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Report No. 62

3.49. Section 4(1)-General scheme as to compensation.-

We now proceed to a consideration of the general scheme of compensation. The amount of compensation under sub-section (1) of section 4-which is one of the longest sub¬sections in the Act-depends on a number of factors. There is of course a common element of gradation namely the amount of, monthly wages; the amount recoverable in respect of an injury (whatever its nature) is linked up with the amount of monthly wages of the particular worker. This part of the scheme is to be ascertained from the Fourth Schedule to the Act. In addition, the amount of compensation varies according as the injury has resulted in (i) death (ii) permanent total disablement (iii) permanent partial disablement or (iv) temporary disablement.

In the case of permanent partial disablement, again there is a distinction between an injury specified in Part II of the First Schedule and an injury not so specified. If the injury is so specified, the percentage of compensation is laid down by the Schedule itself while if the injury is not specified, the percentage is not so laid down but is proportionate to the loss of earning capacity permanently caused by the injury. This might be explained more elaborately. In the case of death, a specified amount mentioned in the Fourth Schedule is to be paid and in the case of permanent total disablement also, a specified amount mentioned in the Fourth Schedule is to be paid. No other complications enter here.

But in the case of a permanent partial disablement, the amount specified for permanent total disablement is first to be taken into account and then a percentage is to be applied thereto. The percentage given in the Schedule as appropriate to the particular kind of injury is to be applied for this purpose. In other words, the amount specified in respect of permanent total disablement is to be reduced to that percentage. In the case of certain injuries however no such statutory percentage is laid , down and the appropriate percentage has to be arrived at on the facts of each case. In the case of temporary disablement whether total or partial the amount specified in the Fourth Schedule is to be paid as a half monthly payment.

3.50. The provisions as to compensation might appear to be somewhat complicated but the complexity seems to be unavoidable. From the layman's point of view, structural improvements could be suggested only in1 clause (d) of section 4(1) relating to temporary disablement.

1. See discussion relating to section 4(1)(d), para. 3.51, infra.

Workmens Compensation Act, 1923 Back

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