Workers' Compensation Insurance & Injury Leave

Workers’ Compensation & Injury Leave in India

The compensation law is widely prevalent in many parts of the world. The compensation rights in case of work-related injury or disease are taken care of using this law in many nations. The framework and other aspects however differ from country to country.

In India, this law is more commonly known as Employee Compensation and is governed by The Employee Compensation Act of 1923. The Act doesn’t shed detailed light on Workers’ Compensation & injury leave in India. It, however, mentions the calculations of compensation for disablement or death.

Calculating Workmen Compensation for Injured Workers

Section 4 of the Act discusses the provisions of the compensation amount to be paid by the employer. The wage considered for calculating compensation under the Act is Rs. 15,000 as per the government’s new regulations.

• In case of the death of a worker:

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

• In case of permanent total disablement:

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.

• In case of Parmanent partial disablement

A fraction of the remuneration owed for Permanent Partial Disability should be determined by assessing the extent to which the worker's earning capacity has been reduced.

• In case of Temporary disability

• Every half month, 25% of the worker's monthly wage will be disbursed.
• Compensation will be granted only if the worker remains disabled for a continuous period exceeding three days.
• The maximum duration for receiving compensation is limited to five years.

Conclusion

A Workers Compensation policy protects the parties, the employer as well as the worker, making it a win-win situation for both. As an employer, merely buying a worker’s compensation is not enough. It is also essential to learn about the various aspects such as workers' compensation & injury leave that goes with it.