10 Questions of Workmen Compensation Insurance Answered

1. What is Workmen's Compensation Insurance?

A workmen compensation insurance policy is a commercial policy that covers an employer’s legal liability to employees. This insurance provides compensation to employees in case of death or injury during employment.

It is also known as employee compensation insurance. This coverage helps employers meet their legal obligations under the Workmen Compensation Act

2. What Does Workmen's Compensation Cover?

A workmen’s or workers’ compensation policy covers the medical costs for the employee in case an employee gets injured due to an accident in the workplace. This insurance also covers the cost of care of the employee during the recovery period along with the loss of wages because of the accident.

In the event of the death of an employee, workers compensation coverage extends to their funeral expenses along with paying appropriate compensation to their family.

3. What Accidents are Not Covered Under Workmen’s Compensation Policy?

Workmen’s compensation policy protects the interest of both employer and employees. However, some incidents may not be covered under this insurance.

If an employee gets injured due to fighting with other employees at the workplace, they are not liable to get workplace injury compensation.

An employee who sustained injuries at the workplace for being under the influence of alcohol or any other drugs will not be covered under the workmen's compensation insurance policy.

Injuries to an employee that are not fatal are not covered under the workmen’s compensation policy.

Workers’ compensation coverage does not include liabilities faced by the employees of subcontractors (unless the subcontractor has a separate workers compensation policy for their employees).

Any intentional injuries caused to an employee will not be covered under the workmen’s compensation insurance policy.

4. Do Employers Pay the Benefits of Workmen’s Compensation?

An employer does not pay the workmen’s compensation to their employees on their own. Instead, they purchase liability insurance that offers workers compensation coverage in case they suffer an injury, develop illness, or in the event of an accidental death at the workplace.

Having a workmen’s compensation policy in place will help employers cover their legal liabilities by providing financial assistance to employees in case of workplace injuries, illness, or death.

5. How Does Workmen's Compensation Insurance Work?

The claim process of a workmen’s compensation insurance includes a few steps. Let us discuss some of these below:

Right after an injury at a factory, the employee (or others present) should inform the factory inspector about the incident.

The employer will send written notice to the insurance company informing about the injury, disablement, or death of the employee.

The insurance company appoints an investigator who cross-checks the authenticity of the incident and the raised claim.

The insurance company may require other related documents and evidence for the claim.

Also, if the employer receives any notice from the workman compensation commissioner, they need to send it to the insurance company.

In the final part, the employer will submit the claim along with all the relevant documents for the compensation of the employee.

Also, there is generally a set timeframe within which the employee needs to file a claim to get compensation. They can find out about the same during their employment at the company.

6. What Factors Affect Workmen’s Compensation?

• Certain factors can affect workmen’s compensation, such as:

• Size of the business

• State laws

• The kind of work the employees perform

• The risk factors associated with the work

7. Who is Eligible for Workmen's Compensation?

All frontline workers who work full-time, part-time, temporarily, or even casually with a company are liable to receive financial compensation under the Workmen Compensation Law. However, employees may find out about the same from their employer, the Workmen’s Compensation Board. They may also consult a lawyer about the same.

The employees will receive financial compensation such as coverage for medical bills, lost wages, and disablement. In case of the death of an employee, their family is liable to get the compensation.

8. Can an Employer Fire an Employee for Filing Workmen Compensation Claims?

No. Employers can not fire an employee for filing a workmen compensation claim as it is against the law. And if an employer still fires the employee after filing the claim, the employee can approach the labour court.

9. What Benefits are Available Under The Workmen’s Compensation Policy?

Workmen’s compensation policy covers the cost of medical bills of the employee who suffered injuries at the workplace. It also covers the loss of wages which occurred due to the injury or disablement of the employee. Also, in case of the death of the employee, their family gets financial benefits as per the workmen compensation insurance policy.

10. Is it Mandatory to approach a Lawyer to File a Claim under This Policy?

It is not mandatory to approach a lawyer to file a claim under the workmen’s compensation policy. An employee can do it themselves. However, taking expert help may smoothen out the claim procedure and help with receiving the compensation conveniently.

Having a workmen’s compensation policy is necessary for employers to provide appropriate compensation to their employees in case of workplace injuries or death. If you are looking for a WC policy online, check out the key features offered by Tata AIG Workmen's Compensation Policy.

Remember, the most important thing about running a factory or other related business is to ensure a healthy and safe working environment for employees. However, in the unfortunate incident of an injury or death, they must provide appropriate workers’s compensation coverage to support them and their families financially.

Along with workmen compensation cover, Tata AIG offers several affordable and customisable business insurance in India.