Statement of Object

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.

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