Workmen compensation insurance, also known as workers' comp, is a type of insurance that provides financial protection for employees who get injured while working. In India, it is mandatory for all companies to have this insurance. The Employee/Worker Compensation Policy helps the employer financially compensate employees who are injured or die because of an accident that happened while they were working. Worker compensation covers injuries, disabilities, and deaths of employees caused by accidents during their job.Read more
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The Workmen Compensation Act, 1923 is an employee compensation act that makes it mandatory for employers to pay employees for any work-related injury or disability. The act was created to help protect workers from the financial burden of work-related injuries and disabilities. The policy provides coverage to employees who get injured or disabled due to a work-related accident in places like factories, construction sites, mines, plantations, etc.
Here are some of the reasons why all employers should buy a workmen comp. insurance cover:
The policy provides coverage for the following:
Here are the add-ons provided under WC Policy:
The workers compensation insurance policy does not provide coverage for the following conditions:
The compensation to be paid by the employer depends on the age of the workman, the nature of his injury and the average monthly salary or wages paid to him. However, the minimum and maximum compensation rates are fixed for death and disability, subject to timely revisions. In case of the death of the workmen, the employer is supposed to pay compensation to the dependents of that workman.
The Ministry of Labour & Employment in India has formed the ‘Social Security Division. It is responsible for framing social security policies for the workmen and ensuring their implementation as well as enforcing the workmen compensation Act in India. However, the various state governments administer the act through Workmen’s Compensation Commissioners.Read More
Refer to the table below to learn about the amount payable under employee compensation:
|Nature of Claim||Amount of Claim|
|Accidental Death||(50% * Age Factor * Wages) OR Rs 1,20,000 Whichever is higher|
|Permanent Total Disability||(60% * Age Factor * Wages) Permanent Total Disability Or Rs 1,20,000 Whichever is higher|
|Permanent Partial Disability||Loss of earning capacity prescribed by a medical practitioner/Based on % disability * Age Factor * Wages|
|Temporary total disability||25% * No. of days of absence/disability * Wages / 15|
Various insurance companies offer Employee Compensation Insurance/labour insurance policy plans online and one may get confused in selecting the most suitable policy. Moreover, worker 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 keyman insurance plans, he/she can get the most suitable option. A reliable web aggregator asks certain questions to the prospect and shows the result based on these them. This is how you can find a suitable WC policy for your business.
Follow the steps below to raise a claim under WC Insurance Policy:
For all kinds of claims:
01 Apr 2023The workmen's compensation policy offers coverage to the injured
30 Mar 2023Workmen compensation insurance offers appropriate compensation
30 Mar 2023The Workmen Compensation Act of 1923 is brought to assist
27 Mar 2023Every business wishes to ensure the safety and welfare of their
24 Mar 2023Construction sites are prone to accidents. It is the duty of the