Compensation entitled under workmen compensation policy

The workmen compensation need to be paid through the competent authority ie., the Dy commissioner labour and they only will confirm the compensation amount otherwise after taking money they may approach the authorities then it will be difficult for you to  manage.

Regards - kamesh

Dear sir,

As per the Employees Compensation act, in case the employee is drawing monthly wages more than Rs 4000/- it will be deemed as Rs 8000/- for the purpose of calculating compensation.  The compensation is to be calculated as in case of death of a workman resulting from injury  an amount equal to 50% of the monthly wages of the deceased workman multiplied by the relevant factor ( in this case, the relevant factor is 159.80) or Rs 1,20,000 whichever is more. This amount is to be deposited with the compensation commissioner within one month.  In case of default by employer 50% of the compensation amount plus interest to be paid to the employee or his dependants as the case may be.

thanks members. In this case, the monthly salary is rs.10000/-. SO for computing compensation it should be taken as 4000 ?.  With the relevant factor of 159.80, his compensation works out to 4000 x 159.8 = 6,39,200/-  Is this calculation correct.?

Secondly, other perks/facilities, like free conveyance, bonus, etc. are considered in wages for calculating compensation?

regds

Is the employee covered by the ESI. In such case, the compensation is governed by the ESI ACt and regulations

No sir, he is not covered under ESI Act.  Only Workmen COmpensation Act.

According to your statement, the contractor has obtained a workmmen's  compensation policy. Therefore the liabilioty to pay compensation is now lies with the insuarnce company in accordance with the provisions of the Employees' Compensation Act. You ask the contractor notify the fatal accident to the Employees' Compensation Commissioner within 7 days of the accident resulting in fatal accident under copy to the insuarnce company who has issued the polkicy and to you (Principal Employer) . If you have submited any accident report under Fcatories Act, a copy of the same may be sent to Employees' Compensation Commissioner with a covering letter by the contractor . Help the contractor to discuss with the insuarnce company to deposit the amount of compensation with the Employees' Compensation Commissioner within one month from the date of the accident.  

The relevant wage or 8000 divided by 26 whichever is higher is to be taken as wage in the first place

multiply the so arrived by relevant factor and calculate 50 % in the event of death is the compensaion to be paid