The law prescribes all organizations employing workmen for their business operations have a workmen’s compensation policy. It is an employer’s legal responsibility to protect their workmen against physical injuries or death suffered during the course of employment. In case the employee faces death, disablement, or injury due to the nature of his/her work, the employer has to bear medical expenses. They become liable to pay compensation for the contingency suffered by the employee. A workmen compensation policy covers this liability faced by the employer and pays the compensation to the injured employee or the deceased’s workman’s heir. In this article, we will come to know the difference between fatal and non-fatal accidents in a workmen compensation policy read further.
Inclusions of WC policy
A workmen’s compensation policy covers the following instances –
- Accidental death
- Permanent total disablement
- Permanent partial disablement
- Temporary total disablement
- Diseases suffered by the employee due to the nature of work
- Any other type of personal injuries suffered due to work
These injuries, death, and disablements should have occurred due to an external, violent, and unforeseen accident. The claim for policy benefits arises only if any worker faces physical injuries due to accidents at the workplace.
Two types of accidents can happen – fatal and non-fatal.
Fatal Accidents:
A fatal accident is one where there is death or a high risk of losing the employee’s life. In case of a fatal accident, the employee might die or suffer severe disablement.
Non-fatal Accidents:
Non-fatal accidents, on the other hand, are those accidents that don’t have a high probability of death. In such cases, the employee or the workman survives. However, they have to suffer disabilities or any type of personal injury.
Both fatal and non-fatal accidents are covered by a workmen’s compensation policy, provided such accidents result in any of the above-mentioned contingencies. Fatal accidents may result in death, permanent total disablement, permanent partial disablement, or fatal injuries. If any of these contingencies occur, the workers’ compensation policy would pay the claim faced by the company.
In the case of non-fatal accidents, the covered contingencies might not occur. The employee might not face any type of disablement or injury from such accidents. If the employee or workman suffers from disablement that does not last for more than 3 days, the claim would not be paid. Many workmen’s compensation policies do not usually cover non-fatal accidents unless they cause a disablement lasting for more than 3 days.
Understanding the distinction between fatal and non-fatal accidents is crucial in workmen compensation cases. Proper knowledge helps ensure appropriate compensation and support for workers and their families during challenging times.
Understand WC policy coverage for fatal & non-fatal accidents before buying
Companies should, therefore, understand the scope of coverages offered by a workmen’s compensation policy. They should take note of the types of contingencies covered under the policy. It is important to know the types of accidents covered by the policy. If the policy does not cover non-fatal accidents then the medical costs for injuries arising out of such accidents are not paid. However, since non-fatal accidents do not result in major injuries, the company can expect to face minimal liability, which it can usually pay on its own.
Therefore, a WC Insurance policy covers major instances of fatal and non-fatal accidents related claims that lead to financial distress for the worker and company.
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.
