Employees are an integral part of any organization. Employers often make effort to maintain a good relationship with their employees, encourage productivity and get excellent results. The safety of employees at the workplace is usually one of the highest priorities of employers. This can even overshadow factors that are conventionally considered significant, like salary levels offered or time allowed for personal leave. The employer thus takes the responsibility to provide a safe and healthy working environment for people working in their company.
However, accidents can happen anytime, regardless of the safety measures adopted. When they occur and cause injuries, employees (or their families) seek compensation from the company. Under the Employees Compensation Act 1923, an employer is legally liable to pay compensation to the employee’s family.
Why buy a workmen’s compensation policy?
An affordable way to deal with the hefty expenses related to financial liabilities to employees is to buy a workmen’s insurance policy. Having this policy serves two purposes. It covers medical expenses and compensation for the injured employee. Also, it protects the employers from lawsuits filed by the employee injured while working. Workmen compensation policy is a no-fault insurance system insurance policy. It benefits both employers and employees. However, employees are covered by this policy only when an accident or mishap arises out of or during the course of their employment.
Things to note before you buy a workmen’s compensation insurance policy
1. Know the laws related to workmen’s compensation
Every Indian state has a different set of laws related to workmen’s compensation. No two states have the same rules and thus it is necessary to know the benefits or compensation that an employer is entitled to pay. These laws also determine what injuries or impairments need to be considered for the calculation of medical compensation. You can obtain information about the laws related to workers’ compensation by visiting your state’s workmen compensation department online or offline. Select the most suitable workmen compensation policy that best fits your organization’s needs.
2. Be aware of workplace hazards
It has been rightly said that an ounce of prevention is worth a pound of cure. The first step to securing employee welfare is to be aware of the workplace hazards of the job. Making a safety plan and implementing it mitigates the risks that might lead to work-related injuries. Following easy steps like providing for ladder safety, proper signage, appropriate protective gear, and regular drills can reduce the risk of injury and hence the claims. Accordingly, you can buy personal protective equipment for the employees and have good work practices.
3. Assess the coverage you need
Once you have made a list of possible hazards in your workplace and updated yourself about the laws, you need to assess the coverage you need. Depending on the differences in the operations or processes, one workplace can be completely different from the other. Select the coverage based on your business needs. Find out if you need the policy to provide for just medical treatment and disability of the injured employee or a wider cover. Do you also want your policy to protect you against civil liability for common law injury claims.. Ask yourself some critical questions to determine the upper limit of insurance coverage you need?
4. Compare plans from different insurers
The choice of the right insurer is essential to make the most of a workmen’s compensation plan. Given a large number of policy providers in the market, choosing one is not as easy as it may seem. Hence, research the different insurers thoroughly and compare them in terms of their market reputation, coverage benefits, and similar other aspects.
5. Ask for help from insurance advisors
There are a number of clauses and benefits under the workmen’s insurance policy that many employers do not easily understand. If you are unsure about the benefits or coverage and find it challenging to pick an insurer, you should ask for advice from an insurance broker before you buy a policy. A good advisor will also inform you about exclusions. This prevents surprises later if a claim is made.
SecureNow offers a wide range of workmen’s insurance policies from topmost insurers to cover possible accidents that might occur during employment.
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.
