Advantages of Workers' Compensation Insurance

The secret behind the success of any organisation is its employees. In case the employees face bodily injury or illness during or because of their work, there should be a reliable support to compensate them. Here's everything you should know about the benefits of workmen's compensation insurance in India.

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Does India have Workers' Compensation Insurance?

Yes, workmen’s compensation insurance in India is provided by several insurers. Like many other countries, India too requires employers to provide their workers compensation in case of injury or death.

To meet this requirement, several workers’ compensation insurance plans are available in India. Some insurers that offer worker’s compensation insurance:

Go Digit General Insurance Limited Raheja QBE General Insurance Company Limited. Reliance General Insurance Company Limited
Universal Sompo General Insurance Co Ltd. Bajaj Allianz General Insurance Company Future Generali India Insurance Company Ltd.
Royal Sundaram General Insurance Co. Limited Shriram General Insurance Co. Ltd.

This plan is very useful for workers who are employed in construction sites, factories, plantations, mines etc. The chances of facing occupational diseases are higher as they can get injured, disabled or worse resulting in medical costs and lost wages.

What is the Main Purpose of Workers’ Compensation Insurance?

  • The main purpose of workmen's compensation insurance is to help the injured or deceased employee's family. This can be offered through financial support which will help cover their treatment or other necessary expenses that the family has.
  • Since the worker is not in a condition to work or worse, it's a justified safeguard against occupational hazards and diseases.
  • Legally too, employers are bound to provide workmen's compensation to their employees.
  • As per the 2017 amendment in the Employee Compensation Act (1923), it is mandatory for employer to inform their employees about their compensation rights. These should be communicated in their regional/local languages too.
  • Thus, providing worker’s compensation insurance is an employer’s statutory liability and they must meet this condition by law.

Main Purpose of Workers’ Compensation Insurance

Thus, providing worker’s compensation insurance is an employer’s statutory liability and they must meet this condition by law.

What are the Advantages of Workers’ Compensation Claim?

Advantages of Workers’ Compensation Claim

  • The exact benefits offered by workmen's compensation insurance can vary from insurer to insurer. It will also depend on the types of coverage that that employer opts for. Following are the benefits of the Workmen's compensation insurance policy:
  • Covers many work-related accidents that can cause temporary disability, permanent total disability, permanent partial disability, and death
  • Offers indemnity against any legal liabilities that may arise because of an employee's accident or fatal injury
  • Offers necessary protection from medical expenses that the injured employee requires
  • It will ensure that bulky medical bills are taken care of and their dependents have some financial help
  • The compensation amount is provided to the victim or their family in case of an industrial accident, which is helpful during the difficulty

Is Workers’ Compensation Beneficial to the Employer?

Definitely! Besides providing a safeguard against accidents, having a worker’s compensation insurance is useful for an employer too:

  • Firstly, it meets their statutory requirements as per the Workmen's Compensation Act 1923 (now known as the Employees Compensation Act)
  • As it promotes employee's safety and interests, it will provide a healthy work environment and reduce complaints in the workplace.
  • In case of an accident at work, employers will be covered for legal costs due to lawsuits
  • Any medical expenses because of workplace accidents will also be taken care of

Over to You,

The well-being of employees is every employer's responsibility. Occupational ailments or industrial accidents are common in mines, plantations and other factories. To minimise their devastating impact on the employees, a worker's compensation insurance policy is absolutely necessary.

Written By: PolicyBazaar - Updated: 18 August 2022