Filing Lawsuit under Workers Compensation Policy

Lawsuit

The worker cannot present an appeal or file a lawsuit for not having a worker's compensation policy or liability insurance. The employer is considered to be the guardian of workers during their employment. Therefore, the employer shall be responsible to provide coverage for the damages caused to the workers. In addition, the law mandates the employer to offer appropriate damage or compensation to their employees.

Compensation According to Monthly Wage

The compensation under workmen compensation insurance varies from one state to another.

For example, many states provide two-thirds of the total monthly wages of the workers.

• Further, on the demise of the worker, the workmen compensation act offers 50% of the monthly wage by multiplying with the relevant factors given in the schedule of the Employee’s Compensation Insurance Act of 1923.
• In addition, the employer is also required to pay INR 5,000 to the dependent of the family for the funeral of the worker. Hence, the victim or dependent of the employee may institute a lawsuit against the employer if he refuses to pay compensation to the worker or dependent of the worker in case of his demise.

Application for the Compensation

The Workmen or Employee's Compensation Act of 1923 grants the following rights to the workmen.

• Section 3 of the Workmen's Compensation Act allows the worker to receive compensation for the death or disablement of the employee which may result due to personal injury by accident, which may be caused during employment.
• Section 6 empowers the workmen to apply to the commissioner for a review of the half-monthly payment in case his condition deteriorates.
• Section 10 of the same act enunciates that the workmen may apply to the commissioner if the employer fails to grant compensation to the worker. The dependent may apply in case of the death of the worker. The commissioner shall determine the claim and amount of the compensation. The workmen can also apply to the compensation if the employer does not pay an adequate amount of compensation.
• Under section 30 of the same act, the workman may appeal to the High Court if he is aggrieved by the order of the commissioner regarding the compensation.

Conclusion

An employer must purchase liability insurance or a worker's compensation policy to provide appropriate compensation to the employees. The workmen compensation act mandates that employers having more than 20 employees buy liability insurance. The employer may present an appeal for the damages caused to him during employment. However, they cannot sue the employer for not having workmen's compensation insurance.