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Can a workman claim compensation

Ashish Jain (.Net Developer) (641 Points)

14 May 2011

Can a workman claim compensation under the Workmen’s Compensation Act and ESI Act simultaneously in case of accident injury? Explain.

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 May 2011

Section 53 of the ESI Act reads as follows:

Bar against receiving or recovery of compensation or damages under any other law

"An insured person or his dependants shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act."

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 May 2011

Workmen's Compensation Act (to be renamed as Employees Compensation Act) is a legislation which directs the employer to pay compensation to employee who suffer injury while performing his regular nature of duty whereas by making coverage to the establishment the employer is shifting his obligation under the Workmen's Compensation Act to Employees State Insurance Corporation. In other words, the ESIC takes over the liability of the employer in respect of employees who meet with accidents during the course of employment. It is to be remembered that ESIC will not pay any compensation in respect of an employee who is not covered by ESI Act. Therefore, in respect of employees who are not covered by ESI the employer is still liable following the Workmen's Compensation Act. But in no case, the employee shall receive both benefits, ie, benefits as per Workmen's Compensation Act and benefits from ESI, at a time.