Workmen Compensation Policy covers the legal liabilities of the employer by offering financial compensation to their workforce as per the Workmen Compensation Act of 1923. The WC policy provides insurance benefits to the employees in case of work-related injuries or mishaps
Worker's Compensation is a legal obligation mandated by government regulations. This legislative mandate ensures that employees have access to financial security in the unfortunate event of deadly accidents. The provision helps employees and their families handle unexpected events, creating a safer and more secure work environment.
Here are some of the reasons why all employers should buy workmen compensation insurance coverage:
· Workman compensation insurance can protect your business from law suits related to employees' injuries.
· You can get coverage for temporary and contract employees. Many workmen compensation insurance policies will cover temporary and contractual
· By having a WC policy, you are protecting both - yourself and your employees.
· If the worker is unable to work due to injury, then the workmen compensation insurance policy will provide the insured with a monthly wage until the worker can return to work.
· Workmen Compensation Insurance also covers death benefits if an employee is fatally injured while on the job.
· Fines and penalties for not having workmen compensation policy can be expensive, so it is better to purchase this insurance policy.
The workers compensation insurance provides coverage for the following:
1. Death Benefits: WC policy offers financial support to the dependents of an employee who loses their life due to a workplace incident.
2. Accidental Injuries: The policy covers medical expenses and compensation for injuries that occur during the course of employment.
3. Work-Related Illnesses: The Workers Compensation Insurance provides coverage for occupational diseases. They refer to health issues or diseases caused by exposure to harmful conditions or substances at work.
4. Disability Coverage: The policy also compensates employees with partial or permanent disabilities due to workplace accidents or injuries.
5. Temporary Disability Benefits: WC policy ensures financial assistance for employees unable to work temporarily while recovering from a work-related injury or illness.
6. Legal and Approved Expenses: The policy covers legal fees and additional costs incurred with the company's approval, especially in cases requiring legal involvement.
Conditions Regarding Workmen Compensation
The compensation to be paid by the employer depends on the age of the workman, the nature of his injury and the average monthly salary or wages paid to him. However, the minimum and maximum compensation rates are fixed for death and disability, subject to timely revisions. Furthermore, in the event of a worker's death, the employer must compensate their dependents.
The Ministry of Labour & Employment in India has formed the ‘Social Security Division. It is responsible for framing social security policies for the workmen and ensuring their implementation as well as enforcing the Workman Compensation Act in India. However, the various state governments administer the act through Workmen’s Compensation Commissioners.
