Workmen Compensation Insurance Glossary

Understanding the complexities of Workmen Compensation Insurance can be challenging, particularly when faced with the numerous terms and definitions associated with this type of coverage. Whether you're purchasing a new policy or managing an existing one, understanding the terminology is crucial for making informed decisions. This Workmen Compensation Insurance Glossary provides clear explanations and definitions, helping you navigate the complexities of workmen compensation insurance with confidence.

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A

  • Accidental Death: The unfortunate event resulting in the death of a worker due to a work-related accident, entitling the dependents to compensation benefits under the Workmen's Compensation Insurance policy.

  • Actuary: A professional responsible for assessing and analyzing risks, determining insurance premiums, and estimating reserves for Workmen's Compensation Insurance policies.

  • Addendum: An additional document or attachment to the Workmen's Compensation Insurance policy that modifies or supplements the terms and conditions of coverage, often used to clarify specific provisions or add endorsements.
  • Average Monthly Wages: The average monthly earnings of a worker, calculated based on their wages over a specified period, used as a basis for determining compensation benefits under the Workmen's Compensation Act.

B

  • Benefits: Financial assistance provided to injured employees or their dependents under the Workmen's Compensation Insurance policy, including medical expenses, disability benefits, vocational rehabilitation, and survivor benefits.

C

  • Coverage: The scope of protection provided by the Workmen's Compensation Insurance policy, specifying the types of injuries, illnesses, or disabilities that are eligible for compensation.

D

  • Disability Rating: A numerical assessment of the extent of an employee's impairment due to a work-related injury or illness, used to determine the level of compensation they are entitled to receive.

  • Disfigurement: A physical condition resulting from injury or trauma that alters or damages the appearance of a person's body or face. This may include visible scars, deformities, or other permanent changes to the skin, features, or limbs. 

E

  • ESIC (Employee's State Insurance Corporation): A government organization responsible for administering the Employees' State Insurance (ESI) scheme, providing social security benefits, including medical care and compensation, to eligible employees and their dependents.

  • Employer's Liability: The legal responsibility of an employer to compensate employees for work-related injuries or illnesses that result from the employer's negligence or failure to provide a safe working environment.

  • Exclusions: Specific circumstances, conditions, or types of injuries that are not covered by the Workmen's Compensation Insurance policy, as outlined in the policy's terms and conditions.

F

  • Fraud: Deliberate deception or misrepresentation by either employers or workers to obtain unwarranted benefits under the Workmen's Compensation Insurance policy, such as exaggerating the severity of an injury or claiming non-work-related injuries as work-related.

G

  • Gross Wages: The total earnings of an employee before any deductions, used as a basis for calculating compensation benefits under the Workmen's Compensation Insurance policy.

H

  • Hazardous Occupation: Jobs or industries that involve a higher risk of work-related injuries or illnesses due to exposure to dangerous conditions, equipment, or substances.

I

  • Indemnity: Compensation or reimbursement provided to an injured worker for medical expenses, lost wages, and other related costs covered by the Workmen's Compensation Insurance policy.

J

  • Jurisdiction: The legal authority or geographical area within which Workmen's Compensation laws apply, typically determined by the location of the employer's business or the state where the injury occurred.

L

  • Lost Wages: Compensation provided to a worker to cover income lost due to a work-related injury or illness. This compensation is typically based on the worker's average earnings before the injury or illness occurred. It includes wages lost during the period of disability, including time off for medical treatment and recovery, as well as any future earning capacity affected by the injury or illness.

M

  • Ministry of Labour and Employment: The government department responsible for formulating and implementing policies related to labour and employment, including oversight of Workmen's Compensation Insurance regulations and enforcement.

  • Memorandum of Agreement: A written agreement between the employer and the injured worker, outlining the terms and conditions of compensation benefits under the Workmen's Compensation Insurance policy.

O

  • Occupational Disease: A health condition or illness caused by exposure to hazards or conditions specific to a particular occupation or industry.

P

  • Permanent Partial Disability: Permanent impairment or loss of function of a body part or bodily function resulting from a work-related injury.

  • Permanent Total Disability: Permanent incapacity or inability to work due to a work-related injury or illness.

Q

  • Qualified Medical Provider: A healthcare provider authorized by the employer or insurance carrier to provide medical treatment to injured employees under the Workmen's Compensation Insurance policy, ensuring quality care and cost containment.

R

  • Rehabilitation: Programs and services designed to help injured workers recover from their injuries or disabilities, regain functional abilities, and return to work, often provided as part of Workmen's Compensation benefits.

S

  • Social Security Division: A division within the Ministry of Labour and Employment responsible for implementing social security programs, including Workmen's Compensation Insurance, to provide financial protection to workers and their dependents.

  • Statutory Benefits: Compensation benefits mandated by state or federal Workmen's Compensation laws, including medical expenses, disability payments, vocational rehabilitation, and survivor benefits.

  • Site Inspector: An individual tasked with inspecting workplaces to ensure compliance with safety regulations, identify hazards, and assess risks to workers' health and safety. Site inspectors may be employed by government agencies, insurance companies, or private organizations. Their responsibilities include inspecting machinery, equipment, facilities, and work practices to promote a safe work environment and prevent accidents and injuries. 

T

  • Temporary Disability: A condition in which an injured worker is unable to perform their job duties for a limited period due to a work-related injury or illness.

U

  • Vocational Rehabilitation: Services and support provided to injured workers to help them return to suitable employment or acquire new job skills if they are unable to return to their previous job due to a work-related injury or disability.

V

  • Worker: An individual hired by an employer to perform work or services in exchange for wages or salary, is eligible for coverage under the Workmen's Compensation Insurance policy.

  • Workers' Compensation Board: A government agency responsible for overseeing and administering Workmen's Compensation laws, adjudicating disputes between employers and employees, and ensuring compliance with regulations.
  • Workmen Compensation Insurance: Workmen compensation insurance, also known as workers' compensation insurance, fulfills a statutory requirement and provides financial compensation and benefits to employees who sustain work-related injuries or illnesses. This insurance covers medical expenses, lost wages, rehabilitation costs, and death benefits, ensuring that employees receive necessary care and support. It also protects employers by meeting their legal obligations and limiting their liability in the event of workplace accidents.

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Policybazaar for Business - Workmen Compensation Insurance - Customer Reviews
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4.2/5
Based on 92 reviews
4.2
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Based on 92 reviews
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4.3 June 28, 2023
Abha
Positive Experience
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4 June 18, 2023
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Provides Financial Security
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3.8 April 30, 2023
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