Does Workers Compensation Benefit Employees?

As per the Employee’s Compensation Act of 1923 and the Indian Fatal Accidents Act of 1855, companies in India must provide adequate compensation to workers if they suffer injury or death at the workplace. This act is particularly applicable to small-scale manufacturing companies. This act offers employee compensation and benefits for injuries sustained during their duty.

The Social Security division of the Ministry of Labour and Employment in India brought the Workers Compensation Act in 1923.

The Workers Compensation Act serves two primary objectives.

• It offers workmen compensation for employees in case of injury and death benefits to their dependent families.

• The Act also mandates employers to provide compensation to their workers if they suffer injury, illness, or death at the workplace.

The compensation that workers receive depends on various factors, such as

• Employee’s age

• Average monthly wages or salary

• Type of the injury

• The minimum and maximum compensation is set beforehand, in case of death or permanent disability of the employee. Here, the employer is liable to pay compensation (financial assistance) to the dependent family members of the worker in case of their death.

Workmen’s compensation insurance is an important aspect of business insurance in India. It came into place due to the Workers Compensation Act 1923. Workers’ compensation insurance safeguards both employees' wages and benefits by providing financial assistance in the event of work-related injuries or illnesses. This ensures their financial security and peace of mind during recovery.

Workers' compensation is a mandatory insurance requirement in most jurisdictions of India. It serves as a critical safety net for employees who suffer work-related injuries or illnesses. Workman’s comp insurance offers the advantage of offering financial compensation for injuries, illness, or death.

Let's explore the key benefits workers' compensation provides:

• Companies can stay compliant with the Workers Compensation Act by providing workers compensation cover.

• Workmen compensation policy protects organisations from financial liabilities in case an employee suffers severe injuries or death at the workplace. Moreover, it offers coverage for legal expenses if an employee suffers workplace injuries and sues the employer.

• It provides financial compensation to injured employees or death benefits to their dependent family members. It protects employees by providing financial support against medical bills, treatment costs, funeral services costs, etc.

• Organisations can attract and retain talent by offering them attractive compensation benefits. It helps organisations reduce employee turnover and other related costs.

• Providing worker’s compensation benefits to employees motivates them to engage more into the work and add value to the organisation.

• Workmen compensation insurance for small businesses allows organisations to promote equity and fairness by providing financial compensation in case of a mishap at the workplace.

If you are looking for workmen’s compensation policy online, you may check out the plans offered by Tata AIG.

Providing employee compensation and benefits is essential for companies to stay compliant with the labour law and also show their appreciation to the employees for their contribution to the company.

Tata AIG offers Workmen's Compensation Policy that takes care of the financial burden and liability of employers towards their employees in case of the unfortunate event of an injury, illness, or death.

Having robust workers’ compensation insurance for employee pay and benefits, employers can incorporate a positive work culture while attracting and retaining a workforce.

What are the employee benefits in India?

Employee benefits in India can vary, depending on the employer and the industry. The most common employee benefits offered by employers are health insurance, workers compensation insurance, employee pay and benefits, etc.

What are employee benefits in short?

Employee benefits can be financial or non-financial aid or rewards provided to employees who become injured or develop diseases due to their jobs. These benefits include compensation for lost wages, medical bills, compensation for disablement, and death benefits to their dependent family members. Typically, these are non-wage compensations, which may also include health insurance, retirement plans, paid time off, other incentives, etc.

Are all employees covered by the worker's compensation policy?

The Employees' Compensation Act of 1923 mandates that all employees, including casual and temporary workers, are covered under workers' compensation. However, certain categories of workers, such as employees of independent contractors, may not be covered.