A Workmen Compensation insurance policy is a commercial insurance policy that covers the legal liability of an employer to provide compensation to its workmen in case of their death or accident. Also known as employee compensation insurance or labour insurance, this insurance enables an employer to demonstrate his ability to meet the obligations imposed by the Workmen Compensation Act. It enables the employer to pay the compensation payable under the Workmen Compensation Act of India, which is monitored by the Ministry of Labour & Employment.
In other words, a workmen compensation policy covers the statutory liability of an employer for the death, disability and bodily injuries of his employees caused by accidents arising out of and during the course of their employment.
The Workmen Compensation Act, 1923 is an employee compensation act that mandates certain classes of employers to pay compensation to their employees or workmen for an accident or injury. The act enables workmen and their dependents to get compensation from their employers in case an accident or injury caused at work or due to the nature of the work results in their death or disability. It also mandates employers to pay compensation to their workmen if they end up contracting certain occupational diseases related to that employment.
The Act covers people working in factories, plantations, mines, construction works, mechanically propelled vehicles and other kinds of hazardous activities. It also includes railway employees as well as people employed in any such capacity.
The compensation to be paid by the employer depends on the age of the workmen, nature of his injury and the average monthly salary or wages paid to him. However, the minimum and the maximum compensation rate is fixed for death and disability, subject to timely revisions. In case of the death of the workmen, the employer is supposed to pay the compensation to the dependents of that workmen.
The Ministry of Labour and Employment in India has constituted the ‘Social Security Division’ which is responsible for framing social security policies for the workmen and ensuring its implementation. It is also responsible for enforcing the workmen compensation Act in India. However, the various state governments administer the Act through Workmen’s Compensation Commissioners.
The Workmen Compensation covers:
Contractor employees by charging additional premium can get coverage for:
The common exclusions of most of the workmen compensation insurance policies are:
There are various insurance companies that offer ‘Workmen Compensation Insurance' plans online and one may get confused in selecting the most suitable policy. Moreover, the workmen compensation insurance also needs jurisdiction that comes in the business area of the prospect.
However, if one takes the help of an insurance web aggregator for comparing different workmen compensation insurance plans, he/she can get the best and most suitable option. A reliable web aggregator asks certain questions to the prospect and shows the result based on these them. In this way, one can find the best workmen compensation plan for his/her business.
The steps to file the claim for workmen compensation insurance are: