A workmen’s compensation policy covers the financial liabilities on behalf of organizations in case of injury or death of workers during their employment course. As per the statutes of the Workmen’s Compensation Act, 1923, organizations are financially responsible for compensating injured workers. Therefore to take care of this financial responsibility, a workmen’s compensation policy is designed.
Let’s have a look into the important workmen compensation features which make the policy distinct in the coverage provided –
Policy exclusions
The policy exclusions are:
1. Attempted suicide or deliberate self-inflicted injuries
2. Injuries suffered outside of work
3. Agreed compensation payable to employees as per an agreement
4. Injuries suffered under the influence of intoxicants
Policy extensions
Some common extensions include coverage for contractual employees, medical costs, and occupational diseases.
Benefits of worker insurance for employer and employee
The workers compensation policy or employee compensation insurance benefits both the employer and the employee in the form of financial liability & compensation for any contingencies suffered at the workplace.
Important clauses of workmen compensation policy
Indemnity clause
The policy will only pay the actual costs incurred by the employer in litigation, penalties, and court awards.
Average clause
The sum insured is modified by the insurance company to cover the changed number of employees, subject to certain terms and conditions.
Contribution clause
In the case of multiple policies, the claim amount would be shared by insurance companies in the ratio of the coverage offered. The financial impact of not placing this insurance correctly can be severe.
Different industries can have their reason to buy this policy. Industries that involve high labour-intensive work such as construction, mining, transportation & logistics, need the most as the risk of an accident or mishappening during the work is high.
How SecureNow can help you with this policy?
SecureNow is an insurance broker that has tied up with leading general insurance companies. With us, you can compare online insurance quotes.
Deeply researched workmen compensation quotes along with their coverage details are provided on our website. You can compare and buy workers compensation policy online with minimal hassles and receive the risk cover note instantly.
