Work Injury Benefits

Disability / Work Injury Benefit

Work injuries are divided into four categories: (i) permanent total incapacity (ii) permanent partial incapacity (iii) temporary incapacity and (iv) fatal injury leading to death of a worker.

In the case of permanent total incapacity/disability, 90% of an insured worker's average earning is paid as the amount of compensation. These benefits are paid for the duration of disability.

In the case of permanent partial disability, amount of compensation depends on the assessed degree of disability.

In the case of temporary disability, 90% of an insured worker's average earning is paid as the amount of compensation. The benefits are paid until worker's full recovery.

In the case of fatal injury, dependents (including widow, widower, children, parents, grandparents) receive survivors' benefit. Widow receives 60% of the disability pension the deceased worker received or would have been entitled to receive and an orphan, younger than age 25, receives 40% of total disability pension. The minimum monthly benefit is 1200 rupees per family. A funeral grant (lump sum of up to 10,000 rupees) for the cost of the funeral is paid to the oldest member of the fam­ily or to the person who pays for the funeral.

In line with a 2017 amendment in the Employee Compensation Act 1923, employers are required to inform the employees of their rights to compensation under the Act, in writing as well as through electronic means, in English or Hindi or in the official language of the area of employment, as may be understood by the employee. If an employer fails to inform the employee of his compensation rights under the law, he is liable to a fine which may range between 50,000-100,000 Indian rupees.

Source: §46 of the Employees State Insurance Act 1948, ISSA Country Profile for India


Non-Standard Workers' Rights on Work Injury Benefits - Platform workers

The currently applicable law "Employees Compensation Act 1923" is not applicable to the platform workers. Among other laws, the Government of India is planning to replace the 1923 Act and some other laws with a simplified OSH and Working Conditions Code. The draft OSH Code defines an employee "in respect of an establishment, a person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment to do any skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied". The draft law further says that a person can be declared to be an employee by the appropriate Government.

The central or state governments may declare platform workers as employees for the purposes of this legislation and hence grant them all rights as are applicable to other workers. Self-employed workers are not covered under the currently applicable legislation.

The Injury Protection system is offered by Uber in India both to the drivers and riders. Riders and drivers/partners are covered under Insurance. Uber India is providing insurance cover worth Rs. 5 lakh in case of accidental deaths or disability or partial disability during a ride. For in-patient hospitalization, the insurance cover is Rs. 2 lakh. For outpatient, the insurance cover is up to Rs. 50,000.