WHY DO YOU NEED A WORKERS COMPENSATION INSURANCE POLICY
While organizations try hard to make their workplace as safe as possible, any unprecedented accident might shatter everything around in no time. Therefore, it’s better to have prior considerations on such matters leveraging the benefits of the respective organization.
India is regarded as the fastest-growing economy today so it becomes even more difficult for employers to meet huge expenses resulting from employee injuries at work. In order to combat such critical situations, Worker’s Compensation Insurance becomes an essential part of any employee’s life. It’s a massive expense resulting from any workplace accident or sickness. It is useful in covering the employer’s unlimited legal liabilities to a great extent.
Reasons to Opt for Workman’s Compensation Insurance Policy
Personal Injury Coverage to the Affected Employees
In case any employee or worker is physically injured anyhow while on the work, then this compensation policy bears out all the medical expenses. The employer is free from arranging any medical treatments on behalf of its employee and thereby reducing the employer’s responsibility.
Death or Disability Coverage
Suppose any employee reaches any fatal situation like death while on the job then Workmen’s Compensation Insurance provides them with a lump sum compensation amount to the dependent (family member or any other) of the employee for their survival. In case of any major disability caused by any accidents at the workplace too, a desired compensation is offered to the employee for medical treatments.
Occupational Ailments Coverage
Any occupational ailment is a health condition that is caused by the work environment or related activities. These can be disruptive, disabling, and sometimes even fatal. It can range from asthma, bronchitis, respiratory infections, skin infections etc. Under such critical situations, the Workmen’s Compensation Insurance Policy works a tremendous job on the behalf of the employer.
Special Add-Ons Available
Special add-on features like Premiums are based on the employer’s industry classification code and payroll. Employers exceeding a certain amount of annual premium are usually eligible for experience rating, which is responsible for adjusting the premium up or down depending on the history of claims of the company relative to other companies in that industry category.Businesses with higher-than-average claims will pay a higher premium compared to those with lower claims.
Smooth Functioning of the Organization
Since the responsibility of any organization gets reduced by such compensation insurance policies, it doesn’t need to take any extra care for their employees, especially in terms of medical contingencies.
Key Takeaways
Workmen’s Compensation Insurance helps companies adhere to the Employees’ Compensation Act, of 1923 by safeguarding the safety of their employees. The policy shall be considered void in case of any misrepresentation or non-disclosure of information in the proposal by the policyholder.
FAQs - Frequently Asked Questions
Q1. On what basis is the premium for workmen’s compensation insurance calculated?
The premium entirely depends on the occupation of the employees, the number of employees insured and their cumulative wage.
Q2. Who can cancel the workmen’s compensation insurance?
Both the insurer and the insured can cancel the policy with a 15-day period of notice.
Q3. Who issues this compensation insurance to the affected employee?
It’s the employer’s responsibility to provide compensation to the employee within 30 days of making the claim.
Q4. What does deductible mean under workmen’s compensation insurance?
This is the specified amount that the employee is supposed to bear. In case the claim amount exceeds the deductible, then only the insurer is liable to pay the claim.
