The Workmen Compensation Insurance Policy is an essential backup plan for employers. It protects them from incurring any financial liability when workers have an accident. The policy covers financial expenses arising due to physical injury, partial or total disability and occupational diseases of workers while on duty or because of their employment. It is imperative for small organisations as they depend on their workers for their growth and survival. Hence, getting adequate coverage is crucial to safeguard against unexpected liabilities and survive any mishaps. S0, know the Seven Exclusions of Workmen Compensation Policy
However, be aware of some exclusions in a workmen’s compensation insurance as listed below:
What scenarios are not covered under the Workmen Compensation Policy?
Seven Exclusions of the Workmen Compensation Policy are as follows:
Injuries incurred during War and Invasion
Accidents occurring in case of war, an attack or an invasion of the workplace is not the fault of the employer. Holding the employer responsible for these activities is unjustifiable as he is also the sufferer in such a case.
Any physical injury, death or disability suffered by an employee arising in these cases will not be covered under this policy. Medical expenses will not be borne by the insurer.
Injury Due to Terrorist Activity in the Office Premises
The policy does not cover physical injury of employees if due to any terrorist activity. For example, it excludes coverage for injuries suffered in bomb attacks in the office area. According to the policy, these activities are not the responsibility of the employer. Hence, he is not liable to pay for injuries resulting from terrorist activities.
However, the employer can buy a separate cover for terrorism damage to cover such damages to material and life.
Costs payable to third-parties
The compensation cover excludes costs incurred by third parties that are not workers or employees. Similarly, the policy excludes third-party contractors and their respective employees. Such third parties get covered in different insurance called Comprehensive General Liability.
Attempt to Suicide or Self-Harm
The policy does not cover expenses of injuries inflicted by employees on themselves with the intention to harm themselves.
Attempted suicide cases or instances of self-harm are first assessed legally and certified as self-harm before any decision is made.
Injury Suffered Under Intoxication
Generally, the intake of liquor and drugs can lead one to lose control over his body. Severe injuries suffered during working hours under the influence of drugs or liquor are inadmissible under the policy.
The policy also does not support the expenses of employees travelling on duty and suffering an accident due to the consumption of liquor.
Injuries Suffered Outside Work
The compensation cover does not cover an injury suffered by an employee outside the office or factory premises when he is not on duty. For example, if an employee meets with a road accident while he is on a holiday, such a case will not be applicable to this policy.
Compensation for Injuries Payable by the Employer under an Agreement
Some organisations may enter an agreement, while hiring workers, to compensate them for certain injuries during their employment. The workmen policy will not cover such payments bought by the employer. One such benefit is a contractual death benefit. This is typically insured through other products such as a group term life.
Because of the above-mentioned exclusions in a Workmen Compensation Policy, employers have to be extremely careful in communicating these exclusions to workers and to make sure that other risk mitigants are also in place.
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