Workmen Compensation

What are the features of workmen compensation Policy?

A workmen’s compensation policy covers the financial liabilities that organizations might face if their workers or employees get injured or die during the natural course of their employment. In such cases, as per the statutes of the Workmen’s Compensation Act, 1923, organizations need to shoulder the financial responsibility of compensating the injured workers. To take care of this financial responsibility, a workmen’s compensation policy is designed.

Let’s have a look into the important workmen compensation features which makes the policy distinct in the coverage provided –

Salient workmen compensation features 

  1. Coverage offered 

Firstly, you should understand the coverage offered by the workmen’s compensation policy. The policy covers accidental disablement or death of the employee in which case a lump sum benefit is paid. It also covers accidental injuries for which the medical expenses incurred are covered by the policy. Moreover, if the company suffers a lawsuit and incurs legal costs, such costs would also be covered.

  1. Policy exclusions

There are some instances that are not covered under the workmen’s compensation policy. These are called policy exclusions and common exclusions include the following –

  • Injuries suffered due to war, terrorism or nuclear threats
  • Injuries suffered by third party employees
  • Attempted suicide or deliberate self-inflicted injuries
  • Injuries suffered outside work
  • Agreed compensation payable to employees as per an agreement
  • Injuries suffered under the influence of intoxicants
  1. Policy extensions

Additional coverage extensions are allowed by workmen’s compensation policy at an additional premium. Some common extensions include coverage for contractual employees, coverage for medical costs, coverage for occupational diseases, etc. You can opt for the desired extensions and create coverage that you need.

Benefits of worker insurance for employer and employee

The workmen compensation advantages are dual in nature. The policy benefits both the employer and the employee. For the employer, the policy takes care of the financial liability suffered if the worker suffers an accident during employment. The employer gets financial security knowing that any possible liabilities and compensations would be paid by the workmen compensation policy. This also maintains the employer’s profitability and helps it create a good reputation in the industry.

For the worker, the main workmen compensation advantage is that the policy promises financial relief. If the employee suffers any contingencies due to employment, the policy would compensate the employee for the financial loss suffered. This gives employees financial security too knowing that in case of any physical injury or death, they would not suffer any financial hardships.

Important clauses of workmen compensation policy

The workmen compensation policy is governed by some specific clauses which include the following –

  • Indemnity clause

Under this clause, the policy seeks to restore the financial position of the employee after the accident to the same level. The compensation payable ensures that the employee does not suffer any financial loss due to the accidental injury.

  • Average clause

Under this clause, the change in the number of employees covered under the policy is addressed due to new joining or attrition in the organisation. Under the average clause, the sum insured is prorated by the insurance company to cover the changed number of employees, subject to certain terms and conditions. 

  • Contribution  clause

This clause is applicable if an organization is insured under two or more workmen compensation policies. In the case of multiple policies, the claim amount would be shared by insurance companies in the ratio of the coverage offered.

So, understand these workmen compensation features and then buy a suitable policy. 

What are the features of workmen compensation Policy?

To find the most relevant policy for your organization you can visit or call 96966 83999. We would guide you on how to buy the best plan so that you can provide a comprehensive scope of coverage to your employees and also be financially secured.

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