{"id":1130,"date":"2017-04-20T07:48:53","date_gmt":"2017-04-20T07:48:53","guid":{"rendered":"https:\/\/pamstaging.securenow.in\/insuropedia\/?p=1130"},"modified":"2025-12-31T09:54:54","modified_gmt":"2025-12-31T09:54:54","slug":"what-is-workers-compensation","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/what-is-workers-compensation\/","title":{"rendered":"What is Workers\u2019 Compensation and in which cases does it benefit the employee\/worker?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">Workers\u2019 Compensation or Employee Compensation refers to the monetary compensation offered to workers or employees of an organization, firm, household or any establishment in lieu of any injuries they might sustain while involved in employment-related activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An important factor to note about <\/span><span style=\"font-weight: 400;\">worker\u2019s compensation<\/span><span style=\"font-weight: 400;\"> is that it is only applicable in the case where the damage to physical health has been sustained while the worker or employee is :<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">On duty and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Performing the tasks assigned by the employer<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Hence it can be considered the <\/span><span style=\"font-weight: 400;\">employer\u2019s duty<\/span><span style=\"font-weight: 400;\">, to ensure a safe and healthy work environment for the workers. <\/span><span style=\"font-weight: 400;\">Any other injury sustained outside the workplace or at the workplace ignoring a safety protocol is not covered.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Workers should also be compensated for the <\/span><span style=\"font-weight: 400;\">occupational diseases<\/span><span style=\"font-weight: 400;\"> contracted by them due to their work profiles.<\/span><\/p>\n<h2><strong>\u00a0In which cases the worker\/employee is eligible for monetary compensation?<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Injury at employment (due to the work)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Disease contracted due to occupation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Death or Disability sustained at work<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This liability can be insured against. In fact, it should be insured against, if you are employing workers who could be eligible for it.<\/span><\/p>\n<h3><b>Case Study on Workers&#8217; Compensation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Shameek Choudhry runs a proprietary tours and travels company and operates about 20 taxis with all India permits. He has employed about the same number of drivers to drive these taxis and has a small pit shop with two mechanics who perform minor repairs and maintenance on these taxis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since most of the drivers and mechanics are contractual, Shameek has no need for buying health or life covers for these workers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once a driver met with an accident when he was returning from a trip. And took him to a hospital. Shameek had no recourse to an alternative and paid the healthcare and recovery expenses for the driver out of his pocket. The total expenses incurred were about Rs. 75,000 and Shameek also paid some money to his family so that they could look after their household expenses while the driver was recovering.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The driver rejoined Shameek after about one month, and while he is grateful to Shameek, Shameek\u2019s pockets are lighter by about Rs. 1 Lakh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0In case the driver died this amount could be much higher. And there is no guarantee that Shameek could\u2019ve borne it being a small-scale proprietor. But in any case, it was his responsibility, and he would have had to pay it under a court order.<\/span><\/p>\n<h3><b>Death at Workplace from Natural Causes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Ashfaq, the the 45 years old driver, was an employee of Congo Minerals Ltd. Once, after returning from a trip while driving the company\u2019s official vehicle. He suffered chest pain and moved to a hospital. He died within half an hour of arrival.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">His cause of death was a heart attack as registered in the post-mortem report.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ashfaq\u2019s family demanded that Congo Minerals should pay compensation under the <\/span><span style=\"text-decoration: underline;\"><span style=\"font-weight: 400;\">Workmen Compensation Act<\/span><\/span><span style=\"font-weight: 400;\">, as Ashfaq died while on duty. But the firm denied the same citing the reasons for death as unrelated to the job performed by the employee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Later the high court confirmed the same after going through all the evidence and factors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The employer, however, agreed to pay compensation out of W. C. Act to the family for their loss and offered to employ the eldest member of the family.<\/span><\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Rahul Kumar\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">MBA Finance<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Workers\u2019 Compensation or Employee Compensation refers to the monetary compensation offered to workers or employees of an organization, firm, household or any establishment in lieu of any injuries they might sustain while involved in employment-related activities. An important factor to note about worker\u2019s compensation is that it is only applicable in the case where the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[296,295],"tags":[60],"class_list":["post-1130","post","type-post","status-publish","format-standard","hentry","category-importance-workmen-compensation","category-workmen-compensation","tag-workmen-compensation-insurance-policy"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=1130"}],"version-history":[{"count":14,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1130\/revisions"}],"predecessor-version":[{"id":34275,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1130\/revisions\/34275"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=1130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=1130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=1130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}