Karnataka Workmen’s Compensation Rules, 1966

Background

The Karnataka Workmen’s Compensation Rules were framed under the authority of the Employee’s Compensation Act, 1923 (renamed as the Employees’ Compensation Act, 1923 after the 2009 amendment). The Act was enacted to provide financial protection to employees or their dependents in the event of injury, disability, or death caused due to accidents arising out of and in the course of employment. 

Applicability

These rules are applicable to all the employers which includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer and when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship means such other person while the workman is working for him as defined under the Employee’s Compensation Act, 1923

Compliance requirements under the Rules in accordance with Act

  • Form 1: Deposit of compensation for fatal accident in Karnataka (Section 8(1), Rule 6)

An employer depositing compensation with the Commissioner in respect of a workman whose injury has resulted in death shall furnish therewith a statement in Form 1, and shall be given a receipt in Form 3.

  • Form 2: Deposit for compensation – non-fatal accident to a woman/person under legal disability in Karnataka (Section 8(1), Rule 8)
    An employer depositing compensation to a woman or a person under a legal disability shall furnish a statement in Form 2 and shall be given a receipt in Form 3.
  • Form 4: Statement of disbursements in Karnataka (Section 8(4), Rule 6(2)(3))
    When depositing compensation in respect of fatal accidents, if the employer indicates in the statement that he desires to be made a party to the distribution proceedings, the Commissioner shall, before allotting the sum deposited as compensation, afford to the employer an opportunity of establishing that the person to whom he proposes to allot such sum is not a dependent of the deceased workman or, as the case may be, that no one of such persons is a dependent. The statement of disbursements to be furnished on application by the employer under sub-section (4) of section 8 shall be in Form 4.
  • Form 5: Deposit of compensation for non-fatal accident in Karnataka (Section 8(2), Rule 9)

An employer depositing compensation for non-fatal accident, other than to a woman or person under legal disability, shall furnish therewith a statement in Form 5 to the Commissioner and shall be given a receipt in Form 6.

  • Form 34: Statement regarding Fatal accident in Karnataka (Section 10A, Rule 12(i)(ii))

Where a Commissioner receives information from any source that an employee has died as a result of an accident arising out of and in the course of his employment, he may send by registered post a notice to the workman’s employer requiring him to submit, within thirty days of the service of the notice, a statement, in the prescribed form, giving the circumstances attending the death of the employee, and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death.

  •  Form 7: Report of Fatal accidents in Karnataka (Section 10B, Rule 12(iii))
    Where notice is required to be given to any authority, by or on behalf of an employer, of any accident occurring on his premises which results in death or serious bodily injury, the person required to give the notice shall, within seven days of the death or serious bodily injury, send a report to the Commissioner giving the circumstances attending the death or serious bodily injury in Form 7. “Serious bodily injury” means an injury which involves, or in all probability will involve the permanent loss of the use of, or permanent injury to, any limb, or the permanent loss of or injury to the sight or hearing, or the fracture of any limb, or the enforced absence of the injured person from work for a period exceeding twenty days.
  • Restriction on number of medical examination of an employee in Karnataka (Section 11, Rule 17, 18)

A workman who is in receipt of a half-monthly payment shall not be required to submit himself for medical examination elsewhere than at the place where he is residing for the time being more than twice in the first month following the accident, or more than once in any subsequent month.

  • Examination of Women in Karnataka (Rule 19)
    (1) No woman shall, without her consent, be medically examined by a male practitioner, save in the presence of another woman.
    (2) No woman shall be required to be medically examined by a male practitioner if she deposits a sum sufficient to cover the expenses of examination by a female practitioner.
  • Right of employer to present memorandum when information received in Karnataka (Rule 13)

(1) Any employer who has received information of an accident may at any time, notwithstanding the fact that no claim for compensation has been instituted in respect of such accident, present to the Commissioner a memorandum, supported by an affidavit made by himself or any person subordinate to him having knowledge of the facts stated in the memorandum, embodying the results of any investigations or inquiry which has been made into the circumstances or cause of the accident.

(2) A memorandum presented under sub-rule (1) shall, subject to the payment of such fee as may be prescribed, be recorded by the Commissioner.

  • Registration of agreement in Karnataka (Section 28, Rule 49)
    Where the amount of any lump sum payable as compensation has been settled by agreement, whether by way of redemption of a half-monthly payment or otherwise, or where any compensation has been so settled as being payable to a woman or a person under a legal disability, a memorandum thereof in duplicate shall be sent by the employer to the Commissioner and shall be in as close conformity as the circumstances of the case admit with Form 13 or Form 14 or Form 15, as the case may be.
  • Form 36: Display of abstract of the Act by the employers in Karnataka (Rule 79)
    The abstract of the Act required to be displayed in every factory shall be in Form No. 36.
  • Employer’s liability for compensation in Karnataka (Section 3)
    If personal injury is caused to an employee by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the Act, except where:

(a) The injury does not lead to total or partial disablement for a period exceeding three days; or

(b) The injury does not lead to death or permanent total disablement and is caused due to:

    • The employee being under the influence of drink or drugs;

    • Willful disobedience to an order or rule with respect to safety of employees;

    • Willful removal or disregard of a safety device.

  • Compensation where death due to injury in establishment in Karnataka (Section 4(1)(a))

Where death results from the injury, the amount of compensation shall be equal to 50% of the monthly wages of the deceased employee multiplied by the relevant factor, or ₹1,20,000, whichever is more.

  • Compensation where permanent total disablement results from the injury in Karnataka (Section 4(1)(b))

If permanent total disablement results from the injury, the compensation payable shall be 60% of the monthly wages of the injured employee multiplied by the relevant factor, or ₹1,40,000, whichever is more.

  • Compensation – Permanent partial disablement results from injury specified in Sch I-Part II – Karnataka (Section 4(1)(c)(i))

In case of an injury specified in Part II of Schedule I resulting in permanent partial disablement, the compensation shall be such percentage of the compensation payable for permanent total disablement as is specified in the Schedule as representing the percentage loss of earning capacity caused by the injury.

  • Compensation where permanent partial disablement result from injury not specified in Sch I – Karnataka (Section 4(1)(c)(ii))
    If the injury is not specified in Schedule I, the compensation shall be a percentage of the amount payable for permanent total disablement, proportionate to the loss of earning capacity as assessed by a qualified medical practitioner.
  • Compensation where temporary disablement, whether total or partial results from injury in Karnataka (Section 4(1)(d))
    Where temporary disablement results (total or partial), a half-monthly payment of 25% of the monthly wages is to be paid:
    (i) From the date of disablement where it lasts 28 days or more; or
    (ii) After a waiting period of 3 days, if the disablement is for less than 28 days.
    This payment continues during the period of disablement or up to 5 years, whichever is shorter.
  • Reimbursement of medical expenditure in Karnataka (Section 4(2A))
    The injured employee is entitled to reimbursement of actual medical expenses incurred for treatment of injuries caused during the course of employment.
  • Deposit towards funeral expenses in case of death in Karnataka (Section 4(4))
    In addition to compensation, the employer must deposit ₹2,500 with the Commissioner toward funeral expenses, which shall be paid to the eldest surviving dependent or the person who incurred such expenses.
  • Payment of compensation by employer in Karnataka (Section 4A)
    If the employer does not accept liability for the full compensation claimed, they must still make a provisional payment based on admitted liability, either directly to the employee or deposit it with the Commissioner. This is without prejudice to the employee’s right to claim further compensation.
  • Compensation in case of contract employees in Karnataka (Section 12(1))
    When an employer engages contract labour, and the contractor fails to pay compensation, the principal employer is liable as if the employee were directly employed. The employee may claim compensation directly from the principal employer.
  • Indemnification of Principal / Contractor in Karnataka (Section 12(2))
    A principal employer liable to pay compensation may seek indemnification from the contractor or other parties, and vice versa, if legally applicable. Disputes over such indemnity can be settled by the Commissioner if no agreement is reached.
  • Duty of employer to inform employee of his rights in Karnataka (Section 17A)
    Every employer must inform the employee of their rights under the Act, in writing and electronically, in English, Hindi, or the local language understood by the employee, at the time of employment.
  • Form 35: Maintenance of Notice Book in Karnataka (Section 10(3), Rule 78)
    Notice Books in Form 35 must be maintained in establishments with 1,000 or more workers, including Textile Mills, Jute Mills, Railway Workshops, and Distilleries, to record accidents and other notifiable events under the Act.

Penalties & Punishments

  • U/s 29: Where a memorandum of any agreement the registration of which is required by section 28, is not sent to the Commissioner as required by that
    section, the employer shall be liable to pay the full amount of compensation which he is liable to pay under the provisions of this Act, and notwithstanding an thing contained in the proviso to sub-section (1) of section 4, shall not, unless the Commissioner otherwise directs, be entitled to deduct more than half of any amount paid to the [employee] by way of compensation whether under the agreement or otherwise.
  • Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, Commissioner may direct to pay with arrears, interest @ 12% p.a. or such higher rate on amount due and where there is no justification for delay direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent. of such amount by way of penalty. The interest and the penalty shall be paid to the employee or his dependent, as the case may be.
  • U/s 18A: Whoever fails to maintain a notice-book which he is required to maintain under sub-section (3) of section 10 shall be punishable with fine
    [which shall not be less than fifty thousand rupees but which may extend to
    one lakh rupees].

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