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Charan (HR)     24 May 2010

Accident in the company cab


I want to know whether an employee is entitled to get the compensation for his permanent damages due to the accident in the company cab while returning to home from office. If yes, is there any maximum amount. I

Employee claims that permanent damages are causing difficulties in proffesional life as well as personal life.


 13 Replies

Sarjooram Sharma (Assistant Labour commissioner)     24 May 2010

In this case the injury may be treated to due accident arose out of employment and in course of employment.

1 Like

Charan (HR)     25 May 2010

The employee has brought a claim of around Rs 2 crores for his injuries. Is there any limit imposed to the claim for certain permanent scheduled & unscheduled injuries.

Few of the injuries in the claim is listed below.
1. Partial injury to the eye
2. Little impairment to speech
3. Little memory disorder
4. Scar in the face

& social embarrasment & consequential losses are also included the claim. Or, the compensation is only limited to his loss of earning capacity. 

Sarjooram Sharma (Assistant Labour commissioner)     25 May 2010

the compensation is given on the basis of loss of earning capacity. The formula is given in the Act on which basisthe compensation is calculated. Besides the compensation the claiment is also entitled for interest. Mental agony, social embarrasment etc - these hypothetical things are not covered under the Act.

1 Like

Charan (HR)     25 May 2010


Thank you for your quick & appropriate reply. The employee is currently employed in the same organization & is able to work.He claims that he is not efficient any more.

Moreover, most part of the claim consists of non-quantifiable things. He lost his driving ability, he experienced memory disorder due to head injury, he has a scar 12 centimetre long for which he is unable to get a resonable bride etc.

Also, he mentioned consequential losses like loss of oppurtunities, inability to switch jobs, inability to get additional life insurance due to permanent injury,loss of ambitions etc.

Please advise if the company is not liable for the damages. Please advise if civil law applies to above damages.


Vijayarajan (Executive Director)     26 May 2010

Under the provisions of WC Act, 1923 the employee is entitled to get a compensation to the extent of his disability caused by the accident. the calculation is as per the schedule of the act. To determine the amount the days spent in hospital total absence from duty due to accident the medical certificate the present wages age etc. will be considered. The case is to be filed before the Commissioner for WC.

1 Like

Charan (HR)     26 May 2010

Thank you all for the quick responses.


But, the employee wants to sue the employer for his permanent damages as mentioned above. The employee suffered head injury & it caused a big scar in the face. Due to the damage to a eye nerve, movement of his right pupil is restricted thereby causing double vision. This causes difficulty in reading, driving etc. Driving was banned for lifetime.


He is also experiencing some memory problems & speech problems due to the head injury. Overall his complete body was damaged to some extent due tothe head injury. The company paid all the medical expenses & continued the full salary during hospitalization but he feels some discrimination is going on against him.


His working efficiency is reduced  to an extent & in personal life he is experiencing myriads of problems. He wants to switch the job due to the difficulties. He works for a software MNC & wants to claim for Rs 2 crores. Is there any law under which he can claim for his losses? If yes, what is the procedure?

Sarjooram Sharma (Assistant Labour commissioner)     26 May 2010

The employee is entitled for compensation as per provisions of Employee's Compensation Act.

Charan (HR)     27 May 2010

Sir, thank you for your reply.

Do u mean to say that there is no provision in Indian law to compensate the employee for his damages as mentioned above?

radha krishna (vp-hr)     27 May 2010

Dear Sri Charan,

Employee is entitled for the followin claims:

1. Claim under Workmen's Compensation Act. Please pay through Workmen's Compensation Commissioner. If he has any views let him putforth before the Commissioner.Once th Commissioner passes order both parties will have right to appeal.

2. Claim under Motor Vehicle Accident. That he can pursue directly and company help him in obtaining the details of the insurence company, FIR report etc.,

3. If he is already insured under Group Personal Accident Policy.

But as an employer your liability is to pay compensation as directed by Commissioner under Workmen's Compensation Act.

B Radha krishna

Vijayarajan (Executive Director)     29 May 2010

Mr. Sharmaji, would you please furnish the details of Employees compensation Act stated in your reply. The distinction between the Workmens compensation act and employees compensation may kindly be briefed.Thank you,Vijayarajan

Sarjooram Sharma (Assistant Labour commissioner)     31 May 2010

Employees compensation act is amended act of workmen's compensation act 1923. This act has been published.

Charan (HR)     01 June 2010

Hi all,

We need a good lawyer in Hyderabad for the above case. Please guide us & I hope every suggestion will be trustworthy with an excellent history.

Vijayarajan (Executive Director)     03 June 2010

Mr. Sharmaji, I had checked on internet to get the details of EC act but failed. Would you please furnish the date of amendment or publication or any other details of the act. Regards, Vijayarajan.

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