WORKMEN'S COMPENSATION ACT (Payment of damages)

[Mr Speaker in the Chair]

Mr L. P. Rodrigo asked the Minister for Labour if he will consider introducing legislation to amend section 41 of the Workmen's Compensation Act or any other appropriate sections thereof or other legislation to provide that, in cases where the injured workman has instituted legal proceedings to recover damages or compensation independently of the Act, payment of such damages as are awarded by the Court or compensation secured which exceed $500 shall be made to the Public Trustee as trustee for the person entitled to the benefit.

The Parliamentary Secretary to the Minister for Labour (Mr Fong Sip Chee) (for the Minister for Labour): Mr Speaker, Sir, I have been asked by my Minister to reply.

Section 41 of the Workmen's Compensation Act, besides giving an injured workman the choice of either claiming compensation under the Act or instituting action for damages in common law, also at the same time reserves his right to revert to the Workmen's Compensation Act should he fail in common law. Any payment of compensation under the Act is made by the Commissioner directly to the claimants and, unless he directs otherwise, no insurer or employer may pay directly to the claimant. The Commissioner, however, cannot withhold any sum due to a claimant except minors in respect of whom he holds the amounts due in trust until they reach the age of 18.

It is agreed that neither under the present Workmen's Compensation Act nor in common law are safeguards provided to prevent a claimant from being exploited by unscrupulous persons or from squandering away the lump sum awarded to him. However, the present Act is being completely revamped. The new Bill not only provides for increased quantum of compensation but would also empower the Commissioner for Labour to withhold such sum in the interests of the claimant. He can, under the new Bill, make monthly payments instead of one lump sum, thereby ensuring that the claimant is assured of a steady monthly income.

I do not think that section 41, as explained above, is the most appropriate section to amend in order to make provision that if any payment of compensation exceeding $500 is made to a workman by his employer in common law, then it should be made to the Public Trustee.

Mr N. Govindasamy (Telok Blangah): Mr Speaker, Sir, is the Parliamentary Secretary in a position to inform this House when this new Bill will be introduced?

Mr Fong Sip Chee: Sir, this Bill is in an advanced stage of drafting, and as soon as it is ready it will be tabled in this House for the consideration of Members.