The Workmen Compensation Insurance Policy is an essential backup plan for the employers to safeguard themselves from any liability arising due to physical injury, partial or total disability and occupational diseases suffered by their employee while on duty or because of the occupational activity. The small organisations which depend on their employees for their growth and survival, must safeguard against big sudden liabilities to survive any mishap.
To provide protection to the employees and support their families in the event of injury, the employers avail this policy. Workmen compensation policy can remove the burden of paying for the injured employee’s recovery and other similar sudden financial obligations. This also instills a sense of security in the minds of employees that they will not be financially impaired due to any such injury and employer can enjoy better reputation in the market.
Although this policy offers coverage against multiple situations of injury, there are specific situations excluded from the policy cover. Therefore, before availing this policy it is important to understand the coverage.
What is not covered under the Workmen Compensation Policy?
- Injuries incurred during War and Invasion
Accidents that occur in case of war, an attack or invasion of the office premises are not due to 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 in such a case will not be covered under this policy and the medical expenses will not be borne by the insurer.
- Injury Due to Terrorist Activity in the Office Premises
If due to any terrorist activity like a bomb attack in the office area, employees suffer injuries at workplace. It will not be covered under the policy. As said in the earlier point, such activities are not the responsibility of the employer and he is not liable to pay in such cases.
A separate cover for terrorism damage, however, can be bought by the employer to cover such damages of material and life.
- Third-Party Employees
If you are in a transportation business and have hired carriers, these third-party organisations or their employees are excluded from the compensation cover. This means that in case the employees of these organisations meet with an accident while on duty, no compensation will be paid to cover their medical expenses. Others excluded from the policy can be the contractors and their respective employees.
- Attempt to Suicide or Self-Harm
Any injury suffered by an employee in case he tries to harm himself in the office premises will not be covered under the policy.
Such cases of attempted suicide or self-harm are first assessed legally before any decision is made.
- Injury Suffered Under the Influence of Liquor or Drugs
Generally, the intake of liquor and drugs can lead one to lose control over his body. In case he suffers any severe injury in the working hours and is found to be under the influence of drugs or liquor, such a case in inadmissible under the policy.
Even if an employee is travelling on duty but it is found that he had consumed liquor and met with an accident then, such a case is not admissible under the policy.
- Injuries Suffered Outside Work
Any accident suffered by an employee outside the office premises when he is not on duty is not covered under the compensation cover. For example, if an employee meets with a road accident while he is returning home or going on a holiday, such a case will not be applicable in this policy.
- Compensation for Injuries Payable by the Employer under an Agreement
Some organisations, while hiring the employees, may enter an agreement to compensate them for certain injuries if contacted during their employment. Such payments will not be covered by the workmen policy bought by the employer.
One thing which can be clearly understood with the exclusions is that, employer cannot shrug off their responsibility with this policy, and employees, so far as their actions fall under the legal ambit of actions, will be safeguarded against financial hardships caused due to employment hazards.
As an employer, it is advisable that you take care of the conditions of this policy while purchasing to ensure that your business does not suffer due to sudden financial distress and neither does your employees. SecureNow, an insurance advisor, offers their services through an online portal, where you can get quotes from multiple insurers and get assisted in your decision-making process.
Additionally, SecureNow also helps you in filing proposal, managing your policy and filing claims as and when necessary.
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