Guidelines for Settlement of Claims for Compensation to Employee on accidents: DPE OM
No. A-42011/2/2018-Admn.
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No - 14, CGO Complex,
Lodhi Road, New Delhi-110003
Dated the 11 July, 2018
Office Memorandum
Subject :
Guidelines for Settlement of Claims for Compensation on accidents applicable to the Department of Public Enterprises Reg.
The
undersigned is directed to refer to above said subject and to say that
this Department has framed the guidelines for settlement of compensation
claims arising out of accidents resulting into loss of life or
permanent disability to a member of general public where the accidents
happens in any premises where any official activity of the Department is
being carried out of which a copy is enclosed herewith for information.
2. The guidelines has the approval of the competent authority.
Encl: As above
(Harish Chandra)
Under Secretary to the Govt. of India
GUIDELINES FOR SETTLEMENT OF CLAIMS FOR COMPENSATION ON ACCIDENTS APPLICABLE TO THE DEPARTMENT OF PUBLIC ENTERPRISES.
Preamble
Accidents
are unfortunate incidents, occurrences of which cannot be obliterated
completely, but can only be minimized by adopting most vigilant
practices, safety precautions etc. Sometimes accidents do happen when
responsibility and liability cannot be affixed on certain individuals or
malfunctioning of certain machinery and the Law recognizes the
Principle of 'No faulty Liability' for such unfortunate incidents. In
such cases, the loss of life and loss of dependency cost of the
dependents of such victims cannot be written off merely on the pretext
that negligence on the part of Department or its agencies cannot be
substantiated for want of stricter proofs particularly in a welfare
state like ours. Therefore, these guidelines have been framed.
1.
Title: These guidelines would be called as Guidelines for Settlement of Claims for Compensation.
2.
Effective date: The guidelines would be effective from 11.07.2018.
3.
Applicability:
These guidelines would govern the settlement of compensation claims
arising out of accidents resulting into loss of life or permanent
disability to a member of general public where the accident happens in
any premises where any official activity of the Department is being
carried out.
4.
Definitions:
- Accident:
Any death or permanent disability resulting solely and directly from any
unintended and unforeseen injurious occurrence caused during the
maintenance, Operation and provisioning of any public services
undertaken by the Department where no negligence can be proved on the
part of the Department.
- Competent Authority: Competent Authority means Secretary to Govt. of India in the Department of Public Enterprises.
- Department: Means Department of Public Enterprises.
- Dependent: As defined in the Employee's Compensation Act, 1923.
- Designated Officer:
An Officer designated by the Competent Authority of the level of Under
Secretary or equivalent for the purposes of receiving and processing
claims for compensation under the present Guidelines.
- Victim: Any person who suffers permanent disablement or dies in an accident as defined in these Guidelines.
- Permanent Disablement:
A disablement that is classified as a permanent total disablement under
the proviso to Section 2 (l) of The Employee's Compensation Act, 1923.
5.
Detailed Accident Report: The report prepared by the police within a period of 30 days from the date of incident as per Schedule 1 of these guidelines.
Explanation-
For the purposes of the preparation of the detailed accident report.
the word "injury" as referred in Schedule -I refers to "permanent
disability" as mentioned in clause 4(a) of the Guidelines.
6.
Extent of Liability: On
the occurrence of any "accident" as defined under these Guidelines, the
Department shall whether or not there has been any wrongful act,
neglect or default on its part and notwithstanding anything contained in
any other law, be liable to pay compensation to such extent as
prescribed below:
- In the event of death or permanent disability resulting from loss of both limbs: upto Rs. 10,00,000 (Rupees Ten Lakh).
- In the event of other permanent disability : upto Rs. 7,00,000/- (Rupees Seven Lakh).
However,
persons claiming compensation under these guidelines will not claim
additional compensation from the Department under any other regulation
or statute either directly or through a court of law. The claimant shall
submit an undertaking to this effect before availing the compensation
under these guidelines.
7. Procedure for settlement of claims in respect of compensation
a.
The victim or his/her dependent would make an application within a
period of 90 days of the accident to the Designated Officer under whose
jurisdiction the accident had occurred. The application should be
accompanied by the following documents:
- (i) Proof of age of the victim.
- (ii) Death certificate of the victim
OR
Permanent disability certificate issued by the Medical Board authorized by the Government.
- (iii) Certified copy of FIR lodged in respect of the accident.
- (iv) Proof of applicant's relation with the victim/ Dependency Certificate.
b. The Designated Officer may seek any further documents for settlement of claim to its satisfaction.
Provided
that where there are more than one dependent, the Applicant must
mention their name, addresses and relations with the victim and the
Designated Officer may at its own discretion issue notices to all before
releasing the compensation.
c. The Designated Officer on receipt
of above application shall take into consideration the Detailed Accident
Report submitted by the Police Authority would process the claim of
compensation on priority basis but would not normally take more than 30
days for seeking the orders of the competent authority in any case.
d.
The Designated Officer, in case where no application is received from
the victim/dependents of victims, may on receipt of the detailed
accident report proceed suo-moto to initiate the process for
consideration for grant of the compensation to the victim/dependents of
victim. The payment of compensation whether fully in cash or partly in
cash and partly towards reimbursement of medical expenses shall be
decided by the sanctioning authority.
e. With effect from the date
of the present Guidelines, all contract & agreements to be entered
into by the Department with any person or agency for maintenance,
operation and provisioning of public service would invariably include a
clause whereby any compensation paid under these guidelines shall be
recoverable from such person. agency or firm.
f. In no case a
claim for appointment of any of the dependents on the compassionate
grounds would be entertained by the Department.
8. Method of Disbursement of compensation.
i.
The amount of compensation so awarded shall be deposited in a
Nationalized bank or if the branch of a Nationalized Bank is not in
existence, it shall be deposited in the branch of a scheduled commercial
bank, in the joint or single name of the victim/dependents (5). Out of
the amount so deposited, 75% (seventy five percent) of the same shall be
put in a fixed deposit for a minimum period of one year and the
remaining 25% (twenty five percent) shall be available for utilization
and initial expenses by the victim/dependent(s) as the case may be.
Provided that in exceptional cases, amounts may be withdrawn before one
year for Domestic need/marriage in family/ educational or medical needs
of the beneficiary at the discretion of the Department.
ii.
In the case of a minor, 75% of the amount of compensation so awarded
shall be deposited in the fixed deposit account and shall be drawn only
on attainment of the age of majority. but not before one year of the
deposit provided that in exceptional cases. amounts may be withdrawn for
educational or medical needs of the beneficiary at the discretion of
the Department.
iii. The interest on the
sum shall be credited directly by the bank in the savings account of the
victim/dependent(s) on monthly basis.
Source:
dpe.gov.in
