nature and who is employed otherwise than for the purposes of the employer's trade or busi- ness) who is employed in any or the employments specified in jo section 3.

CHAPTER II

COMPENSATION PAYABLE UNDKR THE ACT

3. The workmen to whom this Act applies are—

wh"m the :

Ac,¹ wliw, (a) workmen employed in any employment or class of 15 employment which is, or hap been declared to be, an essential service under rule J26AA of the Defence of India Rules, 19#2;

(b) the workmen employed in any factory as defined in clause (m) of section 2 of the Factories Act, 1948;

63 uf 194 1

(c) workmen employed In any mine within the meaning of 20 the Mines Act, 1852;

35 of J953-

(d) workmen employed in any major port;

(e) workmen employed in any plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951;

Si? of 1 9 5 7,

(f) workmen employed in any employment specified in this 3j behalf by the Central Government by notilication.

Compel)**-

tit>u paytWv

airier ft*

Act, by

4. (1) There shall, subject to such conditions as may be specified in the Scheme, be payable by an employer in respect of personal injury sustained by a gainfully occupied person who is a workman to whom this Act applies, compensation, in addition to any relief ,0 provided under the Personal Injuries (Emergency Provisions) Act, 1962, of the amount and kind provided by section 7:

59 of I96a

Provided that where an employer has taken out a policy ©•! insurance, as required by sub-section (1) of section 9, and has randt all payments by way of premium thereon which are subsequently a- due from him in accordance with the provisions of the Scheme or where by the provisions of sub-section (1) of section 0 or of sub- section (2) of section 10 the employer is not required to insure, the

Central Government shall assume and discharge on behalf of the employer the employer's liability to pay compensation under this sub-section.

(2) The compensation payable under this Act shall be payable in accordance with the provisions made in this behalf in the Scheme.

(3) This section shall be binding on the Government.

5. Where any person has a right apart from the provisions of . this Act and of the Personal Injuries (Emergency Provisions) Act, 1962, to receive compensation (whether in the form of gratuity, pension, compassionate payment or otherwise) or damages from an ic Limitation on right to receive com- pensation otherwise than under this Act and Act 59 of 1962.

¹ employer in respect of a personal injury in respect of which com- pensation is payable under this Act, the right shall extend only to so much of such compensation or damages as exceeds the amount of compensation payable under this Act.

6. Where any person in the employ of Government has under j* Speciil provisions ii relation to emplttyeet ( <3"Tornmen

59 of it"3.

the rules regulating the conditions of his service a right apart from the provisions of this Act or of the Personal Injuries (Emergency Provisions) Act, 1962, to receive any sum, whether as extraordinary pension, gratuity, compassionate payment or damages, from the Government in respect of a personal injury in respect of which ao compensation is payable under this Act, then, notwithstanding any- thing contained in this Act or the Personal Injuries (Emergency Provisions) Act, 1962, that person shall have the right to receive the sum admissible under those rules and if the sum so admissible is less than the amount payable as compensation under this Act and 25 the Personal Injuries (Emergency Provisions) Act, 1962, then, he shall have a further right to receive an amount equal to the dif- ference between the sum admissible under those rules and the amount of compensation payable under this Act.

7. (1) The compensation payable under this Act shall be as 30 follows: —

Amount of compensa- tion.

8 of 1923.

(a) where death results from the injury the amount pay- able in a like case under the Workmen's Compensation Act, 1923, reduced by the value in lump sum of the amount payable under the Personal Injuries (Emergency Provisions) Act, 1962; 35

59 of 196:2.

(b) where permanent total disablement results from the injury the amount payable in a like case under the Workmen's Compensation Act, 1923, reduced by the value in lump 'sum of the amount payable under the Personal Injuries (Emergency Provisions) Act, 1962;

(c) where permanent partial disablement results from the

injury—

(i) in the case of an injury specified in the Schedule- such percentage of the compensation which would have 5 been payable in the case of permanent total disablement as is specified therein as being the percentage of disablement;

59 of 196a.

(ii) in the case of an injury not specified in the Schedule—-the percentage of such compensation specified in the Schedule for disablement held by a competent medical 10 authority acting under the Scheme made under the Personal Injuries (Emergency Provisions) Act, 1962, to be of corres- ponding degree;

(Hi) where more injuries than one are sustained—the aggregate of the compensation payable in respect of those j" injuries, so however as not to exceed in any case the com- pensation which would have been payable ii permanent total disability had resulted from the injuries;

1 of iya3.

(d) where temporary disablement, whether total or partial, results from the injury, the half-monthly payments payable in 30 a like case under the Workmen's. Compensation Act, 1923, reduced in each case, so long as he receives any payment under the Scheme made under the Personal Injuries (Emergency Provisions) Act, 1962, by the amount payable under the said Scheme.

25 (2) Where the monthly wages of a workman are more than five hundred rupees, the compensation payable under this Act shall be the amount payable under the provision^ of sub-section (1) in the case of a workman whose monthly wages ere more than four hundred rupees.

30 CHAPTER III

PERSONAL INJURIES (COMPENSATION INSURANCE) SCHEME

Personal Injuries (Compensa- tion Insurance) Scheme.

8. (1) The Central Government shall, by notification, put into operation a Scheme to be called the Personal Injuries (Compensa- tion Insurance) Scheme whereby provision is made for all matters 3" necessary to give effect to the purposes of this Act and whereby the Central Government undertakes, in relation to employers of work- men to whom this Act applies, the liabilities of insuring such employers against liabilities incurred by them to workmen under this Act and the Scheme.

(2) The Scheme shall secure that any liability of the Central Government as insurer under the Scheme is determined by a policy of insurance issued in the prescribed form by a person acting on behalf of the Central Government.

(3) The Scheme may provide that it shall come into operation t or shall be deemed to have come into operation on such date as may be specified therein.

(4) The Scheme may be amended at any time by the Central Government.

(5) Without prejudice to the generality of the provisions of sub- io section (1), the Scheme may—

(a) make provisions regulating the payment of the com- pensation payable under this Act and the Scheme, including provisions 'for punishment by fine not exceeding two thousand rupees for the contravention of any requirement of the i"; Scheme;

(b) make provisions specifying the persons to whom and the proportions and manner in which payments under this Act shall be made;

?V of 19*3.

(c) make provisions for determining the value in lump sum of the amount payable under the Personal Injuries (Emergency Provisions) Act, 1962;

(d) specify conditions or circumstances which will disentitle a workman to the compensation payable under this Act, and make it an express or implied condition of any policy of insurance 2< Issued under the Scheme that the payment of compensation in defiance of such specification is not covered by the policy;

(e) specify the conditions or circumstances under which the compensation payable to a workman may be withheld, cancelled, reduced or reviewed if the award made under the Scheme made 30 under the Personal Injuries (Emergency Provisions) Act, 1962, is withheld, cancelled, reduced or reviewed;

(J) provide for cases in which an employer has of his own accord undertaken a part or the whole of the liability imposed by this Act;

35

(g) provide for the final assessment of the total premium due on a policy of insurance under the Scheme either as the equivalent of all advance payments of premium already made by an em- ployer, or as a percentage of the total wages bills of an em- ployer for the periods with reference to which the amount of any jo

advance payments made by him was fixed or as a percentage oJE the total wages bill of an employer for a period of not less than twelve or more than fifteen months immediately preceding the expiry of the period of the emergency, and for the assess- 5 ment of the total premium due on a policy which has ceased to be in force before the expiry of the period of the emergency- owing to the employer having gone out of business;

(h) provide for the recovery from an employer of the total premium due on a policy of insurance including provision for its ro recovery by periodic advance payments of an amount based on a percentage ot his total wages bill for any prescribed period, the separate funding of the payments so made by each employer, and the eventual adjustment of t^he total premium as finally assessed against the total of such periodic payments:

[5 Provided that where the amuutit of the periodic payment based on the total wages bill of the prescribed period is less than eight rupees, it shall be increased to eight rupees:

Provided further that the first of such periodic payments shall, subject to the aforesaid minimum of eight rupee*;, be at to such rate as the Central Government may specify in this behalf:

Provided further that such periodic payments shall not be more frequent than once in each quarter of a year:

Provided further that the rate of any periodic payment after the first shall, subject to the aforesaid minimum of eight rupees, ²5 be such as the Central Government may, after considering its liabilities under this Act, fix from time to time, and the Central Government may, where the total amount in the Fund so re- quires, either "waive or postpone any periodic payment,

Compulsory insurance.

9. (1) Every employer of workmen to whom this Act applies or < 3° is subsequently made applicable, except an employer whose total ' wages bill for any quarter after the commencement of this Act has never exceeded fifteen hundred rupees, shall, before such date as may be prescribed, or before the expiry of such period as may be prescribed after his having first become such an employer, take out 35 a policy of insurance issued in accord mce with the Scheme, where- by he is insured until the expiry of the period of the emergency or until the date, if any, prior to the expiry of the period of the emergency at which he ceases to be an employer to whom this sec- tion applies, against all liabilities imposed on him by this Act.

40 (2) Whoever contravenes the provisions of sub-section (1) or, having taken out a policy of insurance as required by that sub-section,

fails to make any payment by way of premium thereon which Is subsequently due from him in accordance with the provisions of the Scheme, shall be punishable with fine which may extend to two thousand rupees and shall also be punishable with a further fine which may extend to one thousand rupees for every day after having 5 been so convicted on which the contravention or failure continues.

(3) This section shall not bind the Government.

Principal* and contractors.

10. (1) Where a person (in this section referred to as the princi- pal) uses, in the course of or for the purposes of his trade or busi- ness, the services of workmen temporarily lent or let on hire to him*¹⁰ by arrangement with another person with whom the workmen have entered into contracts of service or apprenticeship, or in the course of or for the purposes of his trade or business, contracts with any other person for the execution by or under such other person of the whole or any part of any work which is ordinarily part of the trade *5 or business of the principal (either such other person being in this section referred to as the contractor) the principal shall obtain from the contractor the name of the agent of the Central Government acting under section 11 with whom he intends to insure, and shall report to that agent the existence of his arrangement or contract ²° with the contractor.

Employ- ment of agents by rhe Central Gbvern- merit.

Prohibiridu of certain. Insurance business.

Fcnooal Injuries (Compensa- tion intw- rancc; FunjI.

5 •£ i*ui.

463 G of I Ex.—2.

(4) If at any time the airuunt standing to the credit of the Fund exceeds the sum which, in the opinion of the Central Government, is likely to be required for the making of payments out of the Fund) the excess shall be disposed of in such manner as the Central Government may think fit.

5

(5) The Central Government shall prepare in such form and manner as may be prescribed and shall publish either annually or at such shorter intervals as may be specified therein, an account of all sums received into and paid out of the Fund.

CHAPTER IV

ib

MISCELLANEOUS

power of Central Government to obtain information.

14. (1) Any person authorised in this behalf by the Central Gov- t ernment may, for the purpose of ascertaining whether the require- ments of this Act and of the Scheme have been complied with, • require any employer to submit to him such accounts, books or other ^ documents or to furnish to him such information or to give such certificates as he may reasonably think necessary.

(2) Whoever wilfully obstructs any person in the exercise of his powtrs under this section or fails without reasonable excuse to com- ply with any request made thereunder shall, in respect of each occa- ²⁰ sion on which any such obstruction or failure takes place, be punish- able with fine which may extend to one thousand rupees,

(3) Whoever in purporting to comply with his obligations under this section knowingly or recklessly makes a statement false in a material particular shall be punishable with fine which may extend ²5 tp one thousand rupees.

Recovery of premium. unpaid.

; 15. (1) Without prejudice to the provisions of sub-section (2) of section 9, where any person has failed to insure as or to the full amount required by this Act and the Scheme and has thereby evaded the payment by way of premium of any money which he 3° would have had to pay in accordance with the provisions of the Scheme but for such failure, an officer authorised in this behalf by the Central Government, may determine the amount payment of which has been so evaded and the amount so determined shall be payable by such person and shall be recoverable from him as pro- 35 vided in sub-section (2).

(3) Any person against whom a determination is made under sub-section (1) may, within the prescribed period, appeal against such determination to the Central Government whose decision shall be final.

•ayment of .ompensa- Lon where n employer iaa failed to osure.

5 16. Where an employer has failed to take out a policy of insu- rance as required by sub-section (1) of section 9, or having taken out a policy of insurance as required by that sub-section, has failed to make the payments by way of premium thereon which are subse- quently due from him in accordance with the provisions of the 10 Scheme, payment of any compensation for the payment of which he is liable under this Act may be made out of the Fund, and the sum so paid together wilh a penalty of such amount not exceeding the sum so paid as may be determined by an'officer authorised in this behalf by the Central Government shall be recoverable from 15 the employer as an arrear of land-revenue for payment into the Fund.

Limitation nf prosecu- tions.

17. No prosecution for any offence punishable under this Act shall be instituted against any person except by or with the consent of the Central Government or an authority authorised in this behalf by the 20 Central Government.

Composition of offences.

18. Any offence punishable under sub-section (2) of section 9 may, either before or after the institution of the prosecution, be compounded by the Central Government or by any authority autho- rised in this behalf by the Central Government on payment for 25 credit to the Fund of such sum as the Central Government or such authority, as the case may be, thinks fit.

Power of magistrate tc impose any sentence.

5 of 1898.

19. Where any offence against this Act is tried by a Presidency Magistrate or a magistrate of the first class, then, notwithstanding anything contained in the Code of Criminal Procedure, 1898, the 30 magistrate trying the offence may pass any sentence authorised by this Act.

Bar of legal proceedings 20. (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act.

35 (2) No suit shall be maintainable in any civil court against the Central Government or a person acting as its agent under section 11 for the refund of any money paid or purporting to have been paic by way of premium on a policy of insurance taken out or purporting to have been taken out under this Act,

Power to exempt employers

21 Thi Central Government shall exempt any employer from the provriois oj this Act on \he employer's request, if satisfied that he li?" Vieforp thf comm^nci menf of this Act entered into a contract with insures substantially coveting the liabilities imposed on him by this Ani for so long as that contract continues 5

22 (1) The Central Government may by notification make rules Power to tnakc rules

to carry into effect the provisions of this Act

(2) Without prejudice to the generality of the foregoing power such rules may prescribe—

(a) the principles to be followed in aseei taming the total 10 wages bill of an employer, including provision for the exclusion iierefrom of certain categories of wages or of certain elements included in the definition of wages;

(l~>) the form of the policies oi insurance referred to in sub- section (2) of section 8,

Z5

(c) the period referred to in clause (g) of sub-section (5) nf pection 8;

(d) the date and the period referred to m sub-section (1) ni section 9,

(<;) the form of and thp manner of preparing and publish- *o ing the account referied to in sub-section (5) of section 13;

(f) the periods referred to m sub-section (3) of section 15,

(q) any other mattei which hai to be or may be prescribed

23 If any difficult} arr.es. in giving effect to the provisions of ²^ Pqwer to remove difficulties this, Act, ^nH in particular, if any doubt arisrei a3 to whether any compensation is payable undei tins Act or as to the amount thereof the Central Government ina\ bv order, make such provision or give such dii action, noi inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of 3U the doubt or difficulty; and the decision of the Central Government, in sach ro^es, shall be final

Scheme to be laid btforc botl Houses of Parliament

24 Eveiy Scheme and t-vuiy iule made under this Act, shall be laid, as seen pi may be after it is made, before each House of Parlia- ment while It is m session tor a total period of thirty days which 35 may be comprised m one session or in two or more successive ses- sionf., and if before ihe expnv of tho session in which it is so laid

or the successive sessions aforesaid, both Houses agree in making any modification in the Scheme or the rule or both Houses agree that the Scheme or the rule should not be made, tlv Scheme or the rule shall thereafter have effect only in such modified form or be 5 of no effect as the case may be; so, however, that any such modifi- cation or annulment shall be without prejudice to the validity of anything previously done under that Scheme or the rule-

THE SCHEDULE

[See sections 2 and 7(1)]

10

Percentage

of

Description of injury

disability

Upper Limb

1 00 Loss of both hands or of all fingers and thumbs

90 Amputation of Right arm through shoulder

Amputation of Left arm through shoulder . . ..

90

Amputation below shoulder s t u mp exceeding 6 inches from

tip of acromion (Right)

80

Amputation below shoulder stump not exceeding 6 inches

20

(Right)

90

Amputation below s h o u l i ei stump nut exceeding 6 inches

80 (Left)

Amputation below shoulder from tip of acromion stump ex-

ceeding 6 inches (Left) . . . . ..

70

Amputation through elbow or below elbow with stump not

"5

exceeding 5 inches (Right)

80

Amputation through elbow or below elbow with stump not

exceeding 5 inchas (Left) . . . . ..

70

Amputation below e l b iw stump exceeding 5 inches (Right) .

. 70

Amputation below elbow stump exceeding 5 inches (Left)

50 3°

Los* of t h u mb (Right) . . . . . ..

Percentage of

D e s c r i p t i o n l of i n j u ry

disability

40

L o ss of t h u mb ( L e f t) . . . . . ..

L o ss of 4 f i n g e rs ( R i g h t)

50

5

40

L o ss of 4 fingers ( L e f t) . , . . . .•

20

L o ss of 2 fingers on e i t h er h a nd

Lower Limb

1 00

Loss of 2 or more limbs

. . •

10

1 00

ArflDutation of both feet

.

Amputation of one leg at h ip or below h ip with s t u mp n ot

90

exceeding si inches

80

Lisfranc's Operation b o th feet .

80

Amputation below h ip with stump exceeding 5 inches .

15 Amputation through b o th feet proximal to t he metatarso-

80

phalangeal joint . . . . . . ..

Loss of all to~s of both feet through t he metatarso-phalangeal

40

joint . . . . . . . . ..

Loss of all toes of both feet proximal to t he proximal inter-

20 phalangeal joint? . . . . . ..

30

Loss of all toes of both feet distal to the proximal inter-

phalangeal joint

. . . . . ..

20

Amputation of leg below middle thigh t h r o u gh knee or below

knee with stump not exceeding 4 inches . . ..

70

25 Amputation of leg bslow knee with stump exceeding 4 inches

60

Lisfranc's amputation of one foot . . . ..

40

Amputation t h r o u gh one foot proximal to t he metatarso-

phalangeal joint . . . . . . ..

30

Loss of all toes of one foot proximal to t he proximal inter-

phalangeal joint including amputations t h r o u gh t he meta- tarso-phalangeal joint . , . . . .,

20

Description of injury

Percentige ] of

disability

Other Specific injury

1 00 5 Loss of hand and foot

Other disabilities

1 00 Very severe facial disfigurement

70 T o t al loss of speech

20 Io Limited restriction of movement of joint through injury without penetration, or limited function of limb through fracture, or compound fracture of t h u mb or 2 or more fingers of either hand with impaired function . . ..

Ankyloses in optimum position i.e., the position of greatest usefulness

Right

Ltfr

' Arm

4 0%

Shoulder . . .

Elbow . . . ..

40%

30%

2 0% Wrist

3°%

Leg

³⁰ H ip

60%

•

K n ee

40%

•

Ankle

30%

•

Defective vision

100%

Loss of sight . . . . ..

other eye being

²5 Loss of one eye without complications, the

normal . . . . ..

40%

or disfigurement,

Loss of vision of one eye with complications

th? other eye being normal

40%

or disfigurement,

Loss of vision of one eye without complications

30 the other eye being normal

3o%

Other degree of defective vision

obtainable

Assessment

Assess- ment

When best acuity is in

5

The other

One eye

Per cent.

Per cent.

When one eye removed—best obtainable acuity in re- maining eye, with or with- out glasses

is

10

15-19

I.

40

T. 6/6 '1 2. 6,9 V 3. 6 12J

20

2.

6/6 or 6/9 or

6/24 6/36 ~) 6/60 y 3/60J

30

30

4. 6/18

Nil

6/12

3-

6/18

*5 6/1S

5. 6 24

7*

15-19

A-

6. 6/36

Ko

30

6/18

6/24

5-

90

40

7. 6/60 \ 8. 3'60 /

6/18 6/18 6/18

6. 7- 8.

6/361 6/601 6/60 J

2*

Nil

6 18

50

9-

1 00 1 0.

9. Nil

6'24

6 24

30

40

I I.

6 36

6/24

5°

6/24 6/24

12. 13-

6/60 \ 3/6°/

70

²5

Nil

14.

6,24

50

6' 36

6/36

15-

fio

6/6O \ 3 •60/

6/36 6/36

16. 17.

Nil

18.

fo

6,36

3*

80

19. 20.

6/60 6/60

6/60I 3/60/

90

2 1.

Nil

6/60

2 2.

80

3'6o

3/6o

90

Nil

5'60

23.

1 00

Nil

Nil

24

35

Defective hearing

Assessment should be bused on the Gride attained using both ears to- gether ; the percentage assessment appropriate to the Grade thus attained is given in the last column.

5

Grade

Date of hearing attained

Assessment of both ears used together

i

Total deafness . . ..

80%

2

Shout not beyond 3 feet .

70%

Conversational voice not over 1 foot .

607,

3

10

Conversational voice not over 3 feet

4

40%

Conversational voice not over 6 fett .

2 0%

5

6

Conversational voice not over 9 feet—

20*/,

(a) one ear totally deaf .

(b) otherwise . . Less

than 20%

15 A case in which the right ear attained grade 4, the left ear grade 2 iau both ears together grade 3 should, therefore, be recorded thus:

R. 4 L2. R plus L3. Assessment 60 per cent.

The assessment given above take into account minor ailments mic * headache, vertigo tinnitus, sleeplessness, etc., which generally accompany 20 deafness,

453 G of I fix.—3.

STATEMENT OF OBJECTS AND REASONS

Under section 4 of the Personal Injuries (Emergency Provisions) Act, 1962, the liability of an employer to pay compensation for personal injuries (i.e. war injury) under the Workmen's Compensa- tion Act, 1923, or the Employees' State Insurance Act, 1948, has been removed- The present Bill seek;.—

(i) to impose on the employers oi workmen in factories, mines, major ports, plantations, essential services, etc., the liability] to pay compensation in respect of personal injuries to the extent the amount of compensation payable under the Workmen's Compensation Act, 1923, exceeds the amount of compensation payable under the Personal Injuries (Emergency Provisions) Act, 1962;

(ii) to provide for a scheme of insurance of the liability by the employers with Government based on premium rates which can be varied wiLh reference to the actual nature or extent of the liability as it may exist from time to time.

2. The Bill provides for payment of compensation on a uniform basis irrespective of the fact whether a workman is covered by the Workmen's Compensation Act, 1923 or the Employees' State Insurance Act, 1948, This has been considered necessary from the point of view of the practicability, equity and the fact that the quantum of benefits under the latter Act is not fixed automatically as in the case of the former Act.

3. The premium payable by employers for compulsory insurance will be collected at quarterly intervals as is being done under the Emergency Risks (Factories) Insurance Act, 1962.

4. Exemption from compulsory insurance is proposed to be granted tq small establishments whose total wages bill for any quarter is less than Rs. 1,500 because the cost of collecting the premium and the administrative charges in their case is likely to be out of proportion to the realisations made.

5. The various provisions of the Bill are explained in the notea on clauses.

NEW DELHI;

The 16th August, 1963. G. h. NANDA

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA

(Copy of letter No. S'l |6*2-(SP1., dated the 17th August, 19G3 from Shri C. R. Paitabhi Raman, Dypiuy Alinistu' oi Labour, Employment and Planning ^ !:o Sec vt^r--, Lok Sabha).

The President, having been informed of LII? subject matter uf the prop^s^J Bi¹! to inipos? on employers a liability to pay compensation to workmen sustaining personal injuries and to provide for the insu- rance of employers against such liability, has, in pursuance of clauses (1) and (3) of article 117 of the Constitution of India, rpeommenJf d to Lok Sabha the introduction and consideration of the Bill.

Notes on clauses

Clause L—This clause empowers the Central Government to enforce the statute) only when there is a possibility of civilian casualties due to external aggression.

Clause 2.—This clause clarifies that the expressions "gainfully occupied; person" and "personal injury" have the same meanings as in the Personal Injuries (Emergency Provisions) Act, 1962, and that the expression "employer" Includes a contractor.

Clause 3.—This clause enumerates the classes of workmen to whom the statute will be applicable.

Clause 4.—This clause imposes on employers the liability to pay compensation to the workmen to whom the Bill would apply for "personal injuries". It further provides that the employer's liability to pay compensation under the Bill would be discharged by the Central Government if the employer takes out a policy of Insurance as provided for in clause 9 and pays all premiums regularly. It further makes the Central Government and the State Governments liable to pay compensation for "personal injuries" sustained by their employees.

Clause 5.—-This clause provides that where any person Is entitled to the benefits of extraordinary pension, gratuity, etc., in respect of a personal injury under the conditions- of his service or otherwise, and the amount of such pension, gratuity, etc., is greater than the amount payable as compensation under the Bill then he shall be paid by the Government (as insurer) the amount of compensa- tion payable under the Bill and the difference shall be paid by the employer.

Clause 6.—This clause provides that ifl the amount of extra- ordinary pension, gratuity, etc., payable in respect of a personal (war) injury suffered by an employee of the Government is equal to or greater than the amount of compensation payable under the Bill, then, only the amount of extraordinary pension, gratuity, etc., shall be paid. But if the amount of such extraordinary pension! gratuity, etc., is less than the amount payable as compensation under the Bill, then, the amount payable as extraordinary pension, gratui- ty, etc., shall be paid in the first instance and thereafter a sum equal

to the difference be L ween the amount of such extraordinary pension, gratuity, etc., and the amount payable as compensation under the Bill shall be paid,

Clause 7.—This clause provides that the amount of compensa- tion for personal injuries shall be roughly equal to the difference between the amount of compensation payable under the Scheme framed under the Personal Injuries (Emergency Provisions) Act, 1962, and the amount oi compensation payable under the Workmen's Compensation Act, 1023.

Under the Workmen's Compensation Act, 1923, the monthly Wage limit for coverage is Rs. 500, and the rates of compensation are linked with wage-slabs. Workmen in the wage-slab Rs. 400*01— Rs. 500 are entitled to the maximum rates of compensation. As the Bill would cover workmen drawing monthly wages more than Rs. 500 also, provision has been made in clause 1(2) that in their case the maximum rates of compensation provided for in the Work- men's Compensation Act, 1923, for the workmen in the wage-^lab Rs. 400-01—Rs. 500 would be taken into account.

Clause 8.—This clause empowers the Central Government to make and put into operation a scheme undertaking, in relation to employers, the liability of insuring the employers against the liabilities incurred by them under the Bill. The Scheme may, inter alia, regulate the payment of compensation payable under the Bill and determine the value In lump sum of the periodic payments required to be mede Under the Scheme framed under the Personal Injuries (Emergency Provisions) Act, 1962. This is necessary leeeause the compensa+ion payable under the Workmen's Compensation Act, 1923, ha* been expressed in lump sum.

This clause also provides for the final assessment ©f the total premium after the period of the emergency in the light of the total liabilities- The employers may be required to make advance pay- ments, to be eventually adjusted against the final total premium, at quarterly intervals and at such rates as may be determined from time to time. The minimum amount of premium payable by the establishments whose quarterly wages bill is not less than Rs. 1,500 (cf. clause 9) has been fixed at Rs. 8 so that this is commensurate with the cost of collection and administrative charges.

Clause 9.—This clause makes it obligatory for every employer of workmen to whom the Bill applies, other than an employer whose total wages bill for any quarter is less than Rs. 1,500, to take out a policy of insurance in accordance with the Scheme framed under the Aot. The Government as an employer will not, however, be required to take out a policy of insurance.

Clause 10.—This clause provides that the liabilities of a contractor, whether he lends or lets on hire the services of workmen or executes any work for a principal employer, shall not be transferred to the principal employer. The principal employer will only be required to furnish necessary information to the Central Government or its agent regarding the terms of his arrangement or contract with the contractor. This clause also exempts a contractor from insuring against tho liabilities imposed by the Bill where the contract or arrangement is for a term of less than a month.

Clause 11.—This clause empowers the Central Government to appoint agents for any of the purposes of the Bill and to pay remune- ration to such agent.

Clcuse 12.—This clause prohibits private insurers from carrying on the business of insuring employers in India against the liabilities arising under the Bill.

Clause 13.—This clause provides for the establishment of a Perso- nal Injuries (Compensation Insurance) Fund, which is intended to" be self-sufficient. This clause, however, empowers the Central Gov-. ernment to make an advanceto the Fund, if it is temporarily in deficit, of any amount which may be needed for meeting the expendi- ture chargeable to the Fund. The intention is that the advance so made would be recouped from the future premium. This clause further provides that if there Is ultimately a surplus in the Fund after pro., viding for all the payments from the Fund, the excess shall bo disposed of in such manner as the Central Government may decide.

Clause 14.—This clause empowers the Central Government to

obtain such information or to carry out such inspections as may b"

necessary for enforcing the provisions of the Bill.

Clause 15.—This clause empowers the Central Government to recover unpaid premium as an arrear of land-revenue.

Clause 16.—This clause empowers the Central Government to pay compensation in the first instance from the Fund in cases where an employer has failed to insure or, having insured, has failed to pay premium and thereafter to recover the unpaid premium, together with a penalty, from the defaulting employer.

Clauses 17 to 20.—These clauses contain the usual provisions in regard to the limitation of prosecutions, the composition of offences, power of magistrate to impose any sentence, and bar of legal proceed- ings in respect t>f action taken in good faith under the relevant provisions of the Bill,

Clause 21.—This clause provides for the grant of exemption by the Central Government to employers from the provisions of the Bill if the employers have already insured against the liability im- posed by the Bill.

Clause 22.—This clause gives power to the Central Government to frame rules for the purpose of giving effect to the provisions of the Bill.

Clause 23.—This clause provides for the grant of power to the Central Government to remove difficulties, if any, in giving effect to the provisions of the Bill.

Clause 24.—This clause makes the usual provision for laying the

Scheme made under the Bill before both Houses of Parliament.

Schedule.—The Schedule contains a list of injuries which shall be deemed to result in permanent total disablement or permanent partial disablement, which will be compensated in accordance with paras. (b) and (c) of sub-clause (2) of clause 7.

FINANCIAL MEMORANDUM

Clause 13 of the Bill provides that a Personal Injuries (Compensa- tion Insurance) Fund will be established and that an amount not exceeding the amount of the premiums collected under the Scheme of Insurance will be paid into that Fund after due appropriation made by Parliament by law. The Fund will be utilised to pay sums required for the payment of compensation to workmen for personal injuries, for the remuneration or expenses of agents employed for operating the insurance Scheuie and for payment of the cost of admi- nistering the Scheme. The extent of liability to pay compensation •will depend upon the number of casualties amongst the workmen covered by the Bill. It is not possible to make any worthwhile esti- mate of the likely number of casualties as this depends upon ta very large number of uncertain factors. The number of workers that will be covered by the Scheme of insurance will be about 6 million. Assuming that compensation will be required to be paid to one per cent, of them and assuming that the amount of the compensation payable in respect of each person will be Rs. 3,000 on an average, the total liability would come to about Rs. 18 crores. The cost of pay- ments of the agent's charges and administrative charges may come to about Rs. 1 crore.

The Scheme of insurance, as a whole, provides for self-adjusting Income on revenue and expenditure basis. It is, therefore, expected that the Scheme may not involve any net burden on the Consolidated Fund of India over and above the obligation to transfer to the Insu- rance Fund from out of the Consolidated Fund, the premiums receiv- ed under the Scheme. The Central Government will, of course, have to make advances to the Fund when the amount standing at the credit of the Fund at any point of time, is not adequate to discharge the purposes of the Fund- This advance will be recouped from the Fund in due course.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 8 of the Bill empowers the Central Government to make and put into operation a Scheme to be called Personal Injuries (Com- pensation Insurance) Scheme, whereby provision is made for the insurance of employers against liabilities arising as a result of perso- nal injuries and other connected matters. Further clause 22 of the Bill provides for framing of rules by the Central Government to carry into effect the provisions of the Bill.

The matters in respect of which provision can be made in a Scheme or rules are generally matters of -procedure or detail. The delegation of power is, therefore, of a normal character.

M. N. KAUL,

Secretary.

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