Workmen Compensation

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Even if a company has a workers’ compensation insurance, which is also known as workmen compensation insurance policy, it has the following legal responsibilities:

  1. It is the responsibility of the employer to inform workers that they carry workers’ compensation insurance and also gives a 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 and should be posted at different visible business locations.
  2. It is the responsibility of an employer to 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 along with the procedure of filing a claim.
  3. Even after buying the workmen compensation insurance policy, employers must provide a safe working atmosphere for its employees. All necessary steps should be taken to safeguard the life, health and safety of employees.
  4. It is the responsibility of employers to report to the insurance provider about any:
  • Work-related injury which may result in the absence of employees from work for more than one day
  • Occupational disease of which the company has knowledge
  • Work-related fatality

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

  1. After any 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.
  2. 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.
  3. In the case of any accident, it is the duty of the employer to provide quick medical care to the injured worker.
  4. 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 which are available to other employees as well.
  5. A proper record has to be made and maintained by the insurance company of any illness or disease incurred by an employee during employment, even if the extent of injury doesn’t require hospitalisation.

Case: 1

T.J Auto is the leading manufacturer of high quality rubber and metal bounded 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 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 a 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 was there who rushed him to a nearby doctor and later took him to a private hospital for better treatment. The company offered all the good medical facilities to the injured worker for a speedy recover. 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 the detailed report of the accident and its cause.

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