Directorate of distance education master of business administration

The Workmen’ Compensation Act, 1923
The main objective of the Act is to ensure compensation to workers 
for accidents occurred during the course of employment. This Act 
covers workers employed in factories, mines, plantations, mechanically 
propelled vehicles, construction works, railways, ships, circus and other 

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hazardous occupations specified in schedule II of the Act. It does not 
apply to the Armed Forces, casual workers and workers covered by the 
Employee’s State Insurance Act 1948. 
The Act is administered by the State Government by appointing 
commissioners for this purpose under S.20 of the Act. 
Under this Act, compensation is payable by the employer to 
the workman for all personal injuries caused by industrial accidents 
which disable him / her for more than three days. In case of the death 
of workman, the compensation is paid to the dependants. The Act also 
specifies that in case a workman contracts any occupational disease, 
which is specified in its third schedule, such disease shall ordinarily 
be treated as an employment injury arising out of and in the course of 
employment. The scale of compensation is stated under the Act and the 
compensation is payable depending on the nature of injury and whether 
it is partial disablement or total disablement.