The Employees Compensation Act, 1923
CHAPTER II: EMPLOYEE’S COMPENSATION
Section 14: Insolvency Of Employer
Bare Act
(1) Where any employer has entered into a contract with any insurers in respect of any liability under this Act to any employee, then in the event of the employer becoming insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a company, in the event of the company having commenced to be wound up, the rights of the employer against the insurers as respects that liability shall, notwithstanding anything in any law for the time being in force relating to insolvency or the windi… Read the complete text with KanoonGPT Pro.
Simplified Act
Section 14 Simplified:
(1) If an employer who should pay workers' compensation goes bankrupt or tries to settle debts, and they have insurance for this, the employee can claim directly from the insurance company. The insurance company steps into the e… Read the complete text with KanoonGPT Pro.
Explanation using examples
Imagine John, an employee of XYZ Corp, suffers an injury while working, and is entitled to compensation under The Employees Compensation Act, 1923. XYZ Corp had previously taken out an insurance policy with ABC Insurers to cover such liabilities. Ho… Read the complete text with KanoonGPT Pro.
