In today’s highly competitive work environment, employees’ rights have also moved forward. Providing a safe and secure work atmosphere is one of the main responsibilities of an employer. However, one can’t deny the fact that injuries at the workplace are a common part of businesses.
To keep your business safe from expensive legal problems and compensation payments. It’s important to buy a workman compensation policy. This insurance covers an employer’s legal responsibility for the death or bodily injury of employees. Known as ‘The Employees Compensation (Amendment) Bill’.
Before we discuss the workers compensation insurance policy in detail, let’s first understand the Workers Compensation Act.
Workmen’s Compensation Act 1923
This Act applies to people employed in factories, mines, construction sites, and various other hazardous occupations.
As per the guidelines outlined in The Workmen’s Compensation Act 1923. If worker dies or becomes disabled because of work accident, employers must provide compensation to them and their families.
The compensation amount depends on the nature of the injury and the age of the worker. We’ve decided on the least and most money for when someone dies or is disabled, and we might change these amounts sometimes.
How workman compensation insurance policy can help employers?
The workmen’s compensation insurance policy provides coverage for legal liability. Concerning compensation given to employees for injuries or death resulting from accidents or work-related illnesses during their employment. Ministry of Labour oversees the compensation paid under scheme established in accordance with Workmen’s Compensation Act of India.
Injured workers and compensation are one of the major liabilities issues for any organization in India. With workmen’s compensation insurance, the employer can show that it can meet the requirements set by worker’s compensation laws.
Salient features
The workmen compensation insurance policy offers the following forms of insurance coverage:
- Table A: The insurance assists in handling legal responsibilities for employee accidents under laws. Like the Workmen’s Compensation Act, 1923, the Fatal Accidents Act 1855, and Common Law.
- Table B: Indemnity against legal liability under the Fatal Accident Act, 1855 and Common Law
- Note that employees categorized as ‘Workmen’ under the amended Workmen’s Compensation Act, 1923 may not receive Table B coverage.
Covers available under the Workmen compensation insurance policy
Basically, the benefits you get from the policy depend on the type your employer chooses. Here are some things the policy covers:
- Disabilities or Death
- Permanent total disablement
- Permanent partial disablement
- Temporary disablement
- Legal costs incurred if any
Further, the policy extends to cover medical expenses incurred for necessary treatment.
Additional Read: What are different types of medical expenses covered under workmen compensation policy?
Exclusions of the policy*
While the policy aims to provide extensive legal liability coverage, it does not cover some events.
- Any injury caused by accident or diseases directly linked to war invasion and other perils
- Any injury or accident which doesn’t cause fatality or partial disablement for a period exceeding three days
- Liability towards contractor’s employees, unless specifically mentioned
- Accidents arise under the influence of drugs or alcohol
- If there is a disregard for the safety measures
*It is not an exhaustive list, so please check the policy in detail
Recently, the Lok Sabha passed The Employees Compensation (Amendment) Bill, 2016. The new law compensates employees and their families with Rs 50,000 to Rs 1 lakh in case of work-related injuries. Furthermore, it’s important for every company or factory to display the regulations. It should be in Hindi, English, or other local languages to ensure that workers are aware of them.
Overall, the workman compensation insurance policy is a boon for both employees and employers. It gives employees several benefits which help in keeping up their motivation and reducing attrition. Similarly, employers can also protect themselves from the legal liability that may arise because of the injury of workers.
