A workmen’s compensation policy provides a wide scope of coverage for the insured organization. The policy covers financial liabilities in case of physical injuries, permanent or temporary disablements and even death of the organization’s employees due to unexpected mishaps. Hence, it provides financial relief to organizations.
So, deciding on the right insurer to provide the workers’ compensation policy is critical. The right choice of insurer will enable an employer to adequately cover the compensation awarded to employees by the Workers Court in case of unforeseen perils.
For arriving at the best possible insurer for your worker’s compensation policy, make sure :
The insurer must be competent
With a large number of private and public sector players, you have to do in-depth research on insurers when choosing the right one. Make sure to get an insurer with a wide presence, financial strength, requisite infrastructure to support the claim and an understanding of the operating procedures of workers’ compensation insurance.
Understand well the Workers’ Compensation Act
The cover and risks of this policy differ widely depending on the industry. Broadly speaking industrial & manufacturing industries face higher value and more frequent claims. Also, the workmen’s compensation policy premium varies for different industries. For instance, premiums for firms in mining or transport may be much higher than premiums say for an advertising firm. As the firms in the former industry are engaged in perilous nature of work while the latter industry is considered less risky.
The insurer you select must understand these differences and be willing to engage with you on industry and risk differences.
The insurers must offer comprehensive cover
The policy should cover legal liability under the Workmen Compensation Act of 1923 and subsequent amendments. Claims under the Fatal Accident Act, 1855 and common law should also be covered. The policy should include death, permanent disability, partial disability, and temporary total disability, and should have an option to extend the cover for an ambulance and medical expenses.
Fast issuance of policy
In cases related to workers’ compensation, cover notes should be issued quickly upon request. Look for agencies and insurers that accept claims 24 hours a day via e-mail and/or 24-hour toll-free telephone service.
Reduction of accidents
The insurer should provide value-added services like best practices in the concerned industry to avoid disaster scenarios in the future.
Streamlined claims support
The insurer should have a mechanism in place for the processing of all aspects of your worker compensation claim. A single point of contact and online and offline presence is the real value added to the claim processing.
Case on Selecting Insurer for Workers’ Compensation Insurance
Cinderella Toys Pvt. Ltd. is a manufacturing and sales firm for children’s toys. It employs 15 permanent workers and some 6 – 7 temporary workers for a few months in the year. The owner of Cinderella Toys, Sanjeev Aggarwal, is looking to buy a workers’ compensation insurance policy to cover his responsibility of compensating workers for injuries or health issues sustained during work.
He has two choices:
- The Insurer promises to discount the premium but will not include any critical illnesses or medical expenses incurred by workers.
- The insurer will charge about 15% higher but cover liabilities under the Act as well as the treatment and transportation costs of the injured worker(s).
Also, managing the policy is easy with the second insurer. Sanjeev can pay the premium online, through their web portal and get 24×7 claim support. Both companies promise hassle-free maintenance of the policy. However, as the first company does not offer online management, Sanjeev has decided to go with the second option. That’s the right choice.