Workmen Compensation

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Employee safety and their complete welfare protection are imperative to maintain for every business owner. Providing employees security, a safe working atmosphere, and extending all possible support facilitates businesses a smooth run and strong growth. Protecting the employee’s health and welfare benefits both employer and employees. It’s a legal responsibility of every employer so as to protect employees’ health, safety and wealth. It is in this regard of complying with important legal obligations in the most effective manner that every business owner should invest in a workers’ compensation insurance policy to fulfill the responsibilities.

Legal responsibilities of employers

Even if a company has a workers’ compensation insurance policy, it has the following legal responsibilities:

Informing employees about the policy

It is the responsibility of the employer to inform workers that they carry workers’ compensation insurance. Every employer should give written notice of coverage to new employees on hiring. This notice should also be posted at their place of business. The notice must be in Hindi, English, or any other regional language that is common to employees. The management should ensure that the notice is posted at different visible business locations.

Providing information on claim filing for the WC policy

An employer should provide claim forms to injured workers within 24 hours of receiving the information about the injury. Also, the employer should give the written information about employees’ rights available under the workers’ compensation insurance. Moreover, it is also necessary that employers give relevant information about the procedure of filing a claim.

Provide a safe working atmosphere

Even after buying the workers’ compensation insurance policy, it is one of the legal responsibilities of employers to provide a safe working atmosphere for their employees. All necessary steps should be taken to safeguard the life, health, and safety of employees.

Update the insurance provider about the work-related injury on time

It is the responsibility of employers to report to the insurance provider about any:

  • A work-related injury which may result in the absence of employees from work for more than one day
  • The occupational disease of which the company has knowledge
  • Work-related fatality

Read More: How to decide the Insurer in Workers’ Compensation?

Compile report to aid proper medical treatment

After an accident, it is the duty of the employer to prepare a report of the injury and mail it to the insurance company. An employer who refuses or neglects to do so may be guilty of a misdemeanor. The report should explicitly mention the kind of medical attention required beyond first aid.

Give updated and correct details to the insurance company

It is necessary for an employer to report an injured worker’s wage and other fringe benefits (like health insurance, uniform allowance, overtime, etc.) to the insurance company. Further, it is also necessary to report any changes in the injured worker’s salary or employment status to the insurance company.

Provide immediate medical attention

In the case of an accident, it is the duty of the employer to provide quick medical care to the injured worker.

Ensure complete transparency and non-discrimination

It has been seen that employers often frown on employees who file workers’ compensation claims and some even do discrimination. It is the duty of employers to ensure no discrimination is made and injured workers get all rights as available to other employees.

Maintain proper records

The insurance company and employer need to maintain a proper record of any illness or disease incurred by an employee during employment. It is necessary even when the extent of injury doesn’t require hospitalisation.

Case: 1

T.J Auto is the leading manufacturer of high-quality rubber and metal bonded parts and components. An award-winning company, T.J Auto is synonymous with high quality. Recently, the company bought a workmen’s compensation insurance policy to cover its over 500 employees. The purpose of the policy is to offer legal liability coverage to the employer against any injury caused by employees during employment. Though the company has a workers’ insurance plan, it is legally responsible for providing a safe and conducive working atmosphere for its employees. Moreover, in case an accident or injury arises, T.J Auto has to inform the insurance company on an immediate basis and also provides all the details related to an accident along with the income structure of the injured worker.

Read more: What are the statutory requirement for Worker Compensation Insurance?

Case: 2

Nearly two years back, W.S Real Estate bought a workmen compensation insurance policy to get legal liability coverage against any accident or illness that an employee may suffer during employment. Last year, one of its workers, slipped while working on the construction site. Luckily, the supervisor present took him to a nearby doctor and later to a private hospital for better treatment. The company offered all the good medical facilities to the injured worker for a speedy recovery. As the company had a workmen’s compensation insurance policy, the insurer compensated the injured worker. The HR department of W.S Real Estate prepared a detailed report of the accident and its cause.

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