Employees in high-risk businesses may experience work-related health issues and accidents. The Workman Compensation Act, 1923, addresses concerns about lost income and healthcare costs in such cases. Also, renamed the act as Employees Compensation Act, 1923.
As per the rules in the Workmen Compensation Act, workers who get injured at work or experience certain work-related illnesses might be eligible to get compensation from their employer. The Workmen Compensation Insurance policy determines the compensation to be paid.
Additional Read: How to Calculate a Settlement in a Workman’s Compensation Injury?
How is a Workman Compensation Insurance policy compulsory?
Acquiring workmen’s compensation insurance from insurance companies is the most effective method for employers to safeguard themselves from these legal responsibilities. The policy is important for both employers and workers/employees.
In India, businesses such as manufacturing, mining, construction, transport, factories, and plantations with more than 20 workers. They must have workers’ comp insurance, as mandated by the Workmen Compensation Act, 1923. This is to safeguard the rights of employees.
More than being a statutory requirement, the policy is extremely beneficial for both employees and employers. The workers’ comp policy aims to protect the ‘workmen,’ defined in the Workmen Compensation Act, 1923, in these situations.
- Workplace accidents resulting in death
- Workplace accidents resulting in disability (total or partial)
- Injuries to workmen on duty during the employment
- Professional illnesses listed under the Workmen Compensation Act, 1961
Importance of the WC insurance Policy–
A workmen compensation policy is compulsory for employers, specifically for companies having large labor forces. To shield themselves against the liabilities resulting from workmen’s injuries. Not being compliant with the statutory requirements can be troublesome for businesses.
The compensation, the employer pays, is in the Workmen Compensation Act. Employers can get insurance for their workers by looking at things like how much they pay, how many employees they have, the type of jobs they do, and how much risk is involved.
Schedule II of the Workmen Compensation Act, 1923 clearly defines the term ‘workmen.’ Schedule II clearly stated the list of persons entitled to receive the workmen’s compensation benefit. If a workman from the list suffers an injury, then the employer compensates them as per the WC Act.
Therefore, businesses need to have the workman compensation insurance policy. It effectively manage the consequences of accidents and illnesses occurring at work for the workers. If you’re looking to purchase workers’ compensation insurance, SecureNow can assist you. They allow you to compare insurance quotes online and help you choose the right policy with the best price and benefits.
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.
