Workers/Workmen Compensation Insurance Policy

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.

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Workmen/Workers Compensation Act in India

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.

Why Do You Need Workers Compensation Insurance Policy?

Here are some of the reasons why all employers should buy a workmen comp. insurance cover:

  • Workman compensation insurance can protect your business from lawsuits related to employees' injuries.
  • You can get coverage for temporary and contract workers, many workmen's compensation policies will cover temporary and contract workers.
  • By having workers compensation, you are protecting both yourself and your employees.
  • If the worker is unable to work due to injury then this insurance policy will provide the insured with a monthly income until the worker can return to work.
  • Workman Compensation insurance also covers death benefits if an employee is fatally injured while on the job.
  • Fines and penalties for not having workmen compensation insurance can be expensive, so it is better to purchase this insurance policy.

Workers compensation exclusions

What does Workers Compensation Policy cover?

The policy provides coverage for the following:

  • Injury caused due to a disease or gone worse by the conditions of the employment.
  • Injury caused due to an accident during employment.
  • Partial and permanent disability
  • Temporary disability or Death
  • Legal costs as well as expenses incurred with the company's consent

Workers Compensation Policy: Add-ons

Here are the add-ons provided under WC Policy:

  • Sub-contractors cover: If a contractor hires a sub-contractor and that sub-contractor does not have a workmen compensation policy then in this case the contractor can opt for the sub-contractor add-on cover.
  • Medical extension: The employer can purchase the medical extension add-on but it will only be applicable when the workman has been hospitalized for more than 24 hours.
  • Terrorism: There is a terrorism add-on that can provide coverage for the loss or damage caused due to terrorist attacks.

Workers Compensation Policy: Exclusions

The workers compensation insurance policy does not provide coverage for the following conditions:

  • Injuries that are not fatal.
  • No coverage for the initial 3 days of disability where total disablement is lesser than 28 days.
  • All the injuries that do not cause partial disablement for more than 3 days.
  • Accident or injury caused under the influence of alcohol or drug.
  • Liabilities faced by the employees of contractors.
  • Liability of the insured is assumed under an agreement.
  • The employees who are not considered workers according to the Workmen Compensation Act.
  • Diseases that are specified in part ‘C’ of ‘Workmen’s Compensation Act, 1923.
  • Any changes made in the policy after the policy is active will not be covered.

Workers compensation coverage

Conditions Regarding Worker Compensation

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 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 & 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.

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Condition regarding workers compensation

Amount Payable under Insurance Workmen Compensation

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
*Central Government notification prescribed that the maximum amount of wages considered for compensation is Rs 15,000/month.

How to Find Suitable Employee/Labour Insurance Policy Online

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.

Workman Compensation Insurance: Claiming Process

Follow the steps below to raise a claim under WC Insurance Policy:

  • Inform the factory inspector if an accident happens in the manufacturing plant.
  • Then the insured employer will send a written notice to the insurance company about the disablement or death of the workmen.
  • A trained investigator is appointed by the insurance company to cross-check the authenticity of the raised claim.
  • Collect all the information and documentary evidence as the insurance company may require.
  • If the workmen compensation commissioner sends any notice, forward it to the insurer.
  • At the same time submit a claim form along with relevant documents.
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Workers compensation claim process

WC Insurance Policy: Required Documents

For all kinds of claims:

  • Duly filled and signed claim form
  • Medical bills
  • Records of Compensation
  • For permanent disablement claims
  • Medical certificate related to disablement
  • Memorandum of agreement as per the WC Act between insured employer and injured workmen
  • For temporary disablement
  • Medical certificate related to the disablement

In case of fatal claims:

  • Death certificate
  • FIR, if any
  • Postmortem report copy
  • The statement given by witnesses, if any
  • Duly filled Form ‘A’ given by Workmen Compensation Act.

Workmen Compensation Policy- FAQs

Average Rating
(Based on 61 Reviews)

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Workmen Compensation Insurance Reviews & Ratings
4.2 / 5 (Based on 61 Reviews)
(Showing Newest 10 reviews)
Sanket
Tanur, May 23, 2022
Medical extension add on
I was looking for a workamn compensation plan that could provide the constructions workers with medical coverage. SInce the basic insurance plan does not provide this cover i had to add an add on that provided me with a extended medical cover. Thanks Policybazaar.
Rahul
Ludhiana, May 22, 2022
Additional discount
I recently renewed my workmen compensation plan. It has been two years since I have been their customer for three years now and got an additional discount on renewal.
Tejas
Asansol, May 18, 2022
Fair cost
I just renewed the Workmen Compensation Insurance that I had purchased for my employees from Policybazaar. During the renewal process, I added some extra advantages that I obtained at a fair cost. This has improved my strategy. I m like the plan a lot more now.
Amrish
Nagpur, May 14, 2022
Faster claims
In my workmen s compensation insurance, I m covered for disability, bodily injury, and death of employees. When I purchased the plan from Policybazaar, there was less paperwork involved. Faster claim settlement is a service provided by the company.
Sanket
Chandigarh, May 10, 2022
Good deal
In order to ensure the safety of my industrial workers, I decided to insure them. One of my business associates recommended that I go to Policy Bazaar. I went there and got a good deal on workers compensation insurance.
Virendra
Hamirpur, May 06, 2022
Extra advantages
I just renewed the Workmen Compensation Insurance that I had purchased for my employees from Policybazaar. During the renewal process, I added some extra advantages that I obtained at a fair cost. This has improved my strategy. I m like the plan a lot more now.
Sunil
Ludhiana, May 02, 2022
quite helpful
I ve been utilising a workmen s compensation insurance that I purchased from policy bazaar for the past two years. Due to an industrial short circuit, four of my staff were severely hurt. I submitted a claim and received it within a few days. Their staff is quite helpful. I was pleased with their service.
Manish
Mysore, April 28, 2022
Varities of policies for my workers
I m a contractor, and I needed to acquire insurance for my labours and workers. I found policy bazaar, where I was able to get a variety of policies for my workers. I am delighted to be a customer of theirs.
Mohit
Shimla, April 24, 2022
Helped me in evry step
After an accident at my company left one of my employees gravely injured, I got this policy a year ago. I made a claim, and the process was quite straightforward, and they helped me every step of the way. I ll tell everyone about it.
Sahil
Varanasi, April 20, 2022
Discount on premium cost
Based on the size of my group, my insurance provider provided me a little discount on the premium cost of the group personal accident insurance cover that I got from Policybazaar. Accidental death, disability, ambulance bills, and other benefits are available.
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