As an employer, you are responsible to provide a safe and healthy working environment. Workplace injury and worker compensation are considered huge liabilities for employers. Their well-being, safety and health are keys to long-term success. Workers’ compensation ensures that the workers are sufficiently compensated if they sustain an injury at work. The Workers' Compensation for injured workers thus acts as a financial safety net during an emergency.
The Workmen Compensation Act drafts in detail the situations of payment of workers’ compensation to injured workers. Under the below three conditions the employer shall pay compensation:
- If a worker suffers from an occupational disease that has resulted due to the injury caused by an accident at work. The occupational diseases are mentioned under Part A, B, and C of Schedule III.
- A worker sustaining an injury at work leading to a partial or total disability
- Death of an employee due to an occupational hazard
Section 4 of the Act mentions the provisions for the calculation of the compensation amount payable by the employer. Also, it is to be noted that as per the new rule by the government, the wage considered for computing compensation under the Act is Rs 15,000.
Claim Amount= Amount equal to 50% of the monthly wages of the deceased worker X the relevant factor
OR
Amount of Rs 1,20,000, whichever is more
Claim Amount= Amount equal to 60% of the monthly wages of the injured worker X the relevant factor
OR
Amount of Rs 1,20,000, whichever is more.
Workmen Compensation insurance is the chief method by which an employer can establish his ability to fulfil the obligations imposed by the law, namely through the Workers Compensation Act.
- It protects employees or workers financially if they have suffered any injury or illness at their workplace. It also helps them get back to their work
- Reduces financial losses of the business arising from medical support needed for the injured employees, and the costs of lawsuits
- Limits exposure to lawsuits, thus maintaining a positive brand image
- Helps keep business fulfil the statutory requirement and keep in line with the Workmen's Compensation Act, 1923
- Make sure all the safety and security precautions are taken care of
- Ensure your employees are aware of the safety process and are being followed by them
- Opt for an adequate Sum Insured for the worker compensation policy
- Be aware of the points that are not covered in the policy
What type of business do you run?
Conclusion
When a worker suffers an injury, he may suffer various financial problems due to mounting medical bills. He may also be under pressure to get back to work as soon as possible. Workers’ compensation for injured workers offers excellent protection for the workforce and plays an essential role in a country’s economic growth.
Insurance
Calculators
Payment Methods
Secured With
Follow us on
Expert advice made easy
