One of the major responsibilities of any company is to provide a safe and healthy environment for its employees. If an employee suffers a bodily injury or death during their employment, the company is legally liable to pay compensation under the Employee Compensation Act 1923. That’s where the Workmen Compensation Insurance policy comes into the picture.
What is Workmen’s Compensation Insurance?
It is a type of insurance policy to provide coverage for your business employees who are injured, have a work-related illness or even die during the course of employment. Having this insurance will provide employees with compensation without leaving your business at a financial loss. For example, if you own a construction business and are on a worksite, if something falls onto one of the employees from a higher level, causing a fracture in their leg. If you don’t have workman compensation insurance, they can sue your business and claim compensation from you for medical expenses. This can end up costing your business as well as your reputation significantly.
How is International worker’s compensation different from the Standard?
Here is an overview of what standard workmen’s compensation insurance covers and what it does not cover:
Key features of Standard workmen insurance policy
- Accidental Injury
- Death benefits
- Occupational Illness and Diseases
- Disability Cover
- Medical Coverage
Exclusions
- Any injury by accident or disease directly attributable to war, the act of a foreign enemy, civil war, rebellion, military or usurped power.
- The policy doesn’t cover the insured’s liability to contractors’ employees unless it’s explicitly declared.
- Any employee who is not a workman with the meaning of laws.
- It refers to any legal responsibility or debt arising from an agreement, which wouldn’t exist without that agreement.
- Illness due to the food brought from the home or prepared by the employee.
- Injuries incurred under the influence of alcohol or any other drugs.
While relatively similar to standard workmen’s compensation insurance, some unique offerings that international employees possess are:-
- The war and terrorism compensation is included.
- It also covers endemic diseases, which are found in specific regions that domestic standard policies don’t cover.
Who Should Apply to International Workmen Compensation Insurance?
Any company that employs workers who are in the country of origin or traveling internationally for work will need international workers’ compensation coverage.
- When an employee is located overseas for more than 3 months can apply for an international compensation policy.
- Permanent shifting to a foreign country.
- If the company sends an employee for the execution of a particular project for a short period of time.
How to Claim Workmen Compensation Insurance?
- The injured or ill employee must file a claim about the accident to the manager or employer.
- The employer must collect the information about the accident as per the requirement of the insurance company.
- The employee has to submit the required documents to the insurance company.
- Then, the insurance company takes the necessary actions to either reject or
accept the claim. If your business doesn’t cover the workmen’s compensation
policy, then you have to cover all your employee’s costs out of pocket.
How can SecureNow Help?
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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.
