Today’s global work environment has turned the spotlight on employees’ rights. To safeguard organizations from the threat of costly lawsuits and other financial liabilities insurers offer the Workmen Compensation Insurance Policy (WC Policy). It covers the statutory liability of an employer for the death, injury or occupational disease of an employee at the workplace. As it protects the employer from incurring heavy financial obligations, the other name for it is the employer’s Liability Insurance. The policy covers the legal costs and the compensation awarded to employees by the worker courts.
Benefits of the workmen Compensation Policy
The Workmen Compensation Insurance Policy protects the interest of the workers. The employer needs to pay for the worker’s insurance. Hence, employees need to make no contribution towards the premium payment of this policy.
The Workmen Compensation Act of 1923 is also known as Employees’ Compensation Act, 1923). The policy holds the main employer or contractor financially responsible to pay compensation to employees involved in a mishap at the workplace. . The compensation amount is decreed by the Workers Courts on a case-to-case basis. The worker’s court decides the compensation after analysing various factors like the nature of the injury, average monthly wages, worker’s age and so on. As there is no upper limit on the liability, a WC Policy comes as a beneficial plan. It helps to ease the financial burden on the employer. In other words, Worker Insurance covers the liability of the employer.
Who Does the Workmen’s Compensation Cover?
Any employer or contractor engaging as a ‘workman’ as defined in the Workmen Compensation Act can buy the policy and get financial liability coverage.. The policy benefits both the employer and employee by providing compensation and also covering the liability of the employer towards employees under the common law.
Inclusions of the worker compensation policy
The worker’s compensation largely covers the following:
- Death
- Permanent Disability -total or partial
- Temporary disablement
- Medical expenses after an accident
The WC Policy will bear the legal costs of the employer in litigation, the amount awarded by the court and other expenses.
An employer can extend the Workmen Compensation Policy to include medical expenses incurred on prolonged treatment.
Exclusions of the Workers’ Compensation Policy
- Willful disobedience of safety rules
- Accidents caused due to the consumption of alcohol or drugs
- Injuries caused outside the office premises
- Accidents involving non- workers
- It is the responsibility of a company to provide a safe and healthy working atmosphere for its employees. However, injured workers are a major financial liability for businesses. Therefore, buying the workmen’s compensation insurance policy is crucial as it helps to meet the liability, shoulder the responsibility for employees’ well-being as well as comply with the law.
Case Study
A 25-year-old worker named Ashwani Singh, employed in a cloth mill died when his glove caught in the fast-moving machine. The body got crushed in the unfortunate accident. The mill owner had to compensate the entire family as the victim was the sole breadwinner of a family of five members, so. Fortunately, the owner had bought the Workmen Compensation Insurance policy. Due to this policy, he was able to pay the compensation to the dead worker’s family for an amount of Rs 50 lakhs awarded by the courts. Insurance helps in minimizing adverse financial impact even if it cannot fill up the emotional loss. In the case of Ashwani, the insurance amount helped in meeting the financial needs of the family even in his absence.
So, first we need to understand these workmen compensation benefits and then buy a suitable Workmen Compensation policy. The financial impact of not choosing this insurance incorrectly can be severe. That’s why you must take expert advice when buying it.
To find the most relevant policy for your organization you can visit SecureNow or call 96966 83999. Get help from us to buy the best plan so that you can provide a comprehensive scope of coverage to your employees and also let you be financially secure.
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.
