Workmen compensation is mandatory in many countries even if the organization has only one worker. It is mandatory to cover employees under worker’s compensation insurance.
A good, active safety program will not only keep your employees safe, but it will also save your extra expenses. Make sure you use methods to lower the chance of accidents. This will help you to get a worker’s compensation insurance at an affordable premium amount.
It helps the employer to protect the most valuable asset of the organization, i.e. employees. In a situation where the job profile involves certain risks that can cause injury or causes the death of an employee, this insurance policy works like a shield and protects the employer against heavy expenses incurred due to handling workers’ liability. Remember, with workmen compensation, you can ensure safety for your employees or workers at an affordable price and limit your liabilities against any adverse situations.
This insurance is mandatory under The Workmen’s Compensation Act, 1923, in India. It is important for both the employee and the employers. In India, for all manufacturing units with more than 20 employees, having a Workmen's Compensation Insurance is mandatory to have insurance benefits for workers or employees as per the Employees’ State Insurance Act, 1948. Likewise, for all companies or manufacturing units with less than 20 employees, it is important to ensure Workmen’s Compensation Insurance according to the Workmen's Compensation Insurance Act, 1923 and Indian Fatal Accidents Act, 1855.
This policy helps the employers to avoid the extra expenses incurred in case any worker meets any unfortunate events while working in the organisation. Workmen compensation insurance bears the cost incurred due to treatment on behalf of the employer.
As an employer, you are liable to pay compensation in case of death, permanent total or partial disability and/or temporary disability. However, you would not need to pay any compensation in case of the death or disability of the employee due to the influence of alcohol, drugs or other intoxicating substances. You’re also not liable to pay any compensation in the event when the employee wilfully disobeys or disregards the safety or security rules or regulations stipulated by you or management.
First piece of legislation towards social security Deals with compensation for workers who are injured in the course of duty Benefits payable under the Act:- Employer is liable to pay compensation as per Act if personal injury is caused to workmen by accident resulting in:-
Employer is also liable to pay for following due to accident:-
If workmen contracts occupational diseases listed out in the Act, the illness is deemed to be injury by accident arising out of and in the course of the employment The name ‘Workmen’s Compensation Act’ has now been replaced with the ‘Employee’s
Death of Disablement from personal injury due to accident must be caused to workmen by accident arising out of and in course of employment.
There should be a casual relationship between the accident and the employment. Employment is the cause & Accident is the effect Minimum 3 days disablement is mandatory for any claim for disability under the Act For occupational disease contracted because of employment it is provided the employee should have been employed for a continuous period of 6 months
Claims pertaining to a period before the policy inception date are not covered. If there is a break in the renewal of the workmen compensation policy, then the coverage date is reset to the start date of the new insurance. We prevent this by ensuring timely renewal.
Claims that come about from an issue that was known before the insurance was bought are rejected. The insurer will cross examine the case closely to see when the company became aware of the matter. This can be addressed by clearly describing any known issues when you buy your first Workmen compensation insurance cover.
Insurers will reject a claim if there are contradictory reports on the accident or lack of information. Typically, insurers will compare worker, employee and police reports on an incident. There is greater scrutiny of cases where the claim was filed after a worker was terminated or laid off.