Workmen Compensation

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The Workmen Compensation Act, 1923 recognizes both the employees of an organization, and their dependents as beneficiaries, worker compensation insurance entitles both to receive the monetary benefit.

The dependent is entitled to the insurance benefit in case of a workplace accident or injury, resulting in the death of an employee. However, the survivor benefits are passed only to eligible dependents under the workmen compensation insurance agreement.

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

However, 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

 Following people are eligible to get monetary benefit under the WC policy.

  • 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
  • Legally adopted unmarried daughter at the time of father’s death
  • A minor sibling or a widowed sister
  • Widowed daughter-in-law
  • A minor child of a pre-deceased son
  • Minor child of a pre-deceased daughter (only if the minor has no parent alive)

Dependents are considered in the same preferential order as mentioned above.

Know the amount workers are eligible to get 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 has to deliver inter-city consignments. The Workers Compensation Insurance policy bought by his employer also covers Jignesh. Jignesh is a married man, with two kids. He has a married daughter, and a minor son.  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. The law entitles Jignesh’s wife as the beneficiary since she is financially dependent on Jignesh and the legal guardian of the minor children.

In case the wife was not there, the 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 in the hospital 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 died. She was single and lived with her parents at the time. In this case, the parents received the benefit payable by the workmen’s compensation insurance of the company.

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

Disabled Husband

Gayatri Prajapati- a contract worker – works at Bhali Autos India Ltd. Her husband- Raman Prajapati was 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 the insurer pays the compensation directly to Raman, widower, or Gayatri.

Knowing who is eligible to receive benefits of the workmen compensation policy is important before purchasing the policy.