LABOUR AND INDUSTRIAL LAWS ASSIGNMENT

COMPLIANCE OF WORKMEN’S COMPENSATION ACT,1923

IN
TATA STEEL

TATA STEEL |

Submitted by: Submitted to:

Kashish Soran Prof. Luxmi Malodia

MBA-HR (2018-2020) (UBS, Panjab University)
(UBS, Panjab University)
 About the Company
Tata Steel was established in India as Asia’s first integrated private stee l company in 1907. With
this, they also developed India’s first industrial city at Jamshedpur. Today, they are among the
leading global steel companies. Their annual crude steel capacity across Indian oper ations is nearly
13 MnTPA and they registered a turnover of US $7889 Mn in FY 2017. They also set up their second
greenfield steel plant in the eastern state of Odisha; commissioning the first phase (3 MnTPA) of
6 MnTPA capacity in 2016. They possess and operate captive mines that help them maintain cost-
competitiveness and production efficiencies through an uninterrupted supply of raw materia l. This
is how they ensure that they remain the lowest cost producer of steel in Asia.

 WORKMEN’S COMPENSATION ACT, 1923

The Workmen's Compensation Act, 1923 is one of the important social security legislations. It
aims at providing financial protection to workmen and their dependents in case of accidental
injury by means of payment of compensation by the employers.
In this study we have found that company is following the same provisions and rules as defined
by the this act but still there are some additional rules and provisions which can be explained as
follows:

 WORKMEN’S COMPENSATION POLICY AT COMPANY

TATA Steel relies on the TATA AIG policies to take care of interest of the employee and to
meet the conditions of the Workmen’s Compensation Act, 1923.
TATA AIG General Insurance Company Limited (We, Our or Us) will provide the insurance
described in this Policy and any endorsements thereto for the Insured Period as defined in this
Policy, to the Insured Persons detailed in the Policy Schedule and in reliance upon the statements
contained in the Proposal , which shall be the basis of this Policy and are deemed to be
incorporated herein in return for the payment of the required premium when due and compliance
with all applicable provisions of this Policy.

The insurance provided under this Policy is only with respect to such and so many of the benefits
as are indicated by a specific amount set opposite in the Policy Schedule.
POLICY WORDINGS: WORKMEN'S COMPENSATION POLICY.

WHEREAS the insured carrying on the Business described in the schedule and no other for the
purpose of this insurance by a proposal and declaration which shall be the basis of this contract
and is deemed to be incorporated herein has applied to the Company for the insurance hereinafter
contained and has paid or agreed to pay the Premium as consideralion for such insurance,

NOW THIS POLICY WITNESSETH that if at any time during the Period of Insurance any
employee in the Insured’s immediate service shall sustain personal injury by accident or disease
arising out of and in the course of his employment by the Insured in the Business and if the
Insured shall be liable to pay compensation for such injury either under:

The Law’s set out in the Schedule

or at Common Law

Then subject to the terms exceptions and conditions contained herein or endorsed hereon the
Company will indemnify the insured against all sums for which the Insured shall be so liable and
will in addition be responsible for all costs and expenses incurred with its consent in defending
any claim for such compensation. Provided always that in the event of any change in the Law’s
or the substitution of other legislation therefore this Policy shall remain in force but the liability
of the company shall be limited to such sum as the Company would have been able to pay if the
Law’s had remained unaltered.

EXCEPTIONS

The Company shall not be liable under the policy in respect of:

a) Any injury by accident or disease directly attributable to war, invasion, act of foreign
enemy, hostilities (whether war be declared or not), civil war, mutiny, insurrection,
rebellion, revolution, terrorism or military or usurped power ;
b) The Insured's liability to employees of contractors to the Insured ;

c) Any liability of the Insured which attaches by virtue of an agreement but which would not
have attached in the absence of such agreement ;

d) Any sum which the Insured would have been entitled to recover from any party but for an
agreement between the insured and any such party.

CONDITIONS

1. This policy and the Schedule shall be read together as one contract and any word or
expression to which a specific meaning has been attached in any part of this Policy or of the
Schedule shall bear stich specific meaning wherever it may appear.
2. Every notice or communication to be given or made under this policy shall be delivered in
writing to the Company.
3. The {insured shall take reasonable precautions to prevent accidents and disease and shall
comply with all statutory obligations.
4. In the event of any occurrence which may give rise to a claim under this Policy the Insured
shall as soon as possible give notice thereof to the Company with full particulars. Every letter
claim writ summons and process shall be notified or forwarded to the Company immediately
on receipt Notice shall also be given to the company immediately the Insured shall have
knowledge of any impending prosecution inquest or fatal in connection with any such
occurrence as aforesaid.
5. No admission offer promise or payment shall be made by or on behalf of the insured without
the consent of the Company which shall be entitled if it so desires to take over and conduct in
his name the defence or settlement of any claim or to prosecute in his name for its own
benefit any claim for indemnity or damages or otherwise and shall have full discretion in the
conduct of any proceedings and in the settlement of any claim and the Insured shall give all
such information and assistance as the Company may require.

6. The first premium and all renewal premiums that may be accepted are to be regulated by the
amount of wages and salaries and other earnings paid by the Insured to employees during
 each Period of Insurance. The name of every employee together with the amount of wages
salary and other earnings shall be properly recorded and the Insured shall at all times allow
the Company to inspect such records and shall supply the Company with a correct account of
all such wages salaries and other earnings paid during any period of Insurance within one
month from expiry date of such Period of Insurance. It the amount so paid shall differ from
the amount on which premium has been paid the difference in premium shall be met by a
further proportionate payment to the Company or by a refund by the Company as the case
may be.

7. The Company may cancel this Policy by sending seven days notice by registered letter to the
Insured at his last known address and in such event the premium shall be adjusted in
accordance with Condition 6

8. If any difference shall arise as to the quantum to be paid under this Policy, (liability being
otherwise admitted) such difference shall independently of all other questions be referred to
the decision of an arbitrator, to be appointed in writing by the parties in difference, or if they
cannot agree upon a single arbitrator to the decision of two disinterested persons as
arbitrators of whom one shall be appointed in writing by each of the parties within two
calendar months after having been required so to do in writing by the order party in
accordance with the provisions of the Arbitration and Conciliation Act 1996, as amended
from time to time and for the time being in force. In case either party shall refuse or fail to
appoint arbitrator within two calendar months after receipt of notice in writing requiring an
appointment, the other party shall be at liberty to appoint sole arbitrator; and in case of
disagreement between the arbitrators, the difference shall be referred to the decision of an
umpire who shall have been appointed by them in writing before entering on the reference
and who shall sit with the arbitrators and preside at their meetings.

It is clearly agreed and understood that no difference or dispute shall be referable to

arbitration as hereinbefore provided, if the Company has disputed or not accepted liability
under or in respect of this Policy.
 It is hereby expressly stipulated and declared that it shall be condition precedent to any right
of action or suit upon this policy that the award by such arbitrator, arbitrators or umpire of
the amount of the loss or damage shall be first obtained.

It is also hereby further expressly agreed and declared that if the Company shall disclaim
liability to the Insured for any claim hereunder and such claim shall not, within |2 calendar
months from the date of such disclaimer have been made the subject matter of a suit in a
court of law, then the claim shall for all purposes be deemed to have been abandoned and
shall not thereafter be recoverable hereunder,

9. The due observance and fulfillment of the terms, conditions and endorsements of this Policy
so far as they relate to anything to be done or not to be done by the Insured and the truth of
the statements and answers in the Proposal shall be conditions precedent to any liability of
the company to make any payment under this policy.

 The sample policy of the TATA STEEL can be explained through the below given
information.
 SAMPLE OF POLICY

_____________________________________________________________________________

Agent/Broker Name - (Brokers Name)

Agent/Broker License Code - -*/** Agent/Broker:Contact No — 00000000000 (Mobile or
Landline}
Insured Name :
Policy No.: 0000000000
Address :
Business : XXXXXXXX XNXX NXXXXXX XXXKXXXXNXX XXXKXKNXXXNX XXX

Law(s} : 1. The Employee's Compensation Act, 1923

2. Fatal Accidents Act, 1855

Note:- The Employee's Compensation Act, 1923 and subsequent amendments of

the said Act prior fo the date of the issue of the Policy provided that the Insurance
granted hereunder is not extended to include any interest and/or penalty imposed
on the Insured on account of his/their failure to comply with the requirements laid
down under the Employee's Compensation Act 1923

Period of Insurance: (a) From: xx/xx/xxxx To: xxX/xx/xxxx (both dates inclusive)

(b) Any subsequent period for which the insured shall pay and the
Company shail agree to accept a renewal premium.
______________________________________________________________________________

Premium : Rs.XX,XXX.XKX

Add 14% Service Tax : Rs. X,XXXLNX

Total : Rs XX

Subject to adjustment in the terms of Conditions 6 The estimated amount of wages salaries and
other earnings on which Premium is based.
 TRACK RECORD

To maintain the proper record of the employees and to provide the best facilities to the
employees in terms of compensation the company has to maintain the proper record of the
employees as follows:

Estimated Occupation Estimated Value of food, Estimated Place or

number of of Total fuel, quarters Total places of
Employees Employees Salaries and other Earnings employment
Wages and consideration
other in addition to
money money
earning earnings

Conditions:

The stamp duty of Rs.00.00/- paid in cash or demand draft or by pay order, vide Receipt/Challan
no: MHCOCO000000000000 dated the xx/xx/xxxx

Date | Xx/xx/xxXx For TATA-AIG General insurance Company

Ltd. Place :
 FORMS FOLLOWED BY THE TATA STEEL

These are the forms followed by the TATA STEEL for compliance of the Workmen’s
Compensation Act, 1923.

1. Form A Rule 6 (1): Deposit of Compensation for fatal accident

2. Form AA Rule 6 (1): Deposit of Compensation for non fatal accident to a woman or
a person under legal disability

3. Form B Rule 6 : Receipt of Compensation

4. Form C Rule 6 : Statement of Disbursements

5. Form D Rule 9 : Deposit of Compensation for non Fatal Accidents

6. Form E Rule 9 : Receipt of Compensation Deposited under Section 8(2) of the Act

7. Form EE Rule 11: Report of Fatal Accidents

8. Form F Rule 20 : Application for Compensation by Workman

9. Form G Rule 20 : Application for Order to Deposit Compensation

10. Form H Rule 20 : Application for Commutation

11. Form J Rule 39(1) : Notice where indeminity is claimed

12. Form JJ Rule 39(3) : Notice where indeminity is claimed

13. Form K Rule 48 : Memorandum of Agreement Temporary Disablement

14. Form L Rule 48 : Memorandum of Agreement Permanent Disablement

15. Form M Rule 48 : Memorandum of Agreement Half Monthly Wages on Temporary

Disablement

16. Form N Rule 49: Notice to record a Memorandum of Agreement

17. Form O Rules 49 & 50(2): Ination of Decision on Recording of Agreement

18. Form P Rule 50(2): Refusal to Register Memorandum of Agreement

19. Form Q Rule 50(2): Show Cause Notice on Refusal to Register Memorandum of
Agreement

20. Form R Rule 52 : Register of Agreements to be maintained by the Commissioner

CONCLUSION

TATA STEEL is following all provisions and rules as given under the workmen’s compensation
act, 1923. To reduce the financial burden on the company, they follow the insurance policy of
the TATA group itself. But this policy also imposes some restriction on the company which are
elaborated above.

The difference in the implementation of Workmen Compensation Act, 1923 is created because of
the compliance policy of TATA AIG General Insurance Company Limited. The TATA AIG
group also follows Fatal Accidents Act, 1855 in addition to the Workmen Compensation Act,
1923 to take care of the interest of the employees of the organization.

There are 20 forms which are being implemented by the TATA STEEL in their organization as
mentioned above which see every aspect from the deposit of the compensation to the register of
the agreement maintained by the commissioner.