Sections 73 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VII (Employee's Compensation) starts here. Section 73 requires a report within seven days of a fatal accident or serious bodily injury; section 74 makes the employer liable to pay compensation for injury by accident or a listed occupational disease arising out of and in the course of employment; section 75 covers death or injury from the collapse of an employer-provided house in a plantation.
Where any law requires notice of an accident that causes death or serious bodily injury, the person required to give it must send a report within seven days to the competent authority (s.73). The employer is liable to pay compensation for personal injury by accident or a Third Schedule occupational disease arising out of and in the course of employment (s.74(1)), except where the injury does not cause disablement for more than three days, or, short of death or permanent total disablement, the accident is directly due to drink or drugs, wilful disobedience of a safety order, or wilful removal of a safety guard. Commuting accidents count if a nexus with employment is shown (s.74(4)). Plantation house collapse is covered by s.75.
Why it matters
The old Employee's Compensation Act, 1923 is one of the nine laws repealed by section 164(1). Its replacement is this Chapter, which puts the liability on the employer. Employers who assumed compensation was purely an insurance matter need to see who is liable in law. Our labour law compliance team helps employers map these duties. For a practical comparison, see Workmen Compensation vs ESI: which applies.
Section 73: reporting fatal and serious accidents
| Point | Text |
|---|---|
| Trigger | Notice of an accident in the employer's premises resulting in death or serious bodily injury is required by any law in force |
| Duty | The person required to give the notice sends a report to the competent authority giving the circumstances, within seven days of the death or serious bodily injury (s.73(1)) |
| State option | If the State Government so specifies, the report may go instead to the authority to whom the notice is to be given |
| Extension | The State Government may by notification extend s.73(1) to other classes of premises and specify who reports (s.73(2)) |
| Exclusion | Does not apply to establishments to which Chapter IV (ESI) applies (s.73(3)) |
"Serious bodily injury" means an injury involving, or likely to involve, permanent loss of use of or permanent injury to any limb, permanent loss of or injury to sight or hearing, fracture of any limb, or enforced absence from work for more than twenty days. Do not rely on the ESI exclusion without checking that Chapter IV does apply to the establishment.
Section 74(1): liability and the three exclusions
If personal injury is caused to an employee by accident or an occupational disease listed in the Third Schedule, arising out of and in the course of his employment, the employer is liable to pay compensation under the Chapter.
The employer is not liable:
- for an injury that does not result in total or partial disablement for more than three days; or
- for an injury not resulting in death or permanent total disablement, caused by an accident directly attributable to: (i) the employee being under the influence of drink or drugs; (ii) wilful disobedience of an order expressly given, or a rule expressly framed, for safety; or (iii) wilful removal or disregard of a safety guard or device he knew was provided.
The second exclusion does not apply where the accident results in death or permanent total disablement.
Section 74(2) to (7): deemed cases and limits
| Sub-section | Rule |
|---|---|
| (2) | Accident or disease is deemed to arise out of and in the course of employment even if the employee was acting in contravention of a law or orders, or without instructions, if it would have been so deemed but for that, and the act was for the purpose of and in connection with the employer's trade or business |
| (3) | An employee in an employment in the Second Schedule who contracts a Third Schedule disease peculiar to it, after a continuous six months with that employer, is treated as injured by accident; unless the contrary is proved, it is deemed to arise out of and in the course of employment |
| (4) | Commuting between residence and place of employment for duty is deemed in the course of employment if a nexus between circumstances, time and place of the accident and the employment is established |
| (5) | Central or State Government may, on not less than three months' notice, modify or add employments (Second Schedule) and diseases (Third Schedule) |
| (6) | Save for (2), (3), (4), no compensation unless the accident or disease is directly attributable to a specific injury by accident or disease arising out of and in the course of employment |
| (7) | No compensation if the employee has filed a civil suit for damages; and no suit lies if he has claimed before a competent authority or an agreement for compensation exists under the Chapter |
Sub-section (4) is new in kind and widens exposure: a road accident on the way to or from duty can qualify, but only with the nexus shown. The text does not define nexus beyond "circumstances, time and place".
Section 75: plantation house collapse
If death or injury is caused to a worker or a member of his family by the collapse of a house provided by the employer in a plantation, and the collapse is not solely and directly attributable to a fault of an occupant or to a natural calamity, the employer must pay compensation under section 76 and the Sixth Schedule, so far as applicable. "Worker" means a person employed in a plantation for hire or reward, directly or through an agency, for skilled, unskilled, manual or clerical work, including a person on contract for more than sixty days in a year. It excludes a medical officer, persons above the monthly wage limit the appropriate Government notifies, managerial or administrative staff, and persons temporarily employed on construction or maintenance of buildings, roads, bridges, drains or canals.
Central Rules: rule 63
Under rule 63 of the Code on Social Security (Central) Rules, 2026 every employer must, at the time of employment, inform the employee in writing and by electronic means of his right to compensation under the Code, in English, Hindi or the official language of the area of employment that the employee knows. The Central Rules apply where the Central Government is the appropriate Government; in State cases the State's own rules apply.
A worked example
Ravi, a driver employed by a logistics firm not covered by ESI benefits, is hit by a truck on the road home after his shift. He is off work for six days. If a nexus between the time, place and his duty is shown, s.74(4) deems the accident to be in the course of employment; the three-day threshold is crossed, so compensation is due. Had he been absent only two days, the employer would not be liable under s.74(1)(a). If an employee wilfully removed a machine guard and is partially disabled, s.74(1)(b)(iii) relieves the employer; had he died, the exclusion would not apply. (Illustrative.)
Need help with accident reporting and compensation cover?
A written process for seven-day reports, accident registers, appointment-time notices and insurance cover reduces risk when an accident occurs. If you want your systems checked against sections 73 to 75, our labour law compliance team can assist.
Key takeaways
- Seven days to report a fatal accident or serious bodily injury; not for ESI-covered establishments.
- "Serious bodily injury" includes fracture of a limb and absence over twenty days.
- Liability needs injury by accident or Third Schedule disease arising out of and in the course of employment.
- No liability for disablement of three days or less; limited defences for drink or drugs, wilful disobedience, wilful removal of guards, not applicable to death or permanent total disablement.
- Commuting accidents are covered where a nexus is established.
- Tell each employee of the right to compensation in writing and electronically at employment (rule 63).
Read next
- Section 76: Amount of compensation
- Sections 77 and 78: Payment of compensation and monthly wages
- Workmen Compensation vs ESI: which applies
- Sections 71 and 72: Duties of employer and power of Inspector-cum-Facilitator
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.