Union of India - Act
The Personal Injuries (Compensation Insurance) Act, 1963
UNION OF INDIA
India
India
The Personal Injuries (Compensation Insurance) Act, 1963
Act 37 of 1963
- Published on 8 October 1963
- Commenced on 8 October 1963
- [This is the version of this document from 8 October 1963.]
- [Note: The original publication document is not available and this content could not be verified.]
19.
/849Statement 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 Compensation Act, 1923, or the Employees' State Insurance Act, 1948, has been removed. The present Bill seeks-(i) to impose on the employers of 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 with 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 to 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 notes on clauses.Amendment Act 75 of 1971-Statement of Objects and Reasons.-The Personal Injuries (Compensation Insurance) Act, 1963, was enacted during the last emergency in order to provide for payment of compensation to certain classes of workers like workers in factories, mines, plantations and major ports for personal injuries (i.e., war injuries) in addition to the relief provided under the Personal Injuries (Emergency Provision--) Act, 1962, that the total benefit received will be about the same as under the Workmen's Compensation Act, 1923. The liability to pay compensation under the Workmen's Compensation Act, 1923, and the Employees' State Insurance Act, 1948, ceases to exist in the case of such injuries and the workmen covered by these Acts draw relief under the Personal' Injuries (Emergency Provisions) Act, 1962, supplemented by compensation under the Personal Injuries (Compensation Insurance) Act, 1963.2. The Personal Injuries (Compensation Insurance) Act, 1963,(i) imposes on the employers of workmen 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 relief payable under the Personal Injuries (Emergency Provisions) Act, 1962; and(ii) provides fot a scheme of insurance of the liability by the employers with Government based on premium rates which can be varied with reference to the actual nature or extent of the liability as it may exist from time to time.3. The Personal Injuries (Compensation Insurance) Act, 1963, is still in force but is related to the last period of emergency. The Bill seeks to extend the Act to the present emergency. It empowers the Central Government to formulate a different scheme to cover the claims during the present emergency. Provision has also been made in the Bill to ensure that the validity of the claims allowed during the last emergency is not affected by the amendments to the Act.[8th October, 1963]An Act 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:-| Brought into force on 1.11.1965. |
Chapter I
Preliminary
1. Short title, extent and commencement .-(1) This Act may be called The Personal Injuries (Compensation Insurance) Act, 1963.
2. Definitions .-In this Act, unless the context otherwise requires,-
Chapter II
Compensation Payable Under The Act
3. Workmen to whom the Act applies .-The workmen to whom this Act applies are-
4. Compensation payable under the Act, by whom and how payable .-(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 provided under the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962), of the amount and kind provided by section 7:
Provided that where an employer has taken out a policy of insurance, as required by sub-section (1) of section 9, and has made all payments by way of premium thereon which are subsequently due from him in accordance with the provisions of the Scheme or where by the provisions of sub-section (1) of section 9 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.5. Limitation on right to receive compensation otherwise than under this Act and Act 59 of 1962.-Where any person has a right apart from the provisions of this Act and of the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962), to receive compensation (whether in the form of gratuity, pension, compassionate payment or otherwise) or damages from an employer in respect of a personal injury in respect of which compensation 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. Special provisions in relation to employees of Government .-Where any person in the employ of Government has under 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 (59 of 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 compensation is payable under this Act, then, notwithstanding anything contained in this Act or the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 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 the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962), then, he shall have a further right to receive an amount equal to the difference between the sum admissible under those rules and the amount of compensation payable under this Act.
7. Amount of compensation .-(1) The compensation payable under this Act shall be as follows:-
(a)where death results from the injury, the amount payable in a like case under the Workmen's Compensation Act, 1923 (8 of 1923), reduced by the value in lump sum of the amount payable under the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962);(b)where permanent total disablement results from the injury, the amount payable in a like case under the Workmen's Compensation Act, 1923 (8 of 1923), reduced by the value in lump sum of the amount payable under the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 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 been payable in the case of permanent total disablement as is specified therein as being the percentage of disablement;(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 authority acting under the Scheme made under the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962), to be of corresponding degree;(iii)where more injuries than one are sustained-the aggregate of the compensation payable in respect of those injuries, so, however, as not to exceed in any case the compensation which would have been payable if permanent total disability had resulted from the injuries;(d)where temporary disablement, whether total or partial, results from the injury, the half-monthly payments payable in a like case under the Workmen's Compensation Act, 1923 (8 of 1923), reduced in each case, so long as he receives any payment under the Scheme made under the Personal Injuries (Emergency Provisions) Act, 1962 (59 of 1962), by the amount payable under the said Scheme.Chapter III
Personal Injuries (Compensation Insurance) Scheme
8. Personal Injuries (Compensation Insurance) Scheme .-(1) The Central Government shall, by notification put into operation a [Scheme] to be called the Personal 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:
[Provided that different Schemes shall be put into operation in relation to different periods of emergency.]9. Compulsory Insurance .-(1) Every employer of workmen to whom this Act applies or 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 a policy of insurance issued in accordance with the Scheme, whereby 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 section applies, against all liabilities imposed on him by this Act.
10. Principals and contractors .-(1) Where a person (in this section referred to as the principal) uses, in the course of or for the purposes of his trade or business, the services of workmen temporarily lent or let on hire to him 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 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 with the contractor.
11. Employment of agents by the Central Government .-The Central Government may by [notification] employ or authorise the employment of any person to act as its agent for any of the purposes of this Act and to pay to the person so employed such remuneration as it may think fit.
12. Prohibition of certain insurance business .-(1) After the date on which the Scheme is put into operation, no person shall, except as a person authorised by the Central Government as its agent to issue policies in pursuance of the Scheme, carry on the business of insuring employers in India against the liabilities for insurance against which the Scheme provides.
13. Personal Injuries (Compensation Insurance) Fund .-(1) The Central Government may, after due appropriation made by Parliament by law in this behalf, transfer in each financial year to a Fund to be called the Personal Injuries (Compensation Insurance) Fund (hereinafter referred to as the "Fund") such sums, as may be considered necessary, not exceeding the sums received by the Central Government by way of insurance premiums under the Scheme, or by way of payments made on composition of offences under section 18 or by way of expenses or compensation awarded by a Court under section 545 of the [Code of Criminal Procedure, 1898 (5 of 1898)], out of any fine imposed in any prosecution under this Act or by way of penalties imposed under the Scheme.
Chapter IV
Miscellaneous
14. Power of Central Government to obtain information .-(1) Any person authorised in this behalf by the Central Government may, for the purpose of ascertaining whether the requirements 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.
15. Recovery of premium unpaid .-(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 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 provided in sub-section (2).
16. Payment of compensation where an employer has failed to insure .-Where an employer has failed to take out a policy of insurance 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 subsequently due from him in accordance with the provisions of the 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 with 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 the employer as an arrear of land revenue for payment into the Fund.
17. Limitation of prosecution .-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 Central Government.
18. Composition of offences .-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 authorised in this behalf by the Central Government on payment for credit to the fund of such sum as the Central Government or such authority, as the case may be, thinks fit.
19. Power of Magistrate to impose any sentence .-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 (5 of 1898)], the Magistrate trying the offence may pass any sentence authorised by this Act.
20. Bar of legal proceedings .-(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.
21. Power to exempt employers .-The Central Government shall exempt any employer from the provisions of this Act on the employer's request, if satisfied that he has before the commencement of this Act entered into a contract with insurers substantially covering the liabilities imposed on him by this Act, for so long as that contract continues.
22. Power to make rules .-(1) The Central Government may, by notification, make [rules] to carry into effect the provisions of this Act.
23. Power to remove difficulties .-If any difficulty arises in giving effect to the provisions of this Act, and in particular, if any doubt, arises as to whether any compensation is payable under this Act or as to the amount thereof the Central Government may, by order, make such provision or give such direction, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of the doubt or difficulty, and the decision of the Central Government, in such cases, shall be final.
24. [Every scheme and rule to be laid before Parliament]
.-Every Scheme and every rule made under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the 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, the Scheme or the rule shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification 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)]| Description of injury | Percentage of disablement |
| Upper Limb | |
| Loss of both hands or of all fingers and thumbs | 100 |
| Amputation of Right arm through shoulder | 90 |
| Amputation of Left arm through shoulder | 90 |
| Amputation below shoulder stump exceeding 6 inches from tip of acromion (Right) | 80 |
| Amputation below shoulder stump not exceeding 6 inches (Right) | 90 |
| Amputation below shoulder stump not exceeding 6 inches (Left) | 80 |
| Amputation below shoulder from tip of acromion stump exceeding 6 inches (Left) | 70 |
| Amputation through elbow or below elbow with stump not exceeding 5 inches (Right) | 80 |
| Amputation through elbow or below elbow with stump not exceeding 5 inches(Left) | 70 |
| Amputation below elbow stump exceeding 5 inches (Right) | 70 |
| Amputation below elbow stump exceeding 5 inches (Left) | 50 |
| Loss of thumb (Right) | 50 |
| Loss of thumb (Left) | 40 |
| Loss of 4 fingers (Right) | 50 |
| Loss of 4 fingers (Left) | 40 |
| Loss of 2 fingers on either hand | 20 |
| Lower Limb | |
| Loss of 2 or more limbs | 100 |
| Amputation of both feet | 100 |
| Amputation of one leg at hip or below hip with stump not exceeding 5 inches | 90 |
| Lisfranc's Operation both feet | 80 |
| Amputation below hip with stump exceeding 5 inches | 80 |
| Amputation through both feet proximal to the metatarso-phalangeal joint | 80 |
| Loss of all toes of both feet through the metatarso-phalangeal joint | 40 |
| Loss of all toes of both feet proximal to the proximal inter-phalangeal joints | 30 |
| Loss of all toes of both feet distal to the proximal inter-phalangeal joint | 20 |
| Amputation of leg below middle thigh through knee or below knee with stump not exceeding 4 inches | 70 |
| Amputation of leg below knee with stump exceeding 4 inches | 60 |
| Lisfranc's amputation of one foot | 40 |
| Amputation through one foot proximal to the metatarso-phalangeal joint | 30 |
| Loss of all toes of one foot proximal to the proximalinter-phalangeal joint including amputations through the metatarso-phalangeal joint | 20 |
| Other Specific injury | |
| Loss of hand and foot | 100 |
| Other disablements | |
| Very severe facial disfigurement | 100 |
| Total loss of speech | 70 |
| Limited restriction of movement of joint through injury without penetration, or limited function of limb through fracture, or compound fracture of thumb or 2 or more fingers of either hand with impaired function | 20 |
| Right | Left | |
| Arm | ||
| Shoulder | 40% | 30% |
| Elbow | 40% | 30% |
| Wrist | 30% | 20% |
| Leg | ||
| Hip | 60% | |
| Knee | 40% | |
| Ankle | 30% | |
| DEFECTIVE VISION | ||
| Loss of sight | 00% | |
| Loss of one eye without complications, the other eye being normal | 40% | |
| Loss of vision of one eye with complications or disfigurement, the other eye being normal | 40% | |
| Loss of vision of one eye without complications or disfigurement, the other eye being normal | 30% |
| When best obtainable acuity is in | Assessment Per cent. | When one eye removed-best obtainable acuity in remaining eye, with or without glasses, is | Assessment Per cent | |||
| One eye | The other | |||||
| 1. | 6/6 | 6/24 | 15.19 | 1. | 6/6 | 40 |
| Or | 6/36 | 20 | 2. | 6/9 | 40 | |
| 2. | 6/9 | 6/60 | 20 | 3. | 6/12 | 40 |
| Or | 8/60 | 20 | ||||
| 3. | 6/12 | Nil | 30 | 4. | 6/18 | 50 |
| 4. | 6/18 | 6/18 | 15.19 | 5. | 6/24 | 70 |
| 5. | 6/18 | 6/24 | 30 | 6. | 6/36 | 80 |
| 6. | 6/18 | 6/36 | 40 | |||
| 7. | 6/18 | 6/60 | 40 | 7. | 6/60 | 90 |
| 8. | 6/18 | 6/60 | 40 | 8. | 3/60 | 90 |
| 9. | 6/18 | Nil | 50 | |||
| 10. | 6/24 | 6/24 | 30 | 9. | Nil | 100 |
| 11. | 6/24 | 6/36 | 40 | |||
| 12. | 6/24 | 6/60 | 50 | |||
| 13. | 6/24 | 3/60] | 50 | |||
| 14. | 6/24 | Nil | 70 | |||
| 15. | 6/36 | 6/36 | 50 | |||
| 16. | 6/36 | 6/60 | 60 | |||
| 17. | 6/36 | 3/60 | 60 | |||
| 18. | 6/36 | Nil | 80 | |||
| 19. | 6/60 | 6/60 | 80 | |||
| 20. | 6/60 | 3/60 | 80 | |||
| 21. | 6/60 | Nil | 90 | |||
| 22. | 3/60 | 3/60 | 80 | |||
| 23. | 5/60 | Nil | 90 | |||
| 24. | Nil | Nil | 100 |
| Grade of hearing attained | Assessment of both ears used together |
| 1. Total deafness | 80% |
| 2. Shout not beyond 3 feet | 70% |
| 3. Conversational voice not over 1foot | 60% |
| 4. Conversational voice not over 3 feet | 40% |
| 5. Conversational voice not over 6 feet | 20% |
| 6. Conversational voice not over 9 feet - | |
| (a)one car totally deaf | 20% |
| (b) otherwise | Less than 20% |