The Workmen’s Compensation Act, 1923

The Workmen’s Compensation Act, 1923
INTRODUCTION
The passing of Workmen’s Compensation Act in 1923 was the first step towards social security
of workmen. The theory of this act is that “ the cost of product should bear the blood of the
workman”. This Act provides compensation to certain classes of workmen by their employers
for injury, which may be suffered, by the workmen as result of an accident during the course of
employment.
Object
To provide Compensation to Workmen for accidental injury and occupational diseases arising
during and in the course of employment.
Applicability of Act
This Act is applicable to all employments in which the ESI Act is not applicable.
BASIC CONCEPTS
“Dependent” means any of the following relatives of a deceased workman, namely :—
(i) A widow, a minor legitimate or adopted son, and unmarried legitimate or adopted
daughter, or a widowed mother; and
(ii) If wholly dependent on the earnings of the workman at the time of his death, a son or a
daughter who has attained the age of 18 years and who is infirm;
(iii) If wholly or in part dependent on the earnings of the workman at the time of his death,
(a) a widower,
(b) A parent other than a widowed mother,
(c) A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate
or illegitimate or adopted if married and a minor or if widowed and a minor,
(d) A minor brother or an unmarried sister or a widowed sister if a minor,
(e) A widowed daughter-in-law,
(f) A minor child of a pre-deceased son,
(g) A minor child of a pre-deceased daughter where no parent of the child is alive, or
(h) A paternal grandparent if no parent of the workman is alive.
Explanation : For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause
(iii), references to a son, daughter or child include an adopted son, daughter or child
respectively;
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”Employer”
Includes any body of persons whether incorporated or not, and any managing agent of an
employer, and the legal representative of a deceased employer, and, when the services of a
workman are temporarily lent or let on hire to another person by the person with whom the
workman has entered into a contract of service or apprenticeship, means such other person
while the workman is working for him;
”Wages”
Includes any privilege or benefit which is capable of being estimated in money, other than a
travelling allowance or the value of any travelling concession or a contribution paid by the
employer a workman towards any pension or provident fund or a sum paid to a workman to
cover any special expenses entailed on him by the nature of his employment;
”Workman”
Means any person (other than a person whose employment is of a casual nature and who is
employed otherwise than for the purposes of the employer’s trade or business) who is - (i) a
railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not
permanently employed in any administrative, district or sub-divisional office of a railway and
not employed in any such capacity as is specified in Schedule II.
Disablement
Total disablement Partial disablement Incapacitates workman for all work which he was capable
of doing at the time of accident Temporary Permanent Reduces earning capacity of workman
in any employment in which he was engaged at the time of accident Reduces earning capacity
of workman in every employment in which he was engaged at the time of accident.
Main Provisions of the Act
Injury / Diseases arising out of and in course of employment are payable – The term ‘arising
out of and in the course of employment’ means that Compensation is payable only in those
injury/diseases where the employment is the immediate and proximate cause of the said injury
disease. In other words, the injury/disease would not have occurred had the workman not
been employed in the particular employment.
Compensation payable – The Workmen’s Compensation payable as per the act is as under :
Compensation
1. Death due to injury 50% of wages * Relevant factor OR Rs 80,000/- , whichever is more,
2. Permanent total disablement due to injury 60% of wages * Relevant factor OR
Rs 90,000/- , whichever is more,
3. Permanent Partial disablement due to injury % of compensation as is payable in (ii) or %
of compensation proportionate to loss of earning capacity,
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4. Temporary Disablement 25% of wages paid half monthly,
5. Occupational disease Occupational disease to be treated as injury by accident and
compensation as applicable in the cases of injury are payable.
Following points are to be noted in calculation of compensation :
(a) Wages to be actual or Max Rs 4000/- per month,
(b) Relevant factor are given in Schedule III of the Act,
(c) Employee not eligible for compensation when he/she has filed a Civil Suit against the
employer.
Compensation not payable : Compensation under this Act is not payable when
• The disablement due to injury is less than 4 days.
• The employee was under the influence of drugs/alcohol at the time of accident.
• Workman willfully disobeys any safety rule.
• Workman willfully removes/disregards any safety guard/ equipments.
• Workman has filed a Civil suit against the employer for claim of compensation.
• Workman has refused to get himself medically examined cost of which is borne by the
employer.
Payment of Compensation
The Compensation payable under the Act is to be made by deposit to the Commissioner of
Workmen’s Compensation who will distribute the same to workmen or his dependents.
However, amount equal to 3 months wages can be paid directly to the dependents in cases of
death of workman, provided the said amount is less than the total compensation payable to
workman.
Report of death and serious bodily injury – should be given within 7 days of the death/ serious
bodily injury to the Commissioner of Workmen’s Compensation.
Medical Examination –The employer should get the medical examination of the workman
who has made a claim for compensation, within 3 days of receipt of claim.
Workmen’s Compensation Rules, 1924:
Object:
The objective of this Act is that in the case of an employment injury compensation be provided
to the injured workman and in case of his death to his dependants.
Employer to pay compensation:
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In case a personal injury is caused to a workman by accident arising out of and in the course of
his employment, his employer is liable to pay compensation in accordance with the provision
of the Act within 30 days from the date when it fell due otherwise he would also be liable to
pay interest and penalty.
When employer is not liable:
In case the disablement of workman is three or less days; except in case of death when the
injury is caused due to influence of drink or drug takenby the workman or upon his wilful
disobedience to obey safety rules or removal of safetyguards by him.
Amount of compensation :
(1) in case of death:- an amount equal to 50% of the monthlywage multiplied by the relevant
factor as given in Schedule IV of the Act or Rs. 80,000/-whichever is more.
(2) In case of permanent total disablement, it is 60% or Rs. 90,000/-whichever is more, and
(3) In case of permanent partial disablement occurs then thecompensation is proportionate to
the disability arrived as at (2) above.
Notice: An injured person or his dependants have to give a notice to the employer to pay
compensation.
Claim:
Upon the failure or refusal of an employer to give compensation, an application is to the made
in Form - F to the Commissioner under the Workmen’s Compensation Act,1923 who is the
Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the area where the
accident took place or where the claimant ordinarily resides or where the employer has his
registered office. After hearing both the parties, the Commissioner decides the claim.
Contracting out: Any contract or agreement whereby an injured person or his dependant
relinquishes or reduce his right to receive compensation is null and void to that extent.
Appeal:
An appeal lie to the High Court against the orders of the Commissioner with regard to the
awarding or refusing to award compensation, or imposing interest or penalty, or regarding
distribution of compensation etc.Recovery : The amount of compensation awarded by the
Commissioner is to berecovered as arrears of land revenue.
3. EMPLOYER’S LIABILITY FOR COMPENSATION
(1) If personal injury is caused to a workman by accident arising out of and in the course of
his employment, his employer shall be liable to pay compensation in accordance with the
provisions of this Chapter :
Provided that the employer shall not be so liable—
(a) in respect of any injury which does not result in the total or partial disablement of the
workman for a period exceeding three days;
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(b) in respect of any injury, not resulting in death or permanent total disablement, caused
by an accident which is directly attributable to—
(i) the workman having been at the time thereof under the influence of drink or drugs, or
(ii) the willful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or
(iii) the willful removal or disregard by the workman of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of
workmen.
(2) If a workman employed in any employment specified in Part A of Schedule III contracts
any disease specified therein as an occupational disease peculiar to that employment, or if
a workman, whilst in the service of an employer in whose service he has been employed
for a continuous period of not less than six months (which period shall not include a
period of service under any other employer in the same kind of employment) in any
employment specified in Part B of Schedule III, contracts any disease specified therein as
an occupational disease peculiar to that employment, or if a workman whilst in the service
of one or more employers in any employment specified in Part C of Schedule III, for such
continuous period as the Central Government may specify in respect of each such
employment, contracts any disease specified therein as an occupational disease peculiar
to that employment, the contracting of the disease shall be deemed to be an injury by
accident within the meaning of this section and, unless the contrary is proved, the accident
shall be deemed to have arisen out of, and in the course of, the employment :
Provided that if it is proved,—
(a) that a workman whilst in the service of one or more employers in any employment
specified in Part C of Schedule III has contracted a disease specified therein as an
occupational disease peculiar to that employment during a continuous period which
is less than the period specified under this sub-section for that employment, and
(b) that the disease has arisen out of and in the course of the employment; the contracting
of such disease shall be deemed to be an injury by accident within the meaning of this
section :
Provided further that if it is proved that a workman who having served under any
employer in any employment specified in Part B of Schedule III or who having served
under one or more employers in any employment specified in Part C of that Schedule,
for a continuous period specified under this sub-section for that employment and he
has after the cessation of such service contracted any disease specified in the said Part
B or the said Part C, as the case may be, as an occupational disease peculiar to the
employment and that such disease arose out of the employment, the contracting of
the disease shall be deemed to be an injury by accident within the meaning of this
section.
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(2A)If a workman employed in any employment specified in Part C of Schedule III contracts
any occupational disease peculiar to that employment, the contracting whereof is deemed
to be an injury by accident within the meaning of this section, and such employment was
under more than one employer, all such employers shall be liable for the payment of the
compensation in such proportion as the Commissioner may, in the circumstances, deem
just.
(3) The Central Government or the State Government, after giving, by notification in the
Official Gazette, not less than three months’ notice of its intention so to do, may, by a like
notification, add any description of employment to the employments specified in Schedule
III, and shall specify in the case of employments so added the diseases which shall be
deemed for the purposes of this section to be occupational diseases peculiar to those
employments respectively, and thereupon the provisions of sub-section (2) shall apply In
the case of a notification by the Central Government, within the territories to which this
Act extends or, in case of a notification by the State Government, within the State as if
such diseases had been declared by this Act to be occupational diseases peculiar to those
employments.
(4) Save as provided by Sub-sections (2), (2A) and (3), no compensation shall be payable to a
workman in respect of any disease unless the disease is directly attributable to a specific
injury by accident arising out of and in the course of his employment.
(5) Nothing herein contained shall be deemed to confer any right to compensation on a
workman in respect of any injury if he has instituted in a Civil Court a suit for damages in
respect of the injury against the employer or any other person; and no suit for damages
shall be maintainable by a workman in any Court of law in respect of any injury -
(a) If he has instituted a claim to compensation in respect of the injury before a
Commissioner; or
(b) If an agreement has been come to between the workman and his employer providing
for the payment of compensation in respect of the injury in accordance with the
provisions of this Act.
4. AMOUNT OF COMPENSATION
(1) Subject to the provisions of this Act, the amount of compensation shall be as follows,
namely:—
(a) Where death results from the injury, an amount equal to fifty percent of the monthly
wages of the deceased workman multiplied by the relevant factor; or an amount of
fifty thousand rupees, whichever is more;
(b) Where permanent total disablement results from the injury, an amount equal to sixty
percent of the monthly wages of the injured workman multiplied by the relevant factor,
or an amount of sixty thousand rupees, whichever is more.
Explanation I : For the purposes of clause (a) and clause (b), “relevant factor”, in relation to a
workman means the factor specified in the second column of Schedule IV against the entry in
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the first column of that Schedule specifying the number of years which are the same as the
completed years of the age of the workman on his last birthday immediately preceding the
date on which the compensation fell due;
Explanation II : Where the monthly wages of a workman exceed two thousand rupees, his
monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be two thousand
rupees only;
(c) Where permanent partial disablement results from the injury —
(i) in the case of an injury specified in Part II of Schedule I, such percentage of the
compensation which would have been payable in the case of permanent total
disablement as is specified therein as being the percentage of the loss of earning capacity
caused by that injury, and
(ii) In the case of an injury not specified in Schedule I, such percentage of the compensation
payable in the case of permanent total disablement as is proportionate to the loss of
earning capacity (as assessed by the qualified medical practitioner) permanently caused
by the injury;
Explanation I : Where more injuries than one are caused by the same accident, the amount of
compensation payable under this head shall be aggregated but not so in any case as to exceed
the amount which would have been payable if permanent total disablement had resulted from
the injuries;
Explanation II : In Assessing the loss of earning capacity for the purposes of sub-clause (ii) the
qualified medical practitioner shall have due regard to the percentages of loss of earning capacity
in relation to different injuries specified in Schedule I;
(d) Where temporary a half monthly payment of the sum disablement, whether equivalent
to twenty-five per cent of total or partial, results monthly wages of the workman, to
from the injury be paid in accordance with the provisions of sub-section (2).
(1A)Notwithstanding anything contained in sub-section (1), while fixing the amount of
compensation payable to a workman in respect of an accident occurred outside India, the
Commissioner shall take into account the amount of compensation, if any, awarded to
such workman in accordance with the law of the country in which the accident occurred
and shall reduce the amount fixed by him by the amount of compensation awarded to the
workman in accordance with the law of that country.
(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on
the sixteenth day—
(i) From the date of disablement where such disablement lasts for a period of twentyeight
days or more; or
(ii) After the expiry of a waiting period of three days from the date of disablement where
such disablement lasts for a period of less than twenty-eight days; and thereafter halfmonthly
during the disablement or during a period of five years, whichever period is
shorter :
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Provided that—
(a) there shall be deducted from any lump sum or half-monthly payments to which the
workman is entitled the amount of any payment or allowance which the workman has
received from the employer by way of compensation during the period of disablement
prior to the receipt of such lump sum or of the first half-monthly payment, as the case may
be; and
(b) No half-monthly payment shall in any case exceed the amount, if any, by which half the
amount of the monthly wages of the workman before the accident exceeds half the amount
of such wages which he is earning after the accident.
Explanation : Any payment or allowance which the workman has received from the employer
towards his medical treatment shall not be deemed to be a payment or allowance received by
him by way of compensation within the meaning of clause (a) of the proviso.
(3) On the ceasing of the disablement before the date on which any half-monthly payment
falls due, there shall be payable in respect of that half-month a sum proportionate to the
duration of the disablement in that half-month.
(4) If the injury of the workman results in his death, the employer shall, in addition to the
compensation under sub-section (1), deposit with the Commissioner a sum of one thousand
rupees for payment of the same to the eldest surviving dependant of the workman towards
the expenditure of the funeral of such workman or where the workman did not have a
dependant or was not living with his dependant at the time of his death to the person who
actually incurred such expenditure.
4A. COMPENSATION TO BE PAID WHEN DUE AND PENALTY FOR DEFAULT
(1) Compensation under section 4 shall be paid as soon as it falls due.
(2) In cases where the employer does not accept the liability for compensation to the extent
claimed, he shall be bound to make provisional payment based on the extent of liability
which he accepts, and, such payment shall be deposited with the Commissioner or made
to the workman, as the case may be, without prejudice to the right of the workman to
make any further claim.
(3) Where any employer is in default in paying the compensation due under this Act within
one month from the date it fell due, the Commissioner shall —
(a) direct that the employer shall, in addition to the amount of the arrears, pay simple
interest thereon at the rate of twelve per cent per annum or at such higher rate not
exceeding the maximum of the lending rates of any scheduled bank as may be specified
by the Central Government, by notification in the Official Gazette, on the amount
due; and
(b) if, in his opinion, there is no justification for the delay, direct that the employer shall,
in addition to the amount of the arrears and interest thereon, pay a further sum not
exceeding fifty per cent of such amount by way of penalty :
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Provided that an order for the payment of penalty shall not be passed under clause (b)
without giving a reasonable opportunity to the employer to show cause why it should
not be passed.
Explanation : For the purposes of this sub-section, “scheduled bank” means a bank for the
time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2
of 1934).
(3A)The interest payable under sub-section (3) shall be paid to the workman or his dependant,
as the case may be, and the penalty shall be credited to the State Government.
5. METHOD OF CALCULATING WAGES
In this Act and for the purposes thereof the expression “monthly wages” means the amount of
wages deemed to be payable for a month’s service (whether the wages are payable by the
month or by whatever other period or at piece rates), and calculated as follows, namely :—
(a) where the workman has, during a continuous period of not less than twelve months
immediately preceding the accident, been in the service of the employer who is liable to
pay compensation, the monthly wages of the workman shall be one-twelfth of the total
wages which have fallen due for payment to him by the employer in the last twelve months
of that period;
(b) where the whole of the continuous period of service immediately preceding the accident
during which the workman was in the service of the employer who is liable to pay the
compensation was less than one month, the monthly wages of the workman shall be the
average monthly amount which, during the twelve months immediately preceding the
accident, was being earned by a workman employed on the same work by the same
employer, or, if there was no workman so employed, by a workman employed on similar
work in the same locality;
(c) in other cases [including cases in which it is not possible for want of necessary information
to calculate the monthly wages under clause (b), the monthly wages shall be thirty times
the total wages earned in respect of the last continuous period of service immediately
preceding the accident from the employer who is liable to pay compensation, divided by
the number of days comprising such period.
Explanation : A period of service shall, for the purposes of this section be deemed to be
continuous which has not been interrupted by a period of absence from work exceeding fourteen
days.
6. REVIEW
(1) Any half-monthly payment payable under this Act, either under an agreement between
the parties or under the order of a Commissioner, may be reviewed by the Commissioner,
on the application either of the employer or of the workman accompanied by the certificate
of a qualified medical practitioner that there has been a change in the condition of the
workman or, subject to rules made under this Act, on application made without such
certificate.
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(2) Any half-monthly payment may, on review under this section, subject to the provisions of
this Act, be continued, increased, decreased or ended, or if the accident is found to have
resulted in permanent disablement, be converted to the lump sum to which the workman
is entitled less any amount which he has already received by way of half-monthly payments.
7. COMMUTATION OF HALF-MONTHLY PAYMENTS
Any right to receive half-monthly payments may, by agreement between the parties or, if the
parties cannot agree and the payments have been continued for not less than six months, on
the application of either party to the Commissioner be redeemed by the payment of a lump
sum of such amount as may be agreed to by the parties or determined by the Commissioner, as
the case may be.
8. DISTRIBUTION OF COMPENSATION
(1) No payment of compensation in respect of a workman whose injury has resulted in
death, and no payment of a lump sum as compensation to a woman or a person under a
legal disability, shall be made otherwise than by deposit with the Commissioner, and no
such payment made directly by an employer shall be deemed to be a payment of
compensation :
Provided that, in the case of a deceased workman, an employer may make to any dependant
advances on account of compensation of an amount equal to three months’ wages of such
workman and so much of such amount as does not exceed the compensation payable to
that dependant shall be deducted by the Commissioner from such compensation and repaid
to the employer.
(2) Any other sum amounting to not less than ten rupees which is payable as compensation
may be deposited with the Commissioner on behalf of the person entitled thereto.
(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any
compensation deposited with him.
(4) On the deposit of any money under sub-section (1), as compensation in respect of a deceased
workman the Commissioner shall, if he thinks necessary, cause notice to be published or
to be served on each dependant in such manner as he thinks fit, calling upon the dependants
to appear before him on such date as he may fix for determining the distribution of the
compensation.
If the Commissioner is satisfied after any inquiry which he may deem necessary, that no
dependant exists, he shall repay the balance of the money to the employer by whom it was
paid.
The Commissioner shall, on application by the employer, furnish a statement showing in detail
all disbursements made.
(5) Compensation deposited in respect of a deceased workman shall, subject to any deduction
made under sub-section (4), be apportioned among the dependants of the deceased
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workman or any of them in such proportion as the Commissioner thinks fit, or may, in the
discretion of the Commissioner, be allotted to any one dependant.
(6) Where any compensation deposited with the Commissioner is payable to any person, the
Commissioner shall, if the person to whom the compensation is payable is not a woman
or a person under a legal disability, and may, in other cases, pay the money to the person
entitled thereto.
(7) Where any lump sum deposited with the Commissioner is payable to a woman or a person
under a legal disability, such sum may be invested, applied or otherwise dealt with for the
benefit of the woman, or of such person during his disability, in such manner as the
Commissioner may direct; and where a half-monthly payment is payable to any person
under a legal disability, the Commissioner may, of his own motion or on an application
made to him in this behalf, order that the payment be made during the disability to any
dependant of the workman or to any other person, whom the Commissioner thinks best
fitted to provide for the welfare of the workman.
(8) Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied
that, on account of neglect of children on the part of a parent or on account of the variation
of the circumstances of any dependant or for any other sufficient cause, an order of the
Commissioner as to the distribution of any sum paid as compensation or as to the manner
in which any sum payable to any such dependant is to be invested, applied or otherwise
dealt with, ought to be varied, the Commissioner may make such orders for the variation
of the former order as he thinks just in the circumstances of the case :
Provided that no such order prejudicial to any person shall be made unless such person
has been given an opportunity of showing cause why the order should not be made, or
shall be made in any case in which it would involve the repayment by a dependant of any
sum already paid to him.
(9) Where the Commissioner varies any order under sub-section (8) by reason of the fact that
payment of compensation to any person has been obtained by fraud, impersonation or
other improper means, any amount so paid to or on behalf of such person may be recovered
in the manner hereinafter provided in section 31.
9. COMPENSATION NOT TO BE ASSIGNED, ATTACHED OR CHARGED
Save as provided by this Act, no lump sum or half-monthly payment payable under this Act
shall in-any way be capable of being assigned or charged or be liable to attachment or pass to
any person other than the workman by operation of law, nor shall any claim be set off against
the same.
10. NOTICE AND CLAIM
(1) No claim for compensation shall be entertained by a Commissioner unless notice of the
accident has been given in the manner hereinafter provided as soon as practicable after the
happening thereof and unless the claim is preferred before him within two years of the
occurrence of the accident or, in case of death, within two years from the date of death :
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Provided that, where the accident is the contracting of a disease in respect of which the
provisions of sub-section (2) of section 3 are applicable, the accident shall be deemed to
have occurred on the first of the days during which the workman was continuously absent
from work in consequence of the disablement caused by the disease :
Provided further that in case of partial disablement due to the contracting of any such
disease and which does not force the workman to absent himself from work, the period of
two years shall be counted from the day the workman gives notice of the disablement to
his employer :
Provided further that if a workman who, having been employed in an employment for a
continuous period, specified under sub-section (2) of section 3 in respect of that
employment, ceases to be so employed and develops symptoms of an occupational disease
peculiar to that employment within two years of the cessation of employment, the accident
shall be deemed to have occurred on the day on which the symptoms were first detected:
Provided further that the want of or any defect or irregularity in a notice shall not be a bar
to the entertainment of a claim - (a) if the claim is preferred in respect of the death of a
workman resulting from an accident which occurred on the premises of the employer, or
at any place where the workman at the time of the accident was working under the control
of the employer or of any person employed by him, and the workman died on such premises
or at such place, or on any premises belonging to the employer, or died without having
left the vicinity of the premises or place where the accident occurred, or (b) if the employer
or any one of several employers or any person responsible to the employer for the
management of any branch of the trade or business in which the injured workman was
employed had knowledge of the accident from any other source at or about the time when
it occurred :
Provided further that the Commissioner may entertain and decide any claim to
compensation in any case notwithstanding that the notice has not been given, or the claim
has not been preferred in due time as provided in this sub-section, if he is satisfied that the
failure so to give the notice or prefer the claim, as the case may be, was due to sufficient
cause.
(2) Every such notice shall give the name and address of the person injured and shall state in
ordinary language the cause of the injury and the date on which the accident happened,
and shall be served on the employer or upon any one of several employers, or upon any
person responsible to the employer for the management of any branch of the trade or
business in which the injured workman was employed.
(3) The State Government may require that any prescribed class of employers shall maintain
at their premises at which workmen are employed a notice-book, in the prescribed form,
which shall be readily accessible at all reasonable times to any injured workman employed
on the premises and to any person acting bond fide on his behalf.
(4) A notice under this section may be served by delivering it at, or sending it by
registered post addressed to, the residence or any office or place of business of the person
on whom it is to be served, or, where a notice-book is maintained, by entry in the notice
book.
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10A. POWER TO REQUIRE FROM EMPLOYERS STATEMENTS REGARDING FATAL
ACCIDENTS
(1) Where a Commissioner receives information from any source that a workman has died as
a result of an accident arising out of and in the course of his employment, he may send by
registered post a notice to the workman’s employer requiring him to submit within thirty
days of the service of the notice, a statement, in the prescribed form, giving the
circumstances attending the death of the workman, and indicating whether, in the opinion
of the employer, he is or is not liable to deposit compensation on account of the death.
(2) If the employer is of opinion that he is liable to deposit compensation, he shall make the
deposit within thirty days of the service of the notice.
(3) If the employer is of opinion that he is not liable to deposit compensation, he shall in his
statement indicate the grounds on which he disclaims liability.
(4) Where the employer has so disclaimed liability, the Commissioner, after such enquiry as
he may think fit, may inform any of the dependants of the deceased workman that it is
open to the dependants to prefer a claim for compensation, and may give them such other
further information as he may think fit.