Workmen Compensation

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Benefits of a workmen compensation policy

If you are running an – be it small or big, there is always a risk, of injury to the hired workforce. Accidents at the workplace can occur at any time. The risk of accidents depends on the type of work or operations performed in your organization. Any accident makes the employer liable to pay for the medical expenses incurred. This risk factor makes it essential for you to buy a workmen compensation insurance policy from a good insurer. It provides medical coverage for the treatment of any injuries suffered by employees during their employment. WC policy is not limited to hospitalization expenses for critical injuries only. It also covers the cost of getting medical treatment on an out-patient basis.

Many employers are under the misconception that the benefits of a workmen compensation policy are limited to the medical expense coverage only, which is not true. Several other benefits exist which is why you must invest in such a policy.

Important benefits of WC policy

Here are three significant benefits related to workmen compensation insurance which you might not know:

Covers legal liabilities

Consider the below case:

There was an accident in a lock manufacturing unit where, on average,  100 people worked in plant operations. It caused critical injuries to a few employees who filed a court case against their employer. However, it became difficult for the employer   to deal with the lawsuit in the labor court. The owner found it challenging to pay for the defense costs, and also pay the compensation demanded by the injured individuals.

Buying a workmen compensation policy is highly beneficial to tackle such situations with ease. The policy will help cover the employer’s legal liability arising from a workplace accident. It will also pay for the defense costs as well as the worker’s compensation benefits as decided by the labor court. The legal liability coverage would imply significant money savings for an employer.In case of no WC policy, an employer would have to pay for all the costs by himself.

  Coverage for occupational diseases

Some workplaces run processes that can have adverse effects on the overall health of the hired workers. For instance, a metal factory using chemicals to finish their products can cause harm to the skin of the workmen. Similarly, there are other occupational diseases that can cause health hazards to hired workers. Diseases such as asthma, allergic dermatitis, musculoskeletal disorders,   can occur because of work-specific or work-related conditions.

An employer need not worry about occupational diseases as workmen compensation insurance usually cover these. Ask your prospective insurer about the inclusion clauses related to these diseases. These clauses  are specific to the industry the business operates within.  In case of exclusion for certain specific diseases   the employer can ask the insurer for add-ons to cover these diseases. Furthermore, if these diseases lead to critical health conditions, then the injured will get compensation as per labor laws.

Premium determined by various factors

Some employers believe that a one-size-fits-all policy offers adequate workmen compensation benefits. Unfortunately, this is a myth. In general, the accidental risk varies from one business to another. Policy coverage depends on several factors, including the employer’s industry classification, the nature of work and so on. The policy duration, safety standards and coverage required also determines the premium. Accordingly, the policy specifics and premium to be paid to buy workmen compensation insurance varies.
Your past claim experiences also can have an impact on the premium you need to pay for the WC policy.

Conclusion

For every employer, choosing a suitable policy to get adequate workmen compensation benefits is crucial.  Complete the required research about the policy coverage, its exclusion clauses, and the various insurance companies that offer this type of insurance.

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