Workers’ well-being is the main key to businesses’ long-term success. Employer needs to ensure the well-being of their employees. And, the employer is also liable to compensate them in case they suffer any injury, death, illness, or property damage due to work-related accidents. Workers’ compensation insurance is designed to provide financial assistance to employers and injured employees during such unforeseen events. However, understanding how these benefits are defined and what the duration of worker compensation benefits is, is important. Let us understand in detail.
Workers’ compensation insurance provides protection to the employer against the statutory liabilities in the following circumstances when workers are injured during a workplace accident:
- Death due to workplace accidents or hazardous work conditions
- Occupational illness
- Temporary total disablement
- Temporary partial disablement
- Permanent total disablement
- Permanent partial disablement
The Workers Compensation Act of 1923 defines the scale of coverage and the amount of compensation to be paid in each circumstance.
How long a worker can enjoy the benefit of workers’ compensation?
Workers compensation insurance is a win-win plan for both employer and worker. It gives financial protection to the employer from statutory liabilities by compensating the affected employees in a workplace accident. Though the policy covers various circumstances, how long can a worker stay on workers’ compensation depends on the type of claim made by the employee.
In case of death, The Workers Compensation Act provides compensation to the dependent family members. In the event a worker suffers an injury while performing the job. The company pays occupational injury compensation, which covers the medical expenses for treating the injury. However, if the injury arising from workplace-related accidents results in disabilities, the amount of compensation and its duration vary depending on the circumstances.
Whenever a worker suffers disability due to workplace accidents. The healthcare professional examines and issues a disability certificate mentioning the percentage level of disability. Based on this rating given by the healthcare professional, the worker compensation fund is paid. The duration of compensation also varies depending on the severity of the disablement. Based on the percentage level mentioned in the disability certificate, disability is classified as below for receiving workers’ compensation.
Let us also see how the duration of workmen’s compensation varies in each circumstance.
- Temporary total disablement
- Temporary partial disablement
- Permanent total disablement
- Permanent partial disablement
Depending on the duration/type of disability – temporary or permanent, the duration of workers’ compensation benefits is decided. For example, If the worker fractures his hand while performing his job at the workplace, the workers’ compensation is paid to him till he recovers. That means, if the disability is temporary, the worker receives the workers’ compensation benefit till there is a maximum medical improvement. Let us say the worker suffers a temporary total disability that leaves him unfit for the current job. He will receive compensation until he medically improves, and rehabilitation benefits will be provided until he finds alternative employment.
Generally, the worker can stay on workers’ compensation for three to seven years depending on the severity of the disablement suffered. However, in case of permanent total disablement, the worker can choose to go for a one-time settlement or compensation.
Conclusion
To sum up, the amount of workmen’s compensation and the duration for which workers can benefit from the workers’ compensation depends on various factors. This includes provisions under the Workers Compensation Act, percentage level of disability or severity of suffered injury. The circumstances of workers compensation claim. Workers compensation insurance typically benefits both employer and employee by providing financial assistance to workers who suffered during unforeseen workplace accidents.
