The Compensation System for Occupational diseases and injuries is the most vital
- component of any Social Security Scheme for the working class. This chapter concentrates on the procedure and adequacy of compensation awarded to the laboring population in Faridabad
- The Workmen’s Compensation Act (WCA) provided for a one-time lump-sum compensation to be given by the principal employer to the employee in case of disability or death due to an injury or disease sustained at the workplace
- This was replaced by the ESI Act 1948, in areas and industrial units notified by the State Governments
- The ESI Act provides for compensation in the form of periodic payments in case of Employment Injury or death due to an occupational accident
The disablement benefit is of two types viz Temporary and Permanent.
- Temporary disablement is defined as a condition resulting from an employment injury that renders an employee temporarily incapable of doing work. The compensation awarded during this period is technically termed Temporary Disablement Benefit (TDB).
- Permanent disablement is of two types viz partial or total. Permanent partial disablement is defined as such disablement of a permanent nature that reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement.
- Permanent total disablement is defined as disablement of a permanent nature that incapacitates an employee for all work which he was capable of performing at the time of the accident reSUlting in such disablement.
The present rates of TDB are given in Appx 2. The PDB rate is decided after the medical board, constituted by the ESIS, fixes a percentage of “loss of earning capacity”
after examining the worker and perusing his medical record. Thus, if the medical board records the loss of earning capacity as 50%, the worker will get 50% of the TDB rate . Both the TDB and the PDB are given in the form of periodic monthly payments.
In 1989, a provision has been inserted in the Act for providing lump sum PDB payment to workers, subject to the fact that the lump sum PDB does not exceed Rs 10,000 at the time of commencement of final award of his permanent disability.
The ESI Local Office Manual describes the guidelines to be followed for making such payments.
Accordingly, the ESIS has Regional Offices (functioning directly under the National office located in New Delhi) in all States, headed by an officer of the rank of Regional Director.
These Regional offices are responsible for organising disbursement of all cash benefits in the State. They have Local Offices at various industrial areas to assist them in the discharge of their functions. Local Offices are headed by officers of the rank of Manager.
Whenever, a worker sustains an Employment Injury, the employer is bound by law to inform the dependent Local Office and ESI dispensary. The LO Manager carries out Investigation and confirms that the worker has sustained an Employment Injury.
The worker is then given TDB based on certification by the dispensary doctor. This payment continues till the injury stabilises. After stabilisation, the worker is examined by an ESI Medical Board, which decides his “loss of earning capacity”. He accordingly gets PDB.
the event of death due to Employment injury, the dependents are advised to apply for Dependent Benefit, which is sanctioned by the RO.
- In case a worker or dependent is aggrieved by any of the above decisions, he can appeal before a Medical Tribunal/ Employees Insurance (EI) Court.
- This procedure is discussed in detail in Chapter VI.
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