Workmen Compensation

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As per the legal definition of The Employees’ Compensation Act, 1923, the workers/employees of an organisation, and their dependents, both recognised under the worker compensation insurance, are entitled to the monetary benefit.

Only if the workplace accident or injury, results in the death of an employee, the dependent is entitled to the insurance benefit. The survivor benefits are passed only to eligible dependents under the worker compensation insurance agreement.

Every employee must nominate at least one dependent. In the case of multiple dependents, the amount can be distributed among the nominated members as provided by the worker.

To qualify as a valid dependent, the claimant has to prove that he/she is wholly or partly dependent (financially) on the deceased.

Eligible Dependents Are:

 Widow of the deceased

  • A widower
  • Minor son
  • Unmarried daughter
  • Widowed mother
  • Parents of the deceased
  • Paternal grandparents if parents of the deceased are not alive
  • Legitimately adopted son
  • Legitimately adopted daughter who is unmarried at the time of father’s death
  • A minor sibling or a widowed sister
  • A widowed daughter-in-law
  • A minor child of a pre-deceased son
  • A minor child of a pre-deceased daughter (only if the minor has no parent alive)

These dependents will be considered in the same preferential order as mentioned above.

It is important to know how much your workers will be eligible for in different cases. To know about the probable compensation receivable by the worker in different scenarios, see How to Calculate a Settlement in a Workman’s Comp Injury?

Case on Dependents in W.C. Insurance

Dependent Spouse & Minor Children

Jignesh is an employee of a transportation company in India. He is a driver with the firm and is required to go for delivering inter-city consignments. Jignesh is covered under the Workers Compensation Insurance policy bought by his employer. Jignesh is a married man, with two kids. Jignesh’s daughter is married, and his son is a minor. Jignesh is the sole breadwinner of his family.

Jignesh meets with an accident while delivering a consignment. He dies while receiving treatment in the hospital. As per the law, Jignesh’s wife, who is financially dependent on Jignesh and is the legal guardian of the minor children, is entitled to receive the compensation.

In case if the wife is not there, minor son of Jignesh will be eligible to receive the benefit.

Benefit Payable to the Worker

Similarly, Ratan Kumar, a driver with Fast Courier, met with an accident and was hospitalized for one month. Also, he was on bed rest for another 2 months before he could report to work, for this period the insurer paid the benefit of 25% of his salary along with the hospital expenses.

This benefit was payable directly to Ratan as he was alive and not to his family members or dependents.

Read More: Who Should Buy Workers Compensation Policy?

Dependent/ Partially Dependent Parents

In another case, Sumitra Devi, a contract worker at Wadhwa Fashion Works, met with an accident at work and dies. She was not married and was living with her parents at the time. In this case, the parents received the benefit payable by the workmen compensation insurance of the company.

The parents, however, only partially depended on Sumitra’s income.

Disabled Husband

Gayatri Prajapati is a contract worker employed with Bhali Autos India Ltd. She’s married to Raman Prajapati who’s disabled and runs a puncture shop near their house. Gayatri meets with a fatal accident at the workplace, and the employer becomes eligible to pay compensation under W.C. Act.

Bhali Autos has bought the W.C. insurance for such scenarios and insurer pays the compensation directly to Raman, widower or Gayatri.

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