A labour-intensive business is very susceptible to injuries, accidents, and even fatalities (deaths). And any loss in the workforce is not good for your business nor the family of the affected both emotionally and financially.
While the loss of human life in a labour intensive business is unfortunate, at the same time it also raises a liability for the employer to meet certain obligations as imposed by the Workmen Compensation Act.
This can raise unwanted expenses for the employer/business.
To avoid that immediate and unwanted expense, Workmen Compensation Insurance is exactly what you need as an employer.
So basically, it is a commercial insurance policy that enables employers to meet their legal obligation of providing financial aid to the affected worker or his family in case of an accident or death.
Now after knowing what exactly insurance for workmen is. We’re certain that some questions are already popping into your mind.
So sit back and relax, we’re just about to cover every possible query that you as an employer may have regarding Workmen Compensation Insurance.
Let’s begin.
Is Workmen Compensation Insurance mandatory in India?
Yes! According to Workmen Compensation Act 1923. It is mandatory for companies to provide compensation in the form of insurance to their workers.
What does a workmen insurance policy cover?
Coverages of this policy are:
- Death or permanent disability
- Partial disability
Should I purchase workmen insurance online?
A 100% yes. You should definitely buy workmen insurance online as you get to browse through various policies and you can choose the best based on your requirement.
And not just that, when you purchase this policy online the activation process is also really fast and reliable.
Who is liable to compensate the employee?
If you have purchased the workmen compensation insurance then it is the responsibility of the insurer to secure you from compensating the employee. In simple words, It is the responsibility of the insurer to handle the compensation.
However, just in case If it was allowed under the law to not mandatorily purchase Workmen Compensation Insurance, then it would have fallen upon you to cover the compensation for an affected worker/employee.
What are some Exclusions in the workmen's compensation insurance?
Normally, the exclusions also differ according to the different policies, however, some of the common exclusions that there are, are as follows:
- Harmless or non-fatal injuries
- All the diseases that are specified in part ‘c’ of the Workmen Compensation Act/Employee Compensation Act 1923
- Any injury or accident that happened under the influence of alcohol or drugs
- Any injury or accident that happened due to war, nuclear attack, or riot
- Any injury caused due to deliberated removal of security device or due to carelessness/disregard of security norms
- The first 3 days of disablement and if the total disablement is lesser than 28 days
- Any injury that does not cause any partial disablement for more than 28 days
- Any liabilities faced by the employees of the contractors
What documents are required to file the claim?
For all kinds of claims
- Properly filled and signed claim form
- Medical invoices
- Compensation records
For permanent disablement claims
- Certificate clarifying the state of disablement
For temporary disablement
- Medical invoices
- Certificate clarifying the state of disablement
For claims in case of death
- Death Certificate
- Final investigation report
- Postmortem report
- Any statement from any witnesses
- Form A (under Employee Compensation Act) completely filled by the insured
What are some of the famous workmen insurance providing companies?
- Tata AIG
- HDFC Ergo
- Reliance General
- United India Insurance Companies
- IFFCO Tokio
- New India Insurance
- Bharti Axa
- Raheja QBE
So there you have it. Here we have covered all the basic queries that you as an employer might have before he considers purchasing employee compensation insurance.
Where can you buy Workmen Compensation Insurance easily?
You can buy Workmen Compensation Insurance instantly on J Insurance.
You can also browse a dozen of workmen's compensation insurance from the best insurance companies and get an instant quote from J Insurance.
Thanks for reading this through!
