Workmen Compensation Insurance
What is Workmen Compensation Insurance?
Employee's Compensation Insurance, mandated under the Employee's Compensation Act 1923 and subsequent Amendments, as well as the Fatal Accident Act 1855, is a crucial policy that safeguards employers against legal liabilities arising from workplace accidents. Despite preventive measures, accidents are inevitable, and this policy enables employers to compensate employees or their families for death or bodily injuries (permanent partial disablement, permanent total disablement, temporary disablement) caused by workplace accidents or certain occupational diseases. It covers medical expenses, occupational diseases, and conditions like compressed air disease, providing financial protection and support to both employers and employees in the event of workplace injuries or illnesses.
Why should you buy Employee’s Compensation Insurance?
The Employee’s Compensation policy provides payment for legal compensation to Employees or their dependants in case of injury and accident of the employees at workplace (including certain occupational disease) arising out of and in the course of employment and resulting in disablement or death.
Workmen Compensation Insurance advantage
Legal Compliance: It ensures compliance with the legal requirements set forth by the Employee's Compensation Act and other relevant laws. Employers are legally obligated to provide compensation to employees for work-related injuries or illnesses, and this insurance helps fulfill that obligation.
Financial Protection for Employers: Worker's Compensation Insurance protects employers from potential financial burdens associated with compensating employees for workplace injuries or illnesses. Instead of bearing the entire cost out of pocket, the insurance covers these expenses, thus safeguarding the financial stability of the business.
Financial Security for Employees: Injured or ill employees receive timely and adequate compensation for medical expenses, lost wages, and rehabilitation costs covered by the insurance policy. This ensures financial security for employees and their families during times of need, reducing the financial strain resulting from workplace accidents.
Coverage for Medical Expenses: Worker's Compensation Insurance covers medical expenses related to workplace injuries or illnesses, including hospitalization, surgery, medications, rehabilitation, and other necessary treatments. This ensures that employees receive appropriate medical care without worrying about the financial burden.
Occupational Disease Coverage: The insurance policy also covers certain occupational diseases contracted as a result of employment conditions. This includes diseases caused by exposure to harmful substances or conditions in the workplace, ensuring that employees receive compensation for work-related illnesses.
Disability Benefits: Worker's Compensation Insurance provides disability benefits to employees who suffer from temporary or permanent disabilities due to workplace injuries or illnesses. These benefits help replace lost income and provide financial support to employees during their recovery or adjustment to a new life situation.
Death Benefits: In the unfortunate event of a workplace fatality, the insurance policy provides death benefits to the deceased employee's dependents, offering financial support to the family members during a difficult time.
Insurance Benifits
- Large number of insurance policies
- Cover for Critical Situations
- Experience & qualified Staff
- Team of Experts Staff
The workmen's compensation policy helps the employer to pay compensation to its employees or their families. The workmen's compensation policy is helpful in case of death, bodily injuries, or disability whether permanent or partially caused due to an accident or injury at the workplace during the employment course.
Any company or employer, including contractors, who hires workers as defined in the Workmen Compensation Act, of 1923, can purchase a workmen compensation insurance policy. This insurance cover provides legal liability coverage and also helps in easing the financial burden on employees and employers.
Every employee (including those employed through a contractor but excluding casual employees), who is engaged for the purposes of employer's business and who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.
To determine compensation in conformity with the legislation, the formulas in Section 4 of the Workmen's Compensation Act are used: If an accident results in death, pay the appropriate factor 50% of the dead employee's monthly wage, or Rs. 1,20,000, whichever is higher.