Workmen Compensation Insurance Policy

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Frequently Asked Questions

Workers and employees are under constant risk of suffering from employment-related hazards during their service. Often laborers have the highest probability of injuries or death on the work site. So, this makes the organization liable to look after the financial security of the workers and their family in case of an unfortunate case of workplace death or disability. Hence, the workmen compensation. This compensation protects the worker and their family lawfully and also helps the organization meet their legal liabilities in case of any adversity.

Under the Workmen Compensation Act,1923 people working in factories, plantations, mines, construction sites, mechanically propelled vehicles, and hazardous premises are considered as workmen. This Act is also extended towards railway employees and IT workers.

As per the Ministry of Labour and Employment and the Workmen’s Compensation Act, all the employees who suffer partial or total disability or die because of an accident while at their workplace are eligible for compensation.

Yes, the Workmen Compensation Act, 1923 started to be also known as the Employee Compensation Act.

Yes, Workmen Compensation Act is mandatory in India and provides a compulsory form of insurance that provides replacements for wages and medical benefits to workers/employees during their course of employment against accidental injuries or death at the workplace.

Here are some of the reasons why all employers should buy a worker’s compensation:

Workers compensation insurance can protect your business from lawsuits related to employees' injuries and resulting financial losses

Many workmen compensation policies will cover temporary and contract workers

By having workers compensation policy in place, you are protecting both yourself and your employees

If the worker is unable to work due to an injury, then this workmen compensation policy will provide the insured with a monthly income until the worker returns to work

Workman Compensation insurance also covers death benefits if an employee dies while on the job.

Fines and penalties for not having employee compensation under the employee compensation Act can be very expensive, so it is better to purchase this insurance policy.

As per workmen compensation act, any organisation or enterprise having more than 20 employees must mandatorily have employee’s compensation. This mandate by the Employees' State Insurance Act, 1948 ensures that employees and workers are covered under this insurance benefits from their employers.

To register for WC Policy, an applicant must follow the instructions provided below:

You must first visit the official website of your respective state Labour Department.

On the website’s homepage, you need to locate the online registration and renewal options and select that option.

A pop-up will appear with all the instructions on the Labour Act management page. You must read and understand all the instructions carefully.

Then you proceed to click on “New Registration” to register on the website.

You will be provided the option to enter your desired user id and your desired password. After successfully creating a user ID and password, you must enter the same on the homepage.

Enter credentials and click the login button.

Next, on the form, you must input all your personal and requested information. Then, upload the required files and click the submit button. button.

Pay the charges as applicable and save the acknowledgement number/receipt.

As per the Employees Compensation Act, in case of accidental death of an employee at their workplace, the dependents of the employee are eligible for a death benefit amount equal to 50% of the monthly wage of the deceased employee multiplied by the relevant factor, or an amount of 1.4 lakh, whichever is higher.

The Workmen Compensation policy covers below points:

Death benefit to the beneficiaries of employee in case of unfortunate death of an employee at the workplace
Covers for the statutory liabilities of the employer in case of any adversity at the workplace

The sum assured depends on the salary of the workers. When a company wants to buy workers compensation insurance, it should disclose the number of workers by type and their average monthly salary. Based on this the premium is calculated.

Medical expenses” is an add-on under the policy. You can choose a sum assured up to 50,000 for this extension. A separate loading is applied for the same. Similarly, “occupational diseases” is an extension under the policy.

Workers compensation insurance’s pricing is based upon the tariff rates. As of today, insurers offer discounts on the erstwhile tariffs. Rates displayed on the SecureNow portal are net of such discounts.

The maximum amount of wage to be considered for the calculation of WC Policy or Employee Compensation is Rs. 12,000 p.m. and for the additional wage the premium should be estimated based on 6.25% of the book rate for the occupation, subject to the following minimum limits: 2 per mile (thousand) per annum for workers engaged in manual labour.

Depending on the risk of the occupation, WC Policy will range between Rs. 10 to Rs. 170 per thousand sum-insured. This wide range is because an employer, you may also have employees working with varying degrees of risk across your business.

There are a lot of insurance companies that offer Workmen/workers compensation insurance policies online and offline. We offer you methods of comparison of quotes for workmen compensation insurance from various insurance providers based on a few questions such as: sector of employment, employee categories and number of employees and offer you quotes online directly.

A lot of insurance companies offer workmen compensation insurance policies. We should consider factors such as: the coverage offered, premium charged, claim settlement ratio, suggestions provided by the insurer as some of the parameters for deciding on which insurer to choose. SecureNow has considered all these factors to recommend and display these insurers on our website.

Both categories of insurers can be good depending upon the nature of work, size of operation and frequency of past claims.

It is always a good idea to compare the workmen compensation policies from various insurance companies before deciding on a policy. Online the comparison becomes easier and faster. The factors that you should consider, as parameters of comparison, to decide on an insurance company are: coverage offered, premium charged, claim settlement ratio and quality of documentation. As a reputed insurance broking firm, we can always do the comparison for you and provide you with best possible rates.

The information required for providing quotations for workmen compensation insurance varies with insurance companies. Some of the basic information required can be: industry of operation, number of workers based on departments and average monthly salary of the employees.

We only need to submit the PAN card and GST certificate of the company while buying workmen compensation insurance policy.

One can purchase Workmen compensation policy online any time of the day, even on public holidays, which is not possible in offline buying. To purchase the policy online, you can follow the basic steps:

Visit securenow.in

Under Group Insurance, select Workmen Insurance

Fill in the basic details and get best quotes

Click on buy the plan

Fill out the form and submit it along with the required documents

Pay the premium to close the process.

As per Workmen Compensation Act, all employees working in mines, factories, plantations, construction establishments, oilfields, etc. come under the purview of the Act. Further, it also applies to establishments which are under Schedule II of the Worker's Compensation Act. The act applies to persons who are employed and are working abroad.

Below steps are necessary to file a claim under workmen compensation insurance

Inform SecureNow and the insurer if there has been an accident that is likely to result in a worker claim
Inform the insurance company if any worker has approached to claim for a workmen compensation insurance
Contact the supervisor (who is present at the premises) immediately, at the time of the accident
Submit a duly filed and signed claim form to your insurance company or broker
A notice, if sent by the workmen commission, should be submitted to the insurance company
Insurance companies arrange for a claim inspection
Following the inspection, the insurance company would file a report. Based on the report, insurance company would pay the claim

The below documents have to be submitted for making claims under workmen compensation insurance policy.
> Duly filled and signed claim form
> A declaration report
> Any claim related report, as required by the insurance company
> In case of partial disablement of employee at the workplace - all original medical bills and diagnostic reports clearly stating disablement and the reason for it
> In case of permanent disablement of employee at the workplace – all medical bills, diagnostic reports and an agreement paper between employer and disabled employee
> In case of death of an employee at the workplace – additional documents such as: copy of death certificate, post-mortem report, witness statement (if available), copy of FIR

Compensation for death
> Up to Rs. 5000 as funeral expense
> 50% of Monthly Salary X Relevant factor based on age of the worker or 1,40,000, whichever is higher

Compensation for permanent total disablement
> 60% of Monthly wage X Relevant factor based on the age of the worker or a 1,20,000, whichever is higher

Compensation for permanent partial disablement
> This is calculated pro-rata based on the loss of earning capacity of the worker due to the injury
> The factor multiplied to the monthly wage would depend upon the nature of disability
> Some of these are defined in the Workmen Compensation Act, and other specific cases depend upon assessment by a qualified medical practitioner.

Compensation for temporary disablement
> Compensation payable half-monthly
> 25% of Monthly wage, payable on the 16th day from the date of disablement
> If disablement continues for 28 days or more, the workers compensation will be payable from the date of disablement

Insuropedia

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What is indemnity in Workers Compensation Insurance?

The indemnity clause entitles workers to get compensation for lost wages that they are otherwise capable of earning while recovering from a work-related accidental injury/illness. In workers’ compensation insurance, ‘to indemnify’ means to make payments to the injured or sick employee or to their family members[…]

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According to the Workmen’s Compensation Act, 1923, Factories Act, 1948, and Common law, companies require to pay compensation to their employees and workers if they suffer physical injuries or death during the course of their employment. Since such injuries or deaths are uncertain, organizations face financial uncertainty. […]

How Is Premium Estimated for Worker’s Compensation Insurance?

The premium (tariff) is governed by the type of cover selected by the proposer as decided by the insurance regulator in India’s IRDA. Following two types of covers are available under Workmen (now Employees) Compensation Insurance […]

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