The Workers’ Compensation Act ensures compensation and support for workers injured on the job. It applies to various industries including factories, mines, etc. It provides financial aid and medical care. The Employee compensation policy provides protection to employees against work-related injuries and illnesses. It aims to relieve workers of the financial burden by holding employers accountable for work-related injury compensation. But changes of rules in Workmen’s compensation policy -2020 taken place.
Workmen’s Compensation Regulations in 2020 – Change in Rules
In 2020, India made significant revisions to its workmen’s compensation regulations to ensure equitable compensation for employees in the event of injury or illness. The government implemented measures requiring employers to provide medical care to employees for accidents or occupational diseases, regardless of fault. Employers are obligated to make lump sum payments for work-related accidents resulting in death or total disability.
In a positive development for workers, the Central Government revised the calculation rules for employee compensation under the Workmen’s Compensation Act, of 1923. As per a notification issued on January 3, 2020, the wage threshold considered for compensation calculations was increased from Rs. 8,000 to Rs. 15,000, according to the Ministry of Labour and Employment. These changes aim to instil confidence in Indian workers that they will receive appropriate compensation if unfortunate incidents occur during their employment.
Since 2010, the Workmen’s Compensation Act, of 1923 has been renamed the Employee’s Compensation Act. It provides compensation to employees who experience total or partial disablement or death due to work-related accidents. Employers are responsible for paying the compensation, and employees eligible for compensation from the Employees’ State Insurance Corporation (ESIC) cannot claim compensation under the Employee’s Compensation Act, of 1923.
The Extent of Coverage Provided by the Workmen’s Compensation Act
workmen’s insurance policy is mandatory coverage that protects employees by providing financial support for medical expenses and disability payments resulting from workplace accidents or occupational diseases. Employers are required to pay annual premiums based on the number of employees and the nature of their work. This insurance not only safeguards workers but also benefits employers, as they may be eligible for tax credits. It is important for employers to ensure that workers have access to necessary resources for prompt action in such situations to prevent further complications.
This workmen insurance policy addresses employers’ legal liability under the Workmen’s Compensation Act of 1923 and the Fatal Accident Act of 1855. It covers various forms of disablement, including permanent and temporary, and extends to medical expenses, occupational diseases, compressed air diseases, and acts of terrorism. Having Workmen’s Compensation Insurance demonstrates employers’ commitment to the well-being and financial security of their workforce.
The change in rules regarding the compensation calculation can benefit the employees to get higher coverage in the event of work-related injuries and illnesses.
The Premium for Workmen Compensation Policy
Employers can use a workmen compensation policy premium calculator to determine competitive premiums for workers compensation insurance coverage. The calculator considers state laws, regulations, and variables that affect policy costs. WC insurance offers two coverage options: Table A for accidents and Table B for liability. Premiums depend on business type, employee count, worker location, occupational disease coverage, wages, and policy duration. Occupational tariff rates from the IIB determine premium ratings, with a maximum monthly wage of Rs. 12,000. Medical expenses and occupational diseases affect premiums. The calculator provides accurate premium estimates for comprehensive coverage considering the change in rules to the WC insurance policy.
The changes in rules in the Workmen’s Compensation Policy -2020 have made a significant impact in safeguarding workers and providing essential assistance. These changes reflect a shift towards prioritising workplace safety and employee well-being. We hope these modifications will continue to prioritise the rights and welfare of workers who experience injuries, disabilities, or fatalities while on the job. The Workmen’s Compensation Act, of 1923 demonstrates employers’ commitment to compensating and supporting workers affected by workplace accidents.
About The Author
Rahul Kumar
MBA Finance
With a wealth of experience in the insurance industry, Rahul is a seasoned writer specializing in articles related to workmen compensation policies (WC policies) for SecureNow. With 12 years of experience in the field, he has acquired in-depth knowledge and expertise in workmen compensation insurance, understanding its complexities and nuances. Their insightful articles provide valuable insights into the importance of WC policies for businesses and employees alike, offering practical advice and guidance on navigating the intricacies of insurance coverage. Trust him to deliver informative and engaging content, backed by years of experience and a passion for educating readers about insurance-related topics.
