How Does Workmen Compensation Act Protect Employees

The Workmen's Compensation Act of 1923 is legislation introduced for the social welfare of employees or workers in an organisation. It mandates employers to get workers' compensation insurance to cover the financial inconsistencies that will be incurred due to work-related injuries.

Also called the employees' compensation policy, it covers bodily injuries and injuries that can lead to disabilities and even death. The financial benefit helps the affected employee and their family members manage the medical expenses and handle the loss of earning capacity.

The Workmen's Compensation Act of 1923 emerged as a culmination of a series of legislative steps taken to protect workers. The Compensation Act of 1884 laid the groundwork, offering financial protection for work-related injuries in specific industries and jobs.

The Fatal Accidents Act of 1885 then extended this protection to the dependents of employees who lost their lives due to work-related injuries.

However, these acts, while significant, fell short of offering comprehensive coverage for numerous types of injuries and their consequences.

The Workmen's Compensation Act of 1923 was introduced to expand the scope of coverage and access to recognise the employees' rights and benefits as they work in environments highly prone to accidents.

Scope of Coverage: Extensive and Inclusive

Financial protection against this legislation can be provided to all employees working in an organisation, whether full-time, part-time, contractual, etc.

The law comes into effect when the employees sustain injuries, disablement, or die at the workplace due to an accident or while carrying out their duties.

The Act also covers the front-line workers in various industries, including construction sites, mines, factories, etc., and in different types of jobs such as drivers, mechanics, and helpers.

Rebuilding Lives: Compensation for Work-Related Injuries

Section 4 of the Workmen's Compensation Act outlines the statutory liabilities of the employers to compensate the workers against injuries sustained during employment. The employer is liable to pay the compensation irrespective of whoever was at fault at the workplace and that which caused the accident.

• It can cover the following aspects:

• Bodily injuries

• Permanent total disablement

• Permanent partial disablement

• Temporary disablement

Death

The number of injuries covered is extensive and segregated with a detailed listing of the specific disabilities in the Act. Claims specific to such bodily injuries will be eligible for compensation to the applicable extent. Also, the compensation to workmen in case of transfer of undertakings becomes applicable.

The amount of compensation will depend on the type of consequence of the injury, its extent of severity, and the loss of earning capacity. In the event of the death of the worker, their dependents or beneficiaries will be entitled to receive compensation to sustain a living in the absence of the family's breadwinner.

Access to Justice: A Social Security Net

In India, a major fraction of the population earns their livelihood by performing routine manual labour. The workmen's compensation policy serves as a financial safety net for such workers who engage in intense work activities prone to accidents and bodily injuries for their well-being. The financial shield also protects their families against unprecedented crises that can arise out of such accidents.

The legislation and the statutory liability provide access to justice, promote prompt compensation, and facilitate quick resolution of financial inconsistencies.

Empowering Workers: Upholding their Rights and Voices

The Workmen's Compensation Act of 1923 empowers employees to feel a sense of financial assurance. Knowing that they are covered under the WC policy insurance instil confidence in their work while encouraging them to assert their rights to ensure financial protection at their workplace.

At Tata AIG, we are committed to offering different types of commercial insurance plans under the SME insurance policy, such as Fire & Burglary Insurance, Public Liability Insurance, etc., to support small and medium-scale enterprises in their growth and boost their operations. It provides security against financial losses, legal compliances, and business credibility.

In addition to introducing such flexible insurance plans to business entities, we are also offering a workmen's compensation policy to help employers protect the financial rights of workers exclusively. You can check out our workmen's compensation policy online for a detailed explanation of the inclusions and exclusions to make wise and well-informed decisions.

The Workmen's Compensation Act 1923 is a cornerstone of employee protection, offering employees access to their rights to financial compensation against work-related injuries. Its extensive and comprehensive coverage ensures workers are not left stranded in the event of an accident.

The legislation covers wide-ranging injuries, related disabilities, and even death, for compensation. It helps the sustenance not just of the employees but also their families.

The legislation is significant because it upholds the principles of social justice and empowerment in the workplace and endures employers' commitment to workers' well-being now and forever.