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What is Permanent Partial Disablement

Posted on 29 August, 2022

Permanent Partial Disablement or permanent partial disability is a condition where an individual has suffered permanent damage to, or loss of limbs or organs. This is a categorization under the Workmen’s Compensation insurance whereby an individual has been rendered partially incapable of performing duties due to a workplace accident or hazard.

The Workmen’s Compensation policy clearly distinguishes permanent partial, permanent total and temporary disablement. In the case of permanent partial disablement of an insured individual, the individual is entitled to compensation as per the Workmen’s Compensation policy after assessment by a qualified doctor. Depending on the extent and nature of injury or handicap, the compensation amount is determined.

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The percentage of compensation is based on the percentage of loss of earning capacity of the injured. In cases where the disability is curable by treatment or surgery, the individual will not be eligible for the benefits of permanent partial disablement covered under the Workmen’s Compensation insurance.

As per the Employee’s Compensation Act, 1923 (formerly Workmen’s Compensation Act, 1923) and Indian Fatal Accidents Act, 1855, in India, adequate compensation must be paid by employers to their employees or workers in case of any untoward incidents during work hours. Workmen’s Compensation policy helps industrial and business establishments to meet this statutory requirement. Business owners who opt for Workmen’s Compensation insurance can also be relieved of the financial liability in case of disablement of employees.

Understanding Workmen’s Compensation Policy

Workmen’s Compensation forms a part of the Employee’s Compensation Act, 1923, and outlines several conditions under which employers must pay compensation to employees. The Workmen’s Compensation policy is useful for employers to compensate their employees or dependents of employees (in case of death of employee) due to an accident or injury at the workplace during the working hours.

Broadly, a Workmen’s Compensation insurance provides coverage in case of:

  • Accidental Death

  • Permanent Partial Disability

  • Permanent Total Disability

  • Temporary Total Disability

With add-ons, it is also possible to opt for coverage for certain other cases such as:

  • Medical Extension

  • Occupational Diseases

  • Sub-contractor Coverage

  • Compressed Air Disease

  • Injury due to acts of terrorism

A Workmen’s Compensation insurance helps employers meet statutory norms, and hence is relevant for all business owners in India. However, Workmen’s Compensation insurance is most beneficial for:

  • Manufacturing / trading / servicing setups (for floor workers and office staff)

  • Contractors / Sub contractors

  • Individual /public or private companies / partnership firm

  • Any business / trading entity

Permanent Partial Disablement in Workmen’s Compensation

Permanent Partial Disablement under Workmen’s Compensation policy is a doctor-certified condition of disablement that is due for compensation by the employer. There are certain physical conditions listed as per the Workmen’s Compensation insurance in which an employee is eligible for compensation.

Compensation is due when the loss or damage is irrecoverable. Some of these include:

  • Loss of toes

  • Loss of limbs

  • Loss of eyesight

  • Loss of fingers

  • Loss of fingers

Compensation under Workmen’s Compensation policy is determined by the nature and extent of loss, and how it affects the worker’s output of work. Therefore, conditions such as loss of hearing are eligible for a higher percentage of compensation compared to loss of a toe or finger.

It is relevant to note that not all losses or injuries are covered under the Workmen’s Compensation policy. Certain situations that result in physical damage or loss of a body part are not eligible for compensation even though it renders the workman incapable of working.

Some of these exclusions include:

  • Accidents arising from disregard of workers to safety protocols and guidelines

  • Injury or damage arising from war, invasion or other related perils

  • Accidents due to the influence of alcohol or drugs

  • Injury that does not last for more than three days (resulting in total or partial disablement)

Workmen’s Compensation policy offers a separate coverage for permanent total disablement, where the employee is considered unable to continue work in any capacity. In the case of permanent partial disablement, it is considered that the employee can perform some tasks. However, he is incapable of performing all the activities or meeting production requirements as he used to before his injury or disablement.

Calculating Compensation for Permanent Partial Disablement

In case of an accident or workplace hazard, the compensation is calculated based on the assessment by a qualified medical practitioner. The medical practitioner, post evaluation, provides an understanding of the extent of damage or loss, and the degree to which the worker’s earning capacity has been reduced.

Other factors that determine the compensation amount in case of permanent partial disablement include wages of the worker, age and birth date. A younger worker is eligible for higher compensation since the compensation amount needs to take into consideration all his remaining working years.

Conclusion

Workplace hazards are a nightmare for all business owners. Despite the best measures to create and maintain a safe work environment for employees, there is no guarantee that untoward incidents will not occur, especially in factories and manufacturing units. Such situations lead to mental distress, lowered productivity rates, legal hassles, along with taking a toll on the finances of the company.

A Workmen’s Compensation insurance provides coverage for permanent partial disablement by providing the injured worker adequate compensation. Organizations that have opted for Workmen’s Compensation policy are thus relieved from the financial burden while complying to statutory requirements. Choose the Workmen’s Compensation policy from ICICI Lombard for swift and easy claim processing, and lend a helping hand to your employees in their times of need.

  • Workmen’s Compensation
  • Product Code: 4010
  • Product UIN: IRDAN115CP0017V01201920

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Workman Compensation, 4010 , IRDAN115P0010V01200607)