Dear Seniors,
Please help me with the following matter. One of our employees met with an accident and passed away while working on our power project. We have all our employees covered under the Workmen Compensation policy in accordance with the Employee Compensation Act of 1923. We have already submitted a claim against our Workmen's Compensation policy with all the necessary documents. However, the Insurance officer is requesting Form No. 24 with the factory inspector's signature, which we have not yet informed the factory inspector about.
Based on my understanding and knowledge, the factory act does not apply to construction companies. Please advise me on what steps I should take in this regard.
Regards,
Abhijeet Hire
901143686
From India, Aurangabad
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3Please help me with the following matter. One of our employees met with an accident and passed away while working on our power project. We have all our employees covered under the Workmen Compensation policy in accordance with the Employee Compensation Act of 1923. We have already submitted a claim against our Workmen's Compensation policy with all the necessary documents. However, the Insurance officer is requesting Form No. 24 with the factory inspector's signature, which we have not yet informed the factory inspector about.
Based on my understanding and knowledge, the factory act does not apply to construction companies. Please advise me on what steps I should take in this regard.
Regards,
Abhijeet Hire
901143686
From India, Aurangabad
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Dear Abhijeet ji,
It seems your power project is not commissioned, and it is still under construction. Therefore, the Factory Act is not applicable to you. However, the Building and Other Construction Workers (BOCW) Act of 1996 is applicable, and under this Act, you are liable to submit reports of accidents and dangerous occurrences to the relevant authority.
From India, Mumbai
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It seems your power project is not commissioned, and it is still under construction. Therefore, the Factory Act is not applicable to you. However, the Building and Other Construction Workers (BOCW) Act of 1996 is applicable, and under this Act, you are liable to submit reports of accidents and dangerous occurrences to the relevant authority.
From India, Mumbai
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Factory Act is applicable for power plants. In my view, it does not matter whether it is commissioned or not. I hope you have the valid Factory License in place.
Intimation in Form-24 is mandatory within 24 hours of the fatal accident to the factory inspector. You have already defaulted on this. However, you may still submit Form-24 to the factory inspector. As it is a medico-legal case, it is better to be late than never. Failing to do so may further complicate the case for your company.
From India, Mumbai
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Intimation in Form-24 is mandatory within 24 hours of the fatal accident to the factory inspector. You have already defaulted on this. However, you may still submit Form-24 to the factory inspector. As it is a medico-legal case, it is better to be late than never. Failing to do so may further complicate the case for your company.
From India, Mumbai
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Dear Dixon Ji,
I appreciate your views. The definition of a manufacturing process covers each and every activity. A manufacturing process means a process by which a form of any substance is changed to another, as defined by SC London, as told to me by someone. Then why is the construction activity not considered a manufacturing process and does not come under the ambit of the Factory Act?
Do you have any cases in which a project under construction has been granted a Factory License? If yes, please share with me as well as with this forum.
In the meantime, I am drawing your kind attention to a judgment by the Orissa High Court in 2010 on this subject. If I am not mistaken, it pertains to the matter of Sterlite. The said judgment was uploaded by me once, but right now, it is not traceable.
From India, Mumbai
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I appreciate your views. The definition of a manufacturing process covers each and every activity. A manufacturing process means a process by which a form of any substance is changed to another, as defined by SC London, as told to me by someone. Then why is the construction activity not considered a manufacturing process and does not come under the ambit of the Factory Act?
Do you have any cases in which a project under construction has been granted a Factory License? If yes, please share with me as well as with this forum.
In the meantime, I am drawing your kind attention to a judgment by the Orissa High Court in 2010 on this subject. If I am not mistaken, it pertains to the matter of Sterlite. The said judgment was uploaded by me once, but right now, it is not traceable.
From India, Mumbai
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Dear Abhijeet,
Mr. Keshav is very correct. A power plant project under construction does not fall within the purview of the Factories Act until it is either commissioned, or the power plant is an extension project of an already running plant in the same precinct. Where the Factories Act applies, the BOCW Act does not apply, and vice versa. However, the content of the acts is almost similar, and the authority for both acts is the Inspector of Factories.
Secondly, concerning the question of informing the Factories Inspector, it is stated that both Section 88 of the Factories Act, 1948, and Section 39 of the BOCW Act, 1996, discuss informing the authorities within stipulated time and in a prescribed form.
Now, the suggestion is to proceed and inform the Inspector of Factories in the prescribed form and hand over the written forms to the Insurance department.
Hope you might have completed other formalities of informing the death to other authorities as well as handing over the necessary supporting documents to the Insurance company.
P. Vathiraj
Dy. Manager (Personnel)
From India
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Mr. Keshav is very correct. A power plant project under construction does not fall within the purview of the Factories Act until it is either commissioned, or the power plant is an extension project of an already running plant in the same precinct. Where the Factories Act applies, the BOCW Act does not apply, and vice versa. However, the content of the acts is almost similar, and the authority for both acts is the Inspector of Factories.
Secondly, concerning the question of informing the Factories Inspector, it is stated that both Section 88 of the Factories Act, 1948, and Section 39 of the BOCW Act, 1996, discuss informing the authorities within stipulated time and in a prescribed form.
Now, the suggestion is to proceed and inform the Inspector of Factories in the prescribed form and hand over the written forms to the Insurance department.
Hope you might have completed other formalities of informing the death to other authorities as well as handing over the necessary supporting documents to the Insurance company.
P. Vathiraj
Dy. Manager (Personnel)
From India
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Abhijeet,
Please check the attached PDF file of Form 24 under The Factories Act. Your insurance company will demand further for salary and wages register, attendance roll, Form 13 under The Payment of Wages Act duly certified by a chartered accountant, and proof whether your company has paid half wages for accident leave, etc. Start preparing all.
All the best.
From India, Mumbai
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Please check the attached PDF file of Form 24 under The Factories Act. Your insurance company will demand further for salary and wages register, attendance roll, Form 13 under The Payment of Wages Act duly certified by a chartered accountant, and proof whether your company has paid half wages for accident leave, etc. Start preparing all.
All the best.
From India, Mumbai
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Abhijeet Hire,
One of your employees met with an accident and died while working on our power project, which is unfortunate.
You have covered all our employees under the Workmen's Compensation policy as per the Employee Compensation Act of 1923, which is commendable.
Under this act, we have submitted a claim against our Workmen's Compensation policy with the required and relevant documents.
The factory is covered under the Factory Act, which is not an issue. You have the postmortem report, police panchnama report from the nearest police station, death certificate from the grampanchayat, and the last wages register for that particular month. These documents will be sufficient for the insurance claim process.
RAMESH LAWANDE
From United States, San Jose
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One of your employees met with an accident and died while working on our power project, which is unfortunate.
You have covered all our employees under the Workmen's Compensation policy as per the Employee Compensation Act of 1923, which is commendable.
Under this act, we have submitted a claim against our Workmen's Compensation policy with the required and relevant documents.
The factory is covered under the Factory Act, which is not an issue. You have the postmortem report, police panchnama report from the nearest police station, death certificate from the grampanchayat, and the last wages register for that particular month. These documents will be sufficient for the insurance claim process.
RAMESH LAWANDE
From United States, San Jose
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Dear Abhijeet,
As a matter of fact, before the construction of any factory, the occupier has to obtain approval from the Factory Inspector as per the Factories Act. Hence, the Principal Employer has to insist that the Contractor submit the Accident/Incident Report in the specified format under the BOCW Act to the Director of Industrial Safety and Health/Factories Inspector, who has been given additional responsibility (by the concerned State Government) to oversee the BOCW Act.
I hope you understand the reason behind Mr. Keshav and Mr. Vathiraja's instructions on proceeding with what the Workmen Compensation Commissioner has advised.
From India, Kumbakonam
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As a matter of fact, before the construction of any factory, the occupier has to obtain approval from the Factory Inspector as per the Factories Act. Hence, the Principal Employer has to insist that the Contractor submit the Accident/Incident Report in the specified format under the BOCW Act to the Director of Industrial Safety and Health/Factories Inspector, who has been given additional responsibility (by the concerned State Government) to oversee the BOCW Act.
I hope you understand the reason behind Mr. Keshav and Mr. Vathiraja's instructions on proceeding with what the Workmen Compensation Commissioner has advised.
From India, Kumbakonam
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Dear Abhijeet I fully agree with Mr.Korgaonkar views. Ramnath
From India, Lucknow
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From India, Lucknow
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Dear Abhijeet,
Since the worker has passed away in the accident, you must report the fatal accident to the relevant Commissioner for Workmen's Compensation (now known as Cow Commissioner for Employees' Compensation) using Form E, along with a copy of the insurance policy. The Commissioner will then handle the proceedings and issue an order after conducting necessary hearings against the Insurance Company. The Insurance Company is obligated to pay the claim, along with interest from the date of the accident. Additionally, the claim amount will be paid by the Insurance Company to the Commissioner, not directly to you or the legal heirs of the deceased.
From India, Kozhikode
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Since the worker has passed away in the accident, you must report the fatal accident to the relevant Commissioner for Workmen's Compensation (now known as Cow Commissioner for Employees' Compensation) using Form E, along with a copy of the insurance policy. The Commissioner will then handle the proceedings and issue an order after conducting necessary hearings against the Insurance Company. The Insurance Company is obligated to pay the claim, along with interest from the date of the accident. Additionally, the claim amount will be paid by the Insurance Company to the Commissioner, not directly to you or the legal heirs of the deceased.
From India, Kozhikode
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