WHO SHOULD BUY WORKMEN'S COMPENSATION INSURANCE

Workmen’s Compensation Insurance is a form of insurance coverage provided by the employer of the company that pays benefits to the employees or workers under any medical contingencies while on the job. Workmen’s compensation benefits may include partial wage replacement for the period during which the employee couldn’t work and reimbursement for sort of healthcare services and occupational therapies.

Under the Workmen’s Compensation Act 1923, it’s mandatory for every employer to pay their employees for any sort of work-related injuries or disabilities. The Act was created in order to free their employees from financial burden under critical situations. Generally, only salaried employees are eligible for workmen’s compensation insurance, not contractors and freelancers.

How to apply for Workmen’s Compensation Insurance?

Every state has their own separate boards set up for the process of Workmen’s Compensation Insurance. No two states can have the same laws and regulations. States determine the decisions on various grounds such as the number of benefits to which an employee is entitled, what impairments and injuries are covered, how impairments are to be gauged and how medical care is to be delivered. In addition, states dictate whether workmen’s compensation insurance is provided by state-run agencies and by private insurance companies or by the state alone. States are also responsible for how claims are to be handled, and how disputes are to be resolved and they may even devise strategies, such as limits on chiropractic care, to control costs.

In case the business expands to another state, the company may have to deal with different rules in the new state. In case of any minor injury or illness, the employee can avail of this Workmen’s Compensation Insurance by the following two steps:

• Jotting down and mentioning the details of the injury or illness along with the photos and names of the witness in case required.
• Reporting the injury or illness to the respective employer. And then the employer should file the employee’s claim with the insurer.

The rest process can be followed up by the respective employer’s insurance company to make sure the claim was filed aptly. In case of any denial, one can appeal the decision with the state’s Workmen’s Compensation Board.

On what basis the Workmen’s Compensation Insurance is paid?

The compensation to be paid by the employer depends on factors such as- the age of the workman, the nature of the injury, and their average monthly salary. However, the minimum and maximum compensation rates are fixed for death and disability subject to timely revisions. In case of the death of the workman, the employer is supposed to pay compensation to the dependents of that workman.

 

 

What is the need of buying a Workmen’s Insurance Policy?

The secret behind the success of any organization is its employees. The well-being of employees is every employer’s utmost responsibility. Any occupational ailments or industrial accidents are common in mines, plantations, and other factories. So, in order to minimize their devastating impact on the employees, a Workmen’s Insurance Policy becomes absolutely necessary.

Moreover, there are a plethora of other reasons too that makes this insurance policy of vital importance. Let’s dive into some of these:

1. Workmen’s Compensation Insurance can protect the business from lawsuits related to employees.
2. It can provide medical coverage to even temporary and contractual workers or employees.
3. If the worker or employee is unable to work due to any injury caused, then the employer doesn’t need to worry about any incurs as the amount will be borne out by the insurance policy company until the employee returns back to the work.
4. Workmen’s Compensation Insurance also covers death benefits in case of any fatal injury while on the job.
5. Fines and penalties for not having Workmen’s Compensation Insurance can be expensive so it’s better to have them.

Key Takeaways

Workers of the gig economy are denied access to the benefits of this Worker’s Compensation Insurance. Contractors and freelancers are rarely eligible. Workers refrained to sue their employer for availing of this compensation insurance by agreeing to a no-fault contract in doing so. However, state legislation and court rulings in several states have restored the employees’ right to sue in various strictly defined circumstances.

FAQs (Frequently Asked Questions)

Q1. Why is Workmen’s Compensation Insurance needed?

Ans: Workmen’s or Worker’s Compensation Insurance is needed to ensure the safety of the employees in case of any medical contingencies due to hazardous accidents on the job.

Q2. Is Workmen’s Compensation Insurance the same all across India?

Ans: No, it’s not the same all over India and varies from one state to another. Every state has their own Workmen’s Compensation Board with their different rules and regulations.

Q3. Who are eligible for Workmen’s Compensation Insurance?