Workers' Compensation Insurance and Employee Negligence

What is the Workers Compensation Act, 1923?

The Workers Compensation Act, 1923 is an employee compensation act. Under this act, employers are required to financially compensate their workers in case of an event such as a fatal accident or injury that happens during employment. The dependents of the employees are entitled to financial support if they die or are rendered disabled due to an accident or injury. Employers are also required to compensate for specific occupational diseases caused during the working hours.

This act primarily applies to workers working in factories, plantations, mines, construction sites or other dangerous occupations. It may also cover employees from the railway department and those in similar capacities.

In case of death and disability, the maximum and minimum ranges of compensations are fixed and are subject to regular revisions.

What is Workers Compensation Insurance?

No matter how many preventive measures you take at your workplace, accidents can sometimes be inevitable. A Workers Compensation Insurance can provide your employees with financial compensation in case of any unfortunate event.

Workers Compensation Insurance, also known as Workmen's Compensation Insurance or Employees Compensation Insurance is a type of commercial insurance policy that provides coverage for your employees who are disabled, injured or lose their lives due to their jobs.

Employee Negligence and Workers Compensation Insurance

Employees or workers have a duty to their employers to carry out their jobs with utmost care in order to avoid any harm, accidents or injury. Employee negligence may occur when an employee cannot fulfil this duty, causing some form of damage or harm.

A Workers' Compensation Policy is a safe route to help employees be compensated for damages or injury. In most cases, however, the insurance companies do not cover damages caused due to employee negligence.

Situations When Employee Negligence is Not Considered for Compensation

A Workmen Compensation Insurance claim can be termed invalid in the following situations.

• If the employee is under the influence of alcohol or drugs and sustains an injury at the workplace, it will not be considered a legitimate claim
• If the employee sustains an injury as a result of any act of intentional self-injury. Then it will not be covered under Workmen Compensation Insurance
• If the employee neglects the safety protocols as set by the company
• If the employee is involved in any unlawful activity while at work, the claims are not considered legitimate

Conclusion

The Workers Compensation Insurance is extremely helpful for businesses, as it can help protect them from high compensation amounts and lawsuit expenses. For employees, it protects them from financial setbacks suffered due to a disability from an accident at work. Policybazaar offers end-to-end technology that enables a quick and seamless process for overall employee benefits and insurance, catering to your business needs.