While organizations try to make the workplace as safe as possible, accidents can happen anytime. According to the report published in a leading newspaper, the Ministry of Labour reported an average incidence of 1,400 fatal and 1 lakh non-fatal accidents in non-domestic places. It is the employers’ responsibility to ensure their workers are working in a safe and secure environment. Taking a workman’s compensation policy will not only take care of expenses incurred if an employee is injured on the job but also protect your organization from lawsuits caused due to workplace accidents.
Significance of Workmen Compensation Policy
Also, called the ‘Employees Compensation (Amendment) Bill, the policy gives compensation to workers and their dependents in case of injury or accident, including occupational ailments arising due to work and in the course of employment resulting in death or disability.
According to the Workmen Compensation Act of India, the main employer or contractor is legally liable to pay compensation to its employees in case a mishappening occurred in a workplace. The policy helps in covering legal liability coverage and defending employees from expensive lawsuits filed by employees.
What does the WC policy do?
Workman’s Compensation insurance policy protects the employee against any injury or death while at work. WC Policy is highly useful for businesses where employees work in a hazardous environment. Has high exposure to health or life hazards. This policy helps employers to deal with these huge expenses in a much more affordable manner.
How does the Workmen’s Compensation Policy come into existence?
The Workman’s Compensation Policy is the result of the bargain that happened between businessmen and their employees. Workers often sued business owners and seek for compensation. They wanted compensation for the injuries or diseases that happened during employment. The policy was established to address the needs of both parties. While the employee got compensation under the policy, an employer, on the other hand, got legal liability coverage.
Why is it necessary?
In a growing economy like India, it is even more difficult for employers to meet huge expenses resulting from employee injuries at work. Workmen’s Compensation insurance is the best way these companies can resolve this issue. Several work profiles require the worker to be exposed to a greater risk of injury as compared to others.
It is inevitable to go for a workmen’s compensation policy to safeguard your business from legal liability. The cost incurred from a workplace accident or sickness is massive. It is useful in covering the employer’s unlimited legal liability to a great extent.
Reasons to opt for a Workmen’s Compensation Policy
Coverage for personal injury caused to employees:
Imagine, while working on a machine, a worker sustains serious injuries. Will you be liable to pay medical and other expenses in such a case? Of course, there will be as it would not have happened if the machine worked fine. Here, the workmen’s compensation policy helps you to pay for liabilities that may arise due to any personal injury caused to the employee on duty.
Coverage for death or disability:
Partial or complete disability is unfortunate not only for employees but for their families also. Though you have installed hi-tech equipment and machinery in your office, you can never be sure that all this equipment is completely safe and secured. It is important to go for an insurance policy that can compensate you for death or disability that may happen during your employment.
Coverage for occupational ailments:
Diseases like bronchitis, asthma, etc.; are on the rise, and what if your worker complains that he/she starts suffering from any of the occupational ailments? In such situations, a WC policy can save your business from legal liability that may arise if a worker sues the employer.
Special covers are available:
You can add special covers to your insurance policy. For instance, you can include your liability towards sub-contractors who may or may not be working directly for you. Further, some policies cover injury or disability caused to employees during working hours due to terrorism.
Good for the organization:
By getting a workman’s compensation policy, the organization is assured that the employees or workers are safe and limits the company’s liabilities and expenses in the event of any unexpected adverse circumstances.
The Verdict
If an organization decides not to take the policy then- not only will the company have to bear unforeseen expenses on behalf of the employees, but it also affects its reputation in the long run. With enough knowledge about the policy now it is better to be safe than sorry.
About The Author
Rahul Kumar
MBA Finance
With a wealth of experience in the insurance industry, Rahul is a seasoned writer specializing in articles related to workmen compensation policies (WC policies) for SecureNow. With 12 years of experience in the field, he has acquired in-depth knowledge and expertise in workmen compensation insurance, understanding its complexities and nuances. Their insightful articles provide valuable insights into the importance of WC policies for businesses and employees alike, offering practical advice and guidance on navigating the intricacies of insurance coverage. Trust him to deliver informative and engaging content, backed by years of experience and a passion for educating readers about insurance-related topics.
