How the Employer’s Liability is Decided Under a Workman’s Compensation Policy?

One worker lost his life, while several others got injured when a fire broke out in a plastic factory in Delhi’s Narela in 2016.

Even in a safe and a conducive work atmosphere, accidents can happen. In such a case, the employer may become liable to pay the compensation to the injured, and in some cases, it can run in lakhs.

A workmen compensation insurance is the primary method by which an employer can demonstrate their ability to satisfy the obligations imposed as per the workers’ compensation statutes. At the time of workplace injury, the insurance company pays a compensation in accordance with the Workmen’s Compensation Act of India, monitored by the Ministry of Labour.

In case of workmen compensation insurance policy, the employers’ liability for compensation arises in the following situations-

  1. Employers’ Liability for Compensation= If an employee gets injured during working hours, his employer shall be liable to pay compensation. The employer shall not be liable to pay:
  • In exchange of an injury which doesn’t involve the total or partial disability of the workmen for more than three days
  • In respect of any injury which doesn’t result in an accident or permanent total disability caused by an accident which mainly arises when the workman was under the influence of drugs or alcohol at the time of the accident, or willfully disregard the safety rules as framed for the purpose of safety of workmen.

Check Now: Myths Related to Workmen Compensation Insurance Policy

  1. The employers’ liability to pay the compensation arises if it is proved:
  • That a workman while in the services of one or more employers in the employment specified part C of Schedule III has suffered from an ailment as specified as an occupational disease, and the disease has arisen out of and in the course of employment.
  • That a worker who has worked for any employer in any employment as specified in Part B of Schedule III or who have served one or more employers in the employment as mentioned in Part C of that Schedule for a continuous period as mentioned in this sub-section for that employment.

Further, after leaving the job, he contracts an ailment as mentioned in the said Part B or the said Part C as the case may be, as such occupational ailment mainly arises out of the employment.

  1. The Central Government or the State Government give notification in the official gazette to add diseases peculiar to certain employments only.
  2. Further, no compensation will be given unless the disease is directly attributable to a particular injury by accident arising out of and in the course of the employment. Also, there will be no right of compensation to a worker in respect of any injury if he has filed a suit in a civil court for damages in respect of the injury against the employer or any other person.

No suit for damages shall be maintained by a worker in any court in respect of the injury-

(a) If the worker has instituted a claim with respect to compensation in respect of the injury before the commissioner or,

(b) If a claim has been instituted for a compensation in respect of the disease or injury in accordance with the provisions of the Workmen Compensation Act, 1923.

How Can SecureNow Help You?

To shield yourself from legal liability that may arise in the case of injury or accident of a worker, it is imperative to have a workmen compensation insurance policy and SecureNow can help you find the right policy.

Read More: 10 Questions of Workmen Compensation Insurance Answered

Established itself as a leading corporate insurance advisor in the market, SecureNow can give you policy quotes obtained from different insurance companies which you can compare to find the apt workmen insurance policy for yourself.

Further, the assistance is not limited to buying the workmen compensation insurance policy only as experts of SecureNow will help you at the time of claim settlement as well. Your any query pertaining to insurance is handled by insurance experts and advisors.

A one phone call to SecureNow can take care of your insurance woes.     

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