Workers in India are entitled to a safe working environment as per the law. Employers can be held legally liable if an employee suffers from any workplace related injury. Workplace-related accidents and injuries are a common occurrence and such injuries leave the family of employees in an extremely vulnerable position since the injured worker faces a loss of earnings.
What is Workmen Compensation Insurance?
Workmen Compensation Insurance Policy is a type of legal liability insurance policy which reimburses the employers for any form of disability suffered by the employees during the course of their employment.
What are the advantages of a Workmen’s Compensation Insurance Policy?
Indemnity against the legal liability of the employer: Employers can be held legally liable for any form of workplace related accidental disability or death faced by the employee. The employer needs to provide compensation to the employees’ family in such a case. A WC Insurance Policy will take care of the legal liability of the employer to provide financial compensation to the employee.
Financial help to employees’ family: The compensation received from the Workmen’s Compensation Insurance Policy can be of great help as the family of the employee who has died or suffered from permanent disability will surely face loss of income. The employees will receive different compensation amounts depending on whether he has suffered from Accidental Death, Permanent Total Disability, Permanent Partial Disability or Temporary (Total or Partial) Disability.
Compensation for Medical Expenses: Employers can opt for Medical Extension Add-On cover which will reimburse the medical expenses that need to be covered in case the employee needs to be hospitalised for any injury suffered in the course of his/her duty.
Coverage for Occupational Diseases: The Occupational Diseases Add-On Cover under a Workmen’s Compensation Insurance Policy provides coverage even for Occupational Diseases contracted by the employees in the course of their employment.
Which Insurance Companies offer Workmen’s Compensation Insurance Policy in India?
Following insurance companies offer Workmen’s Compensation Insurance Policy in India:
1. Bajaj Allianz Workers Compensation Insurance Policy
2. New India Assurance Workmen’s Compensation Insurance Policy
3. Tata AIG Workmen’s Compensation Insurance Policy
4. HDFC Ergo Workmen’s Compensation Insurance Policy
5. GoDigit Workmen’s Compensation Insurance Policy
How does a Workmen’s Compensation Insurance Policy help employees?
A Workmen’s Compensation Insurance Policy helps the injured or deceased employees by providing financial compensation to the employee’s family. The compensation amount received from a WC Policy is extremely essential as to sustain the family as the worker normally faces a loss of earning capacity after suffering from a disability due to an accident at the workplace.
Who should purchase a Workers Compensation Insurance Policy?
Any company which is involved in a manufacturing business or the construction business where the workers are operating in a risky environment should purchase a Workmen’s Compensation Insurance Policy. Also, even service businesses such as an IT Firm which has a lot of employees should also buy a Workmen’s Compensation Insurance Policy for employees.