Section 3

Amendment status not verified — confirm the current text below against the official source.

Employer’s liability for compensation.— (1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter: Provided that the employer shall not be so liable — (a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding 1[three] days; (b) in respect of any 2[injury, not resulting in death 3[or permanent total disablement] caused by] an accident which is directly attributable to— (i) the workman having been at the time thereof under the influence of drink or drugs, or (ii) the wilful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or (iii) the wilful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman, 4[***].









































1 Subs. by Act 8 of 1959, sec. 3, for “seven” (w.e.f. 1-6-1959). 2 Subs. by Act 15 of 1933, sec. 3, fot “injury to a workman resulting from”. 3 Ins. by Act 30 of 1995, sec. 3 (w.e.f. 15-9-1995], 4 The word “or” omitted by Act 5 of 1929, sec. 2.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
1[***] 2[(2)If a workman employed in any employment specified in Part A of Schedule III contracts any disease specified therein as an occupational disease peculiar to that employment, or if a workman, whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months (which period shall not include a period of service under any other employer in the same kind of employment) in any employment specified in Part B of Schedule III, contracts any disease specified therein as an occupational disease peculiar to that employment, or if a workman whilst in the service of one or more employers in any employment specified in Part C of Schedule III for such continuous period as the Central Government may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the contrary is provided, the accident shall be deemed to have arisen out of, and in the course of, the employment: 3[Provided that if it is proved,— (a) that a workman whilst in the service of one or more employers in any employment specified in Part C of Schedule II has contracted a disease specified therein as an occupational disease peculiar to that employment during a continuous period which is less than the period specified under this sub-section for that employment; and (b) that the disease has arisen out of and in the course of the employment, the contracting of such disease shall be deemed to be an injury by accident within the meaning of this section: Provided further that if it is proved that a workman who having served under any employer in any employment specified in Part B of Schedule III or who having served under one or more employers in any employment specified in Part C of that Schedule, for a continuous period specified under this sub-section for that employment and he has after the cessation of such service contracted any disease specified in the said Part B or the said Part C, as the case may be, as an occupational disease peculiar to the employment and that such disease arose out of the employment, the









































1 Clause (c) omitted by Act 5 of 1929, sec. 2. 2 Subs. by Act 8 of 1959, sec. 3, for sub-sections (2) and (3) (w.e.f. 1-6-1959). 3 Ins. by Act 64 of 1962, sec. 3 (w.e.f. 1-2-1963).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964 contracting of the disease shall be deemed to be an injury by accident within the meaning of this section.] 1[(2A) If a workman employed in any employment specified in Part C of Schedule III contracts any occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by accident within the meaning of this section, and such employment was under more than one employer, all such employers shall be liable for the payment of the compensation in such proportion as the Commissioner may, in the circumstances, deem just.] (3) 2[The Central Government or the State Government], by notification in the Official Gazette, after giving, not less than three months’ notice of its intention so to do, may, by a like notification, add any description of employment to the employments specified in Schedule III and shall specify in the case of employments so added the diseases which shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively, and thereupon the provisions of sub-section (2) shall apply 3[in the case of a notification by the Central Government, within the territories to which this Act extends, or, in case of a notification by the State Government, within the State] 4[***] as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments.] (4) Save as provided by 5[sub-seclions (2), (2A)] and (3), no compensation shall be payable to a workman in respect of any disease unless the disease is 6[***] directly attributable to a specific injury by accident arising out of and in the course of his employment. (5) Nothing herein contained shall be deemed to confer any right to compensation on a workman in respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall be maintainable by a workman in any court of law in respect of any injury— (a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or









































1 Subs. by Act 64 of 1962, sec.3, for sub-section (2A) (w.e.f. 1-2-1963). 2 Subs. by Act 30 of 1995, sec. 3, for certain words (w.e.f. 15-9-1995). 3 Ins. by Act 30 of 1995, sec. 3 (w.e.f 15-9-1995). 4 Certain words omilted by Act 51 of 1970, sec. 2 and Sch. (w.e.l 1-9-1971). 5 Subs. by Act 8 of 1959, sec. 3, for “sub-section (2)” (w.e,f. 1-6-1959). 6 The words “solely and” omitted by Act 15 o/ 1933, sec. 3.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(b) if an agreement has been come to between the workman and his employer providing for the payment of compensation in respect of the injury in accordance with the provisions of this Act. Connection between accident and employment The deceased employee while travelling by public transport to his place of work met with a fatal accident. Nothing has been brought on record that the employee was not obliged to travel in any particular manner under the terms of the employment nor he was travelling in the official transport. Held, no casual connection between accident and employment could be established. Hence, the claimant is not entitled to any compensation; State Bank of India v. Vijay Laxmi, 1998 LLR 319. Death during the course of employment If the deceased employee met with his death while he was going to his place of work and the death has arisen during the course of employment, then the employer is liable for compensation; T.N.C.S. Corporation Ltd. v. s. Poomalai, 1995 LLR 63 (Mad): 1995 I LLJ HC MDS (378). Entitlement to claim compensation Where death was accelerated on account of stress and strain of the working condition, it is not necessary that there should be a direct connection between the cause of death and the nature of duties. Even if a casual connection between the two can be shown then the dependants of the deceased would be entitled to claim compensation from the employer; Divisional Personal Officer, Western Railway v. Asluya Segam, 1994 LLR 11 (Raj). Injury must be physical injury Injury sustained by a workman must be a physical injury on account of accident; Leela Devi v. Ramlal Rahu, 1990 LLR 213 (HP). Liability for compensation (i) In order to attract section 3 (1) of the Act, following three conditions must be fulfilled:— (a) personal injury; (b) accident; and (c) arising out of and in the course of employment; Kalayni P. v. Divisional Manager, Southern Railway (Personal Branch), Divisional Office, Madras, 2004 LLR 207 (Mad HC): 2004 1 LLJ 49. Case Law
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964 (ii) It is no doubt true that in order to succeed in an application for getting compensation under section 3 of the Act the following points are required to be established:— (1) that the accident must arise out of and in the course of the workman’s employment; (2) there must be causal connection between the injury and the accident and the work done in the course of the employment; (3) the workman has to say that while doing a part of his duty or incidental thereto it has resulted into an accident. It is necessary that the workman must be actually working at the time of the injury or the accident. Therefore, the three factors, that there must be injury, which must be caused in an accident, it must be caused in the course of and out of the employment must be established; Branch Manager, New India Assurance Co. Ltd. v. Siddappa, Major, 2004 LLR 731 (Kant HC). Meaning of the expression “arising out of employment” (i) The expression “arising out of employment” means that there must be casual relationship between the accident and the employment. If the accident has occurred on account of ihe risk which is an incident of employment, it has to be held that the accident has arisen out of the employment; Oriental Insurance Co. Lid. v. Nanguli Singh, 1995 LLJ HC ORS (298). (ii) The words “ouf of employment” is not limited to mere nature of the employment, but it (arising out of employment) applies to its nature, its conditions and obligations and its incidents. An accident which occurs on account of a risk, which is an incident of employment, then the claim for compensation can succeed provided the workman has not exposed himself to an added peril by his own imprudent act; Executive Engineer 19th Div. R.C.P., Bikancr v. Heeraram, 1982 (44) RR 179 Raj: 1980 Raj LW 412. 1[4. Amount of compensation.— (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:— (a) Where death results from the injury an amount equal to 2[fifty per cent.] of the monthly wages of the deceased workman multiplied by the relevant factor; or an amount of 1[2[eighty thousand rupees]], whichever is more;









































1 Subs, by Act 22 of 1984, sec. 3, for section 4 (w.e.f. 1-7-1984). 2 Subs, by Act 30 of 1995, sec. 4, for “forty per cent.” (w.e.f. 15-9-1995).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(b) Where total permanent disablement results from the injury an amount equal to 3[sixty per cent.] of the monthly wages of the injured workman multiplied by the relevant factor; or an amount of 4[5[ninety thousand rupees]], whichever is more; Explanation 1.—For the purposes of clause (a) and clause (b) “relevant factor” in relation to a workman means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the workman on his last birthday immediately preceding the date on which the compensation fell due. Explanation II.—Where the monthly wages of a workman exceed 6[four thousand rupees], his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be 7[four thousand rupees] only; (c) Where permanent partial disablement result from the injury (i) i n the case of an injury specified in Part II of Schedule 1, such percentage of the compensation which would have been payable in thecase of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and (ii) in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury; Explanation I.—Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries. Explanation II.—In assessing the loss of earning capacity for the purpose of sub-clause (ii), the qualified medical practitioner shall have due regard to the
















































































































1 Subs, by Act 30 of 1995, sec, 4, for “twenty thousand rupees” (w.e.f. 15-9-1995). 2 Subs, by Act 46 of 2000, sec. 3, for “fifty thousand rupees” (w.e.f. 8-12-2000). 3 Subs, by Act 30 1995, sec. 4, (or “fifty per cent.” (w.e.f. 15-9-1995). 4 Subs by Act 30 at 1995, sec. 4, for “twenty-four thousand rupees” (w.e.f. 15-9-1995). 5 Subs, by Acl 46 of 2000, sec. 3, for “sixty fhousand rupees” (w.e.f. 8-12-2000). 6 Subs, by Act 30 of 1995, sec. 4, for “one thousand rupees” fw.e.f, 15-9-1995) and again subs. by Act 46 of 2000, sec. 3, for “two thousand rupees” (w.e.f. 8-12-2000), 7 Subs, by Act 30 of 1995, sec. 4, for “one thousand rupees” fw.e.f, 15-9-1995) and again subs. by Act 46 of 2000, sec. 3, for “two thousand rupees” (w.e.f. 8-12-2000),
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964 percentages of loss of earning capacity in relation to different injuries specified in Schedule I; (d) Where temporary disablement whether totals or partial results from the injury a half monthly payment of the sum equivalent to twenty-five per cent of monthly wages of the workman, to be paid in accordance with the provisions of sub-section (2). 1[(1A) Notwithstanding anything contained in sub-section (l), while fixing the amount of compensation payable to a workman is respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such workman in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the workman in accordance with the law of that country.] (2) The half-monthly payment referred to in clause (d) of sub-section (I) shall be payable on the sixteenth day — (i) from the date of disablement where such disablement lasts for a period of twenty-eight days or more, or (ii) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than twenty- eight days; and thereafter half-monthly during the disablement or during a period of five years, whichever period is shorter: Provided that— (a) there shall be deducted from any lump sum or half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and (b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount of the monthly wages of the workman before the accident exceeds half the amount of such wages which he is earning after the accident.









































1 Ins. by Ac( 30 of 1995, sec. 4 (w.e.f. 15-9-1995).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
Explanation.—Any payment or allowance which the workman has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso. (3) On the ceasing of the disablement before the date on which any half-monthly payment falls due there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.] 1[(4) If the injury of the workman results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of 2[two thousand and five hundred rupees] for payment of the same to the eldest surviving dependant of the workman towards the expenditure of the funeral of such workman or where the workman did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure.] Assessment of loss of earning capacity by the qualified medical practitioner The incorporation of words “assessment of loss of earning capacity by the qualified medical practitioner” in section 4 (1) (c) (ii) have some purpose and it is not a case of ambiguity at all. So long as there is no provision which enables the Commissioner to determine the compensation ignoring the medical practitioner’s report, there is no question of avoiding it by Commissioner unless he wants a second report from the Medical Board; New India Assurance Co. Ltd. v. Sreedharan, 1995 LLR 376 (Ker). Interference by High Court The interference by High Court with the order of recall by Commissioner for Workmen’s Compensation on the ground of fraud by workman is unjustified both on fact and the law; Roshan Deen v. Preeti Lot, AIR 2002 SC 33. 3[4A. Compensation to be paid when due and penalty for default.— (1) Compensation under section 4 shall be paid as soon as it falls due.









































1 Ins. by Ac( 30 of 1995, sec. 4 (w.e.f. 15-9-1995). 2 Subs. by Act 46 of 2000, sec. 3, for “one thousand rupees” (w.e.f. 8-12-2000). 3 Ins. by Act 8 of 1959, sec. 5 (w.e.f. 1-6-1959). Case Law
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964 (2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of the workman to make any further claim. 1[(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall— (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due; and (b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears, and interest thereon pay a further sum not exceeding fifty per cent of such amount by way of penalty: Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed. Explanation.—For the purposes of this sub-section, “scheduled bank” means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). 2[(3A) The interest and the penalty payable under sub-section (3) shall be paid to the workman or his dependant, as the case may be.]] Defaulting employer to pay additional amount of compensation Sub-section (3) of section 4A read with clauses (a) and (b) thereof, makes it clear that additional amount of compensation can be levied against the defaulting employer by way of penalty if it is shown that there is no justification for the delay on his part in making good the compensation amount to the claimant; Ved Prakash Garg v, Premi Devi, JT 1997 (8) SC 229. Delayed payment or deposit of compensation entails interest as well as penalty









































1 Subs. by Act 30 of 1995, sec. 5, for sub-section (3) (w.e.f. 15-9-1995). 2 Subs. by Act 46 of 2000, sec. 4, for sub-section (3A) (w.e.f. 8-12-2000), Case Law
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
Delayed payment or deposit of compensalion entails interest @ 6 % p.a. as well as penalty not exceeding 50% of the amount; jayanti Lal & Co, v. Garesia Rajvirba, (1992) 1 Lab 1C 1225 (Guj). Payment of compensation either to the workman or to deposit it with the Commissioner Section 4A (2) makes it clear that, in the first place, the employer has to accept the extent of his liability for payment of compensation and on that basis he has to make payment either to the workman or to deposit with the Commissioner. The requirement of this sub-section is payment to the workman and not to any other person including his heirs and legal representatives. It takes within its sweep the case where the workman has not breathed his last on account of the accident met with by him in the course of his employment; Sumuben v. Patel Industries, 1994 LLR 338 (Guj). Sub-section (3) of section 4A is a beneficial provision It is apparent that sub-section (3) of section 4A is beneficial provision made for the benefit of the employee, having regard to the scheme of the Act, the provision for payment of interest and of penalty have been enacted with a view to deter the employer from taking pleas and avoiding payment of the compensation which becomes payable; Divisional Forest Officer v. Baijanti Bai, 1995 I LLJ MP (837), Sub-section (3) of section 4A is not applicable for fixing rate of interest in a claim under the Motor Vehicles Act. Section 4A(3) of the Workmen’s Compensation Act is not applicable in the matter of fixing rate of interest in a claim under the Motor Vehicles Act; Abati Bezbaruah v. Dy. Director General, GSl, (2003) 3 SCC 148.