Benefits Of Workmen Compensation Policy

For any business, its employees are its backbone. Proper functioning of a business as well as it profits are dependent on the employees hired. The employer, therefore must ensure a safe and secure work space for his employees. 

It must be understood that accidents at the workplace are quite common, some of which could be very serious or life threatening. In these cases, employers shall be liable to pay an  adequate sum as compensation to injured employee(s) or their nominee.

A legal insurance plays an important role in protecting the businesses from problems where a huge amount would be demanded as compensation. To ensure an affordable health care act has been devised by your business house, it is important that you consult an experienced insurance claim lawyer.

What is Workmen’s Compensation Insurance Policy?

A Workmen’s Compensation Insurance Policy is the kind of insurance policy, designed to protect the employees in financial terms in case an accident is caused at the workplace.

Workmen’s Compensation Act, 1923 provides for the framework of the compensation policy for workmen, which would help employers ensure their legal liability towards their employees.

Some of the important features of the Workmen’s Insurance Policy are-

• Compensation to the family of the employee in case of a death caused due to an accident at the work place
• Compensation to the employee and/ or his family for injury caused due to a workplace accident, for injuries which may be- 
• Permanent total disability
• Permanent partial disability
• Temporary disability (Total or partial alike)
•  Compensation will be paid to the employee and/ or his family for such injury or death which is caused due to occupational disease.

The provisions of the Workmen Compensation Policy will be applied to people employed in India, as well as to the foreign nationals who have been employed by an Indian Company. 

Employees belonging to different fields shall be covered under the Workers' Compensation Insurance Policy-

• Manufacturing firms
• Services firms
• Trading firms

How is Workmen’s Compensation Insurance beneficial to the employers ?

In many countries it is mandatory for the businesses to pay proper compensation to their employees in case of a workplace hazard, which includes India as well. A Workmen’s Compensation policy would be beneficial to the business owners in many ways-

• Meets statutory requirements

As has been provided under the the Employee’s Compensation Act, 1923 and Indian Fatal Accidents Act, 1855, it is mandatory for all companies in India to provide adequate compensation for its employees. The Policy would help business owner to follow these statutory requirements. To ensure that the policy accepted by your business is in accordance to the Acts of 1923 and 1855, it is important that you consult a lawyer at the Sharks of Law. 

• Complete protection for employees

Any injury or death of an employee, caused at the work place may cause a huge liability for the  organisation. With the Workmen Compensation policy, the employer would be able to get such  liabilities covered and will be able to provide a comprehensive protection to his or her employees against such risk of work-related injuries, or death caused. For further information on the subject, it is advised that you contact an experienced insurance claim lawyer.

What shall be covered under the Workmen’s Compensation Policy ?

The Employee’s Compensation Policy would generally cover the following:

• Bodily injuries faced by an employee due to an accident during the course of employment.
• Medical treatment of such disease which was caused or aggravated due to the circumstances of the employment.
• Death of the employee which was caused due to work-related hazard.
• Partial or permanent total disability which has been caused due to a work-related hazard.

In case you have suffered from workplace injury and are not sure as to how you should deal with the matter or what should be a proper approach on your side, you may contact us at Sharks of Law for legal consultation. 

What would not be covered under the Workmen Compensation policy?

Listed below are some common cases where Workmen Compensation Policy could not be applied-

• Such injury which is caused due to war, invasion, or other related situations
• Such injury which has not resulted in total or partial disablement of the employee for a period of more than three days.
• Accidents which have been caused under the influence of drugs or alcohol
• For such accidents which have been caused as the employee himself disregarded safety protocols

Conclusion

Workmen’s Compensation insurance policy is necessary for a business in order to protect its working capital against such high compensation amounts which would be required to be paid in  case of a severe injury or death of the employee caused during the duty hours. 

Workmen Compensation Policy is mandatory as has been provided under the Employee’s Compensation Act of 1923 and Indian Fatal Accidents Act of 1855. 

For further information on the subject of Insurance for your business or to consult a lawyer so as to to have a better understanding of the procedures to be followed when applying for Workmen Compensation Insurance Policy, you may contact us at Sharks of Law.

Email:-helpdesk@sharksoflaw.com

Help Desk:-+91-88770-01993