Workman Compensation Insurance Policy and its Benefits

The Employee's Compensation Act of 1923 makes providing employees with fair compensation in times of emergencies, especially when they are on the job, mandatory.

Under the workers' compensation policy, all workers receive financial assistance in case of accidents during duties that may result in partial or permanent disability and death in the workplace.

However, other than employees, even employers receive workers’ compensation benefits.

The workmen's compensation policy is an integral insurance plan that secures both the employees and the employers from a significant financial liability in the event of an unfortunate work-related injury or accident.

The scope of financial assistance under this plan goes beyond basic insurance coverage as it offers more extensive coverage for a wide variety of situations and unforeseen circumstances.

Let us look at the different WC policy benefits for employees and employers below.

WC Policy Benefits for the Employees

Comprehensive Financial Assistance- The primary benefit of workmen compensation for employees is the opportunity to avail of comprehensive financial assistance.

This insurance policy ensures that employees' out-of-pocket expenses are protected in case of work-related accidents, from medical assistance to necessary financial support for a set period or until they get better – subject to the policy’s terms.

Death Benefits- Another benefit to employees is the financial support extended to their family members as per the workers compensation insurance policy terms.

In case an employee suffers from permanent disability or death due to work accidents, their family members receive financial compensation for the same to help with day-to-day expenses and future plans.

Security of Income- With the workmen's compensation policy coverage, employees who face temporary or partial disability do not have to worry about income loss. The policy provides a portion of the monthly salary to the injured employee to ensure there is no financial gap for them and their family members until recovery.

WC Policy Benefits for the Employers

Legal Relief- One of the primary WC policy benefits for employers is allowing them to meet the statutory requirements as a business.

Additionally, it acts as a significant investment that extends financial assistance for lawsuits and other legal liabilities in case of employee accidents during work hours. This further reduces the risk of bearing hefty fines.

Coverage Flexibility- Within a workers' compensation policy, employers can get a variety of coverage based on specific requirements and categories of employees. They can also opt for a contract or temporary workers' coverage if needed to extend the compensation financial relief for these blue-collar workers.

Better Working Environment- By following the mandatory statutory requirements, employers are not only investing in financial safety in case an employee meets with an accident, but also indirectly adding value to the working environment. This improves the market image and helps attract and retain employees.

To understand how a workmen's compensation policy works and benefits the employees and employers, you must know the basic inclusions and exclusions in the workmen's compensation policy coverage.

Here is all you need to know.

Inclusions of Workmen Compensation Policy

• Any injury incurred by an employee while performing job duties.

• Any employee facing temporary disability while completing their job roles and responsibilities.

• Any employee facing partial or permanent disability while completing their job roles and responsibilities.

• Any legal costs incurred by the employer in case of such incidents, with prior approval from the insurance provider.

Exclusions of Workmen Compensation Policy

• Any injury or employee accident due to uncontrollable external factors like forced invasion, war, revolution, military activities, etc.

• Any injury or damage to an employee outside the listed work locations or the specified working hours before providing an employer with a prior update.

• Any injury or damage incurred by an employee due to negligence at work, like avoiding the necessary safety gear.

• Any injury or damage incurred by an employee due to working after consumption of alcohol or other illegal substances.

• Any self-inflicted injury by an employee is not covered under a WC policy.

Now that you are aware of the various WC benefits, it is also important to choose the most efficient insurance provider for this policy to ensure maximum convenience and value addition.

Tata AIG’s worker's compensation insurance policy is designed to extend maximum coverage to employers and employees in India. It helps ensure proper assistance in times of need with a quick cashless claim procedure and a team of experts available 24/7 to resolve all your queries.

Moreover, for added convenience, we offer a user-friendly website to complete all insurance-related tasks in just a few clicks. Whether you wish to buy or renew workmen’s compensation policy online or track claims, all you need to do is visit the website and get started.

To provide your business with other financial assistance in times of unforeseen circumstances like fire or burglary, you can explore our other SME insurance plans and choose the one that best fits your needs.

Providing employees with the necessary peace of mind and guaranteeing financial assistance in case of work accidents and injuries is a significant aspect of overall employee rights in India.

The investment in workers’ compensation insurance is beneficial for both employees and employers, making it a must-have insurance policy for the well-being of the employees and the future of the employer.

Moreover, as it is mandatory as per the Employee’s Compensation Act 1923, compliance with the same can bring about positive market value and better talent acquisition for the employer, with the guarantee of a safe working environment for the employees.

What are some other WC policy benefits for the employer?

Other than statutory compliance and a positive market image, some additional WC policy benefits include higher employee motivation due to a safer working environment, increased employee involvement and focus during work activities, better scope of employee retention due to a positive work environment, and significant financial assistance in times of legal complaints after work accidents.

What are some types of workmen compensation policies in India?

In India, there are approximately four different types of workmen compensation insurance policies. These include medical treatment, wage replacement, vocational rehabilitation and death services.

What to do if my work injury restricts me from going back to the same job category?

If you are injured to the point that you cannot continue with the same job with the current employer, the WC policy might extend vocational training to you to help increase your skills and expertise in another domain of the current employer for continued employment.