What is the Workmen Compensation Insurance Policy?In today’s highly global work environment, employees’ rights have also become important. To safeguard organisations from the threat of costly lawsuits, insurers offer workmen’s compensation policy. It is an insurance policy which covers statutory liability of an employer for death, bodily injury or occupational diseases sustained to employees. It is also known as the ‘Employees Compensation (Amendment) Bill’, ‘Employer’s Liability Insurance’ and ‘Worker Compensation Policy’.
The workmen’s compensation policy is the primary method by which employers can show their ability to satisfy the obligations imposed by the worker’s compensation statutes. As employers pay for this insurance, no contribution is required to be made by employees.
As per the Workmen Compensation Act in India, the main employer or contractor is liable to pay compensation to employees in case of any mishappening at the workplace. The compensation amount depends on the nature of the injury, the average monthly wages and age of the workman. However, if the employer has a workmen compensation insurance policy, it can secure itself from the legal liability. The liability of the company is unlimited and this policy helps in covering that unlimited liability of the employer.
The policy can be purchased by any employer or contractor engaging ‘workmen’ as defined in the Workmen Compensation Act to cover his liability towards them as per the common law.
All manufacturing units with employees who fall under the purview of the Workmen's Compensation Insurance Act, 1923 have Employers' Liability exposures under the Act.
All business organisations have Employers' Liability exposures under Common Law and such organisations form the target market for this class of business.
Mainly, the policy offers the following coverages:
It is possible to extend the policy to include medical expenses incurred on the necessary treatment.
In a workers’ compensation policy, no party is at the fault. However, a worker doesn’t get any compensation in the following cases:
It is the responsibility of a company to provide safe and healthy working atmosphere for its employees. However, injured workers are one of the major financial liability issues for any business. With the help of a Workmen Compensation Policy the employer can demonstrate its ability to meet the provisions as mentioned in the worker’s compensation statutes.
Key Benefits - covers employees bodily injury or death while on the job The Workmen's Compensation Insurance Policy provides for legal liability coverage for compensation to your employees for bodily injury or death caused due to accidents / occupational diseases arising out of and in course of employment. The workmen's compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy the obligations imposed by the worker's compensation statutes. It is compensation payable under a scheme set out in the Workmen's Compensation Act of India, monitored by the Ministry of Labour.
This product is addressed to:
The policy covers legal liability of an employer under:
Table 'A' - Indemnity against legal liability to all employees (whether or not coming within the definition of the term Workmen) under the W.C.Act 1923 and subsequent amendment to the said Act prior to the date of issue of the policy, the Fatal Accidents Act, 1855 and at Common Law
Table 'B' - Indemnity against legal liability under the Fatal Accidents Act, 1855 and Common Law. (Table 'B' policies may not be issued to cover employees who fall within the definition of "Workmen" under the Workmen's Compensation Act, 1923 as amended)
