In 2016, a worker lost his life, while several others got injured when a fire broke out in a plastic factory in Delhi’s Narela.
Even in a safe and conducive work atmosphere, accidents can happen. In such a case, the employer’s liability arises to pay the compensation to the injured. The compensation amount in some cases can run in lakhs.
Why workmen’s compensation policy is a must-have for employers?
Workmen compensation insurance is the primary method by which an employer can satisfy their obligations towards employees. This policy helps employers award the compensation and fulfil their obligations imposed as per the workers’ compensation statutes. At the time of workplace injury, the insurance company pays compensation in accordance with the Workmen’s Compensation Act of India, monitored by the Ministry of Labour.
Cases where the employer’s liability for compensation does not arise
In the case of workmen’s compensation insurance policy, the employer’s liability for compensation does not arise in the following situations-
- In case of an injury that doesn’t involve the total or partial disability of the workmen for more than three days.
- Any injury which doesn’t result in an accident or permanent total disability.
- Also, in cases when an accident happens while the workman is under the influence of drugs or alcohol.
- Even in cases where employees willfully disregard the safety rules as framed for the purpose of the safety of workmen the employee liability compensation is not payable.
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Cases where the employer’s liability for compensation arises
- When a workman engaged under the services of one or more employers in the employment specified part C of Schedule III has suffered from an ailment. Moreover, the ailment should be specified as an occupational disease. It means that the disease should arise out of and in the course of employment.
- When a worker has worked for any employer in any employment as specified in Part B of Schedule III. Also, when a worker has served one or more employers in the employment as mentioned in Part C of that Schedule. The worker should serve for a continuous period as mentioned in this sub-section for that employment.
Furthermore, if the worker contracts an ailment after leaving the job, he can seek liability compensation. However, the employee is liable to receive compensation only when it is an occupational ailment mainly arising out of the employment.
Important considerations related to employee liability compensation
- The Central or the State Government gives notification in the official gazette to add diseases peculiar to certain employments only.
- Further, no compensation will be given if the accident arises out of and in the course of the employment. Also, there will be no right to compensation if the worker has filed a suit in a civil court. In cases where workers file lawsuits for damages and injury against the employer or any other person, they cannot claim compensation.
A worker does not need to maintain a suit for damages in any court in respect of the injury –
(a) If the worker has instituted a claim for compensation in respect of the injury before the commissioner or,
(b) When a worker institutes the claim for compensation in accordance with the provisions of the Workmen Compensation Act, 1923.
How Can SecureNow help you in understanding and covering your liabilities?
It is imperative to have a workmen compensation insurance policy to shield yourself from legal liability that may arise in the case of injury or accident of a worker. SecureNow can help you find the right policy.
Read More: 10 Questions of Workmen Compensation Insurance Answered
The insurance company- SecureNow has established itself as a leading corporate insurance advisor in the market. It lets you compare online insurance quotes from different insurers to help you find the apt workmen insurance policy for yourself.
Further, advisors will assist you even after you buy the workmen compensation insurance policy. Experts of SecureNow will help you at the time of claim settlement as well and the experts will handle all your queries pertaining to insurance.
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.
