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Employees Entitled To Interest On Medical Reimbursement From The Date Of Claim Under Employees Compensation Act, 1923

Source:

Cllra Newsletter

 

In the case of Venugopalan V. The Managing Partner, the High Court of Kerela noted in an order dated October 11, 2023, that an employee is entitled to claim interest on medical reimbursement under Section 4A of the Employees Compensation Act, 1923 from the date of making claim before the Compensation Commissioner, not from the date of the accident. Section 4A of the ECA 1923 deals with the instances of providing interest where the employer has not paid the compensation to the employee.

 

In the current instance, the appellant filed an application with the Employees Compensation Commissioner (Industrial Tribunal) in Thrissur in 2016 for compensation for functional disability received in an accident while on the job in 2011. However, the aforementioned commission did not pay interest on the medical reimbursement, as required by Section 4A(3)(a) of the Employees Compensation Act of 1923. Thus, an appeal was preferred. The High Court of Jharkhand, allowed the appeal in part and ordered for payment of interest on medical reimbursement at the rate of 12% (Twelve Percent) from the date of petition till realization since it found that the delay in filing the petition can be attributed to the applicant.

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