A workmen compensation Insurance policy entails 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 unforeseen perils of employment. This article helps you understand the right price for Workmen Compensation policy
Moreover, a wide range of policy extensions is available to provide the maximum scope of coverage of the policy. The sum insured by a workmen’s compensation policy is unlimited because it will pay for whatever amounts the court award. As such, many policyholders struggle to determine the right price to pay for the policy.
The premium determined for this policy depends on a number of factors shown in the below infographic.
Insurers will ask for all of this information in their proposal forms when reviewing your purchase request for a plan. Coverage under the policy is granted in two distinct tables.
Table A covers the Workmen’s Compensation Act, 1923, Fatal Accidents Act, 1855, and Common Law while Table B covers only the Fatal Accidents Act, 1855, and Common Law. The premium is, therefore, determined for each table separately.
The premium rates for different industries can be different, depending on how the insurance provider perceives the related risks. However, these are the costs if bought through an experienced intermediary. If the company approaches the insurer directly they are likely to get the “rack rates” that can be twice these premiums.
So, keep these factors in mind when deciding to go for this policy. Options to pay workmen compensation premium. You can pay the premium of your WC policy through different modes like cash, cheque, demand draft, debit or credit card, net banking, RTGS or NEFT, UPI, mobile wallets, etc.
How to minimize workmen’s compensation Insurance premium?
Following are the ways in which you can minimize the Employees compensation insurance policy cost:
Most importantly, work with an intermediary that understands the product and knows the fair
rates for different risks
Compare different workers compensation Insurance policies based on their coverage and premiums.
Comparison helps you pick the best and buy workmen compensation policy online for your establishment.
Take steps to manage risks at the workplace e.g. install skid-resistant doors
Maintain a good claim history
Buy annual policies that are renewed each year. This builds the insurer’s confidence in your
Things to consider for the right WC policy cover
When buying WC Policy, there are several things to consider to ensure that you get the right coverage for your business and employees. Here are some key points to keep in mind:
- Legal requirements: Workers’ compensation insurance is a legal requirement in most states, so ensure that your business is in compliance with state laws.
- Coverage limits: Choose a policy with appropriate coverage limits based on the size of your business and the nature of the work your employees perform.
- Premiums: Consider the cost of premiums and the deductibles associated with the policy.
- Insurance company reputation: Research and compare insurance providers to ensure that you choose a reputable company that can provide the coverage you need.
- Customization: Look for a policy that can be customized to meet the specific needs of your business, such as covering seasonal employees or those in hazardous industries.
- Claims process: Understand the claims process and the support available to you and your employees in the event of an injury or illness.
- Ongoing evaluation: Regularly review your policy to ensure that it continues to meet the needs of your business and employees, and make adjustments as necessary.
By taking these factors into consideration, you can ensure that you have the appropriate workers’ compensation coverage for your business and employees, while also protecting yourself from financial liability in the event of an accident or injury on the job.