Question

The minimum amount of compensation payable under Employees Compensation Act, 1923 in case of total permanent disablement of a railway servant due to accident is Rs _______?

• A. Rs 80,000/-
• B. Rs 90,000/-
• C. Rs 1,40,000/-
• D. Rs 1,20,000/-

Hint:

Remember the two key minimum compensation amounts under the Employees' Compensation Act: Rs. 1,20,000 for death and Rs. 1,40,000 for total permanent disablement.

Answer 1

The Correct Option is C

Section 4(1) of the Employees' Compensation Act, 1923, provides the formula for calculating compensation. However, the Act has been amended to prescribe minimum amounts to ensure a basic level of compensation. According to the proviso to Section 4(1), the minimum amount of compensation for death is Rs. 1,20,000, and for total permanent disablement, it is Rs. 1,40,000. The actual compensation would be calculated using the statutory formula (a percentage of monthly wages multiplied by a relevance factor based on age) or the minimum amount, whichever is higher.