Benefits of Workman Compensation for an Organisation?

Workmen’s insurance policy is a type of commercial policy that covers an employee's legal liability. The policy provides compensation to employees in case of their demise or accident during their employment.

Under the Workmen Compensation Act 1923, the injured employee or the family member of the deceased employee can ask for the workman compensation under labour law. This insurance helps employers demonstrate their ability to fulfil their obligations stated under the Workmen Compensation Act.

Compliance with Regulations: Workmen's compensation policies are available in every state and are mandatory for every employer to follow. That means it is one of the employer’s legal responsibilities to buy worker compensation policies.

Employee Protection: Workers' compensation and benefits include expenses for injuries and healthcare in case an employee suffers from an accident. Providing this financial support to the employee protects their interests and inculcates a sense of trust towards their employer.

Legal Protection: By investing in workers' compensation insurance, employers can protect themselves from future legal lawsuits that employees might file in case of accidental injuries during work.

Helps in Cost Control: Workers compensation for employers can be added to the organisation’s expenses. Financial obligation on the employer in terms of employee injury or death can be heavy. However, investing in it can save them from future financial liabilities in case of employee demise or workplace accidental injury. Moreover, it is suggested that organisations should invest in workplace security to avoid any hazardous accidents.

Workplace Return Program: Workmen compensation policy often covers the cost for the program for injured employees' safe and swift return to the workplace. This program not only facilitates the employees' return but also helps employers fulfil their responsibilities.

Company Reputation: Investing in worker’s compensation policy benefits the organisation in gaining brand value and building a reputation in the market. Organisations that focus not only on their profits but also on their employees' protection are appreciated.

Employ Great Talent: As mentioned earlier, investing in workers' compensation policy helps organisations build a good reputation. This reputation helps them attract great employees and talents who can contribute to the company's success.

Facilitate Workplace Security: Investing in compensation policy and improving workplace security helps in avoiding hazardous accidents. It is in long-term helps organisations to avoid any incidents related to work accidents.

Financial Stability: Another benefit of workers' compensation policies for organisations is that they help them provide financial stability. Workers' compensation is important for organisations because it covers employee expenses in case of an unfortunate event.

Workmen's compensation importance is many and hence, is crucial for all organisations, big or small. It provides them with several benefits, from financial to legal, from building a reputation to attracting talent.

With Tata AIG you can get workmen compensation policy online and keep the organisation and its employees safe and secure from any unforeseeable accidents or events. Moreover, make sure to know about other necessary SME insurance that might benefit you.

What is the main objective of the Workmen Compensation Act?

The main objective of the Workmen Compensation Act is to provide financial assistance to employees who meet any accident or untimely demise while performing their duties.

How is the WC policy premium calculated?

The basic formula to calculate the WC policy premium amount is by multiplying the company's payroll by a rate assigned to each job category.