7. War Injuries Compensation Insurance Scheme.-
(1) The Central Government shall, by notification in the Official Gazette, put into operation a scheme to be called the War Injuries Compensation Insurance Scheme whereby provision is made for all matters necessary to give effect to the purposes of this Act and whereby the Central Government undertakes, in relation to employers of workmen 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 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-section (1), the Scheme may-
(a) make provisions regulating the payment of the compensation payable under this Act and the Scheme, including provision for punishment by fine not exceeding one thousand rupees for the contravention of any requirement of the Scheme;
(b) make provisions specifying the persons to whom and the proportions and manner in which payments under this Act shall be made;
(c) 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 issued under the Scheme that the payment of compensation in defiance of such specification is not covered by the policy;
(d) 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 under the War Injuries Ordinance, 1941 (7 of 1941), is withheld, cancelled, reduced or reviewed;
(e) 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;
(f) provide for the final assessment of the total premium due on a policy of insurance under the Scheme 1[either as the equivalent of all advance payments of premium already made by an employer, or as a percentage of the total wages bills of an employer for the periods with reference to which the amount of any advance payments made by him was fixed or] as a percentage of the total wages bill of an employer for a period of not less than twelve or more than fifteen months immediately preceding the termination of the present hostilities, and for the assessment of the total premium due on a policy which has ceased to be in force before the termination of the present hostilities owing to the employer having gone out of business;
(g) provide for the recovery from an employer of the total premium due on a policy of insurance including provision for its recovery by periodic advance payments of an amount based on a percentage of his total wages bill for any prescribed period, the separate funding of the payments so made by each employer, and the eventual adjustment of the total pre-mium as finally assessed against the total of such periodic payments: 1[Provided that, where the amount 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 1[further] that the first of such periodic payments shall 1[subject to the aforesaid minimum of eight rupee] be an amount representing not more than four annas per hundred rupees of the wages bill for the period by reference to which the amount of the payment is fixed: 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 1[subject to the aforesaid minimum of eight rupees] not be higher than the rate estimated to raise the amount in the Fund after repayment of the advances, if any, paid into the Fund by the Central Government under sub-section (2) of section 11, to a sum of rupees fifteen lakhs.
1. Ins. by the War Injuries (Compensation Insurance) Amendment Ordinance, 1944 (54 of 1944), s. 5.