The workmen Compensation policy cover the legal liabilities of the employer by providing financial compensation to their employees in case of work related injuries or mishaps. the policy provide complete financial support to workers for medical expenses, rehabilition, and lost wages caused by temporary and permanent disability due to work related incidents.
Why do you need Worker Compensation Insurance Policy
Six Ways
Here are some of the reason why all employees should buy workmen compensation insurance Cover –
- Workmen Compensation insurance can protect your business from lawsuit related to employees injuries.
- you can get coverage for temporary and contract workers, many workmen compensation policies will cover temporary and contract workers.
- By having worker Compensation insurance you are protecting both yourself and your employees.
- If the worker is unable to work due to any injury then the employee compensation insurance policy will provide the insured with a monthly income until the worker can return to work.
- Workmen Insurance Compensation also cover death benefit if the employee is fatally injured with an job.
- Fines and penalities for not having compensation policy can be expensive , so it is better to purchase to the insurance policy.
Type of Workmen Compensation
There are two types-
- Named- In this policy the name of the employee will be explectily mentioned in the policy copy.
- Unnamed- In this policy it is not obligatory to specify the name of worker and employee
What does Compensation Insurance Policy Cover
The workers Compensation insurance policy cover-
- injury caused due to an accident during employment
- Partial and Permanent disability
- Temporary disability or death
- Legal cost as well as expenses incurred with the company consent.
Workmen Compensation Insurance Add ons
The Add ons are -
Sub Contractor Cover - if a contractor hires a subcontractor, and the subcontractor does not have a employee compensation policy, the contractor can opt for the sub contractor add on cover in this case.
Medical Extension- the employer can purchase the medical extension add on. however it will only be applicable when the workmen has been hospitalized for more than 24 hours.
Terrorism - there is an add on for terrorism in the worker compensation policy. it can provide coverage for the loss or damage caused due to terrorist attack.
Worker Compensation Exclusive
Nine Ways
the workmen compensation policy does not provide coverage for following condition –
- Injuries that are not fatal.
- no coverage for initial 3 days of disability where the disablement is lesser than 28 days.
- All the injuries that does not cause partial disablement for more than 3 days.
- accident and injury caused under influence of alcohol.
- Liability faced by employees of contractors.
- Liability of insured is observed under an agreement.
- the employer who are not considered workers according to the workmen compensation act 1923/Employee compensation act.
- Disease that are specified in part C of workmen compensation act 1923.
- any change made in the policy after the workmen compensation policy is active will not be covered.
Worker Compensation Condition
The compensation to be paid by the employer depends on the age of the workmen, the nature of his injury and the average monthly salary paid to it. however the minimum and maximum compensation rate are fixed for death and disability subject to timely revision. in case of the death of workmen the employer is supposed to pay compensation to the dependents of that workmen.
the ministry of labour and employment in India has formed the social security division. it is responsible for framing social security policies for the workmen and insuring their implementation as well as enforcing the workmen compensation act in India. however the various state government administer the act through workmen compensation commisioners.
Worker Compensation Documents
Eight Things
Document Require –
- Duly filled and signed claim form
- Medical Bills
- Record of compensation
- For permanent disablement claim
- Medical certificate related to disablement
- MOM aggrement as per WC act of between insured employer and injurred workmen
- for temporary disablemt
- medical certificate to the disablement
Document require in case of fatal claim –
- Death certificate
- FIR if any
- Postmartem report copy
- the stateman given by wittness
- Duly filled form ‘A’ given by employees compensation
