Type:Preventive Compliance Frequency: Annual

Action to be taken:
An employer is liable to pay compensation in case of injury or death to operators of dangerous machines, as would be payable under the Workmens Compensation Act.

Every employer should take out insurance policies that provide for insurance against any liability arising out of the need to pay compensation under Section 21 to operators of dangerous machines.

The policy should ensure that annuities are paid to the operator, or in the case of death, to the family members or nominees of the operator and should be renewed so that it stays in force during the period the person employed by him is operating the dangerous machine.

In case of failure to take out the insurance policy, compensation would be payable from the employers funds.


Audit Requirement:
Are all workers working on dangerous machines adequately insured ? Is the insurance policy renewed ?

Supporting Documents:
Copies of insurance policies

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Related Sections:
Dangerous Machines (Regulation) Act, 1983
Chapter:Duties and Obligations of users of dangerous machines| 22:Employer's liability for compensation:
(1) If, during his employment as an operator of a dangerous machine, death or dismemberment of any limb or any other bodily injury is caused to such operator, his employer shall be liable to pay compensation-
(a) in the case of death of the operator, to his family, and
(b) in any other case, to the operator:
Provided that where the operator does not have a family, the compensation shall be paid to the person or persons nominated in this behalf by the operator in writing and notified to the Controller:
Provided further that the employer shall not be so liable-
(i) in respect of any injury which does not result in the total or partial disablement of the operator for a period exceeding three days ; or
(ii) in respect of any injury, not resulting in death, caused by an accident which is directly attributable to -
(a) the operator having been at the time thereof under the influence of any intoxicant or drug, or
(b) the willful removal by the worker of any safety guard or other device which he knew to have been provided in the machine for the purpose of securing the safety of the operator.
(2) The amount of the compensation payable under sub-section (1) shall be determined and paid in accordance with the provisions of the Workmen's Compensation Act, 1923 (8 of 1923), as if the operator were a workman within the meaning of that Act, and, for this purpose, the provisions of the said Act shall apply to him as they apply to a workman within the meaning of that Act. Dangerous Machines (Regulation) Act, 1983
Chapter:Duties and Obligations of users of dangerous machines| 23:Notice of accident:
(1) Where the death or dismemberment of any limb or any other bodily injury has been caused to an operator, during the course of his employment, notice of such death, dismemberment or injury shall be given to the employer within three days from the date on which such death, dismemberment or injury was caused.
(2) Such notice shall be given by the operator if he is alive or by any member of his family or any other person interested in him.
(3) Omission to give the notice referred to in sub-section (2) shall not disentitle the operator or the members of his family, as the case maybe, to receive the compensation payable under this Act. Dangerous Machines (Regulation) Act, 1983
Chapter:Duties and Obligations of users of dangerous machines| 24:Duty of employer to take out Insurance policies:
(1) Every employer shall take out, as soon as may be practicable after the commencement of this Act, one or more insurance policies providing for contracts of insurance whereby he is insured against any liability arising out of sub-section (1) of section 22 to make payment of compensation to any operator of a dangerous machine and such contract of insurance may provide for the payment of annuities to the operator, or in case of his death, to the members of his family or to his nominee, if he does not have a family.
(2) Every employer shall get the insurance policy referred to in sub-section (1) renewed from time to time before the expiry of the period of validity thereof so that the policy of insurance may remain in force throughout the period during which any person is employed by him to operate any dangerous machine. Dangerous Machines (Regulation) Act, 1983
Chapter:Duties and Obligations of users of dangerous machines| 25:Omission or failure of the employer to take out Insurance policies:
(1) In the event of the omission or failure of the employer to take out an insurance policy referred to in section 24 or in the event of the omission, failure or inability of the employer to keep such insurance policy in force or to obtain, from the insurer , any amount required to be paid as compensation to an operator, or to the members of his family or nominee, as the case may be, the employer shall make payment of compensation from his own funds, to the operator, or to the members of his family or his nominee, as the case may be, as soon as possible after the date on which the operator suffers death or dismemberment of limb or other bodily injury but not later than thirty days from such date and on such payment the employer's liability for payment of compensation to the operator or to members of his family shall stand fully discharged.
(2) The discharge of the liability referred to in sub-section (1) shall not take away or abridge the right of, the employer to receive, from the insurer, such payment as may be due to him under the policy of insurance taken out or renewed by him.