In which cases the worker is eligible for monetary compensation?

Worker’s compensation is a government-backed scheme that ensures that employees receive monetary compensation if they get injured or fall ill during the course of employment.

The objective of the Worker's Compensation Act is for employees to receive financial and healthcare security in case they get injured or ill while working.

Under this law, all employees working part-time, full-time, or temporarily are eligible to receive monetary compensation. However, the type of coverage and its terms and conditions may vary from one organisation to another.

Employees need to meet the worker's compensation eligibility requirements to get the monetary benefits. Some of the standard eligibility requirements are:

• If an employee suffers a bodily injury during their tenure at the worksite or due to work, they are eligible for worker’s compensation.

• If an employee contracts a disease or falls ill due to their occupation, they are eligible for worker's compensation.

Lastly, if the employee gets disabled or sustains a fatal injury at work, then they are eligible for workers’ compensation.

The worker's compensation benefits and requirements vary from state to state. Some of the expected benefits covered under the workers compensation insurance are:

Salary Replacement

One of the essential benefits offered by worker's compensation management is salary replacement. Under this, if an employee falls sick or injured while doing the job and is unable to return to work, the employer has to pay compensation to the employee.

However, this compensation paid to the employee is typically less than the individual's full salary.

Medical Care Cost Reimbursement

Another benefit of investing in workmen compensation policy online is medical care cost reimbursement. Under this, employees get financial cover for medical emergencies for the injuries incurred as a direct result of employment.

Besides this, the employee also receives sick pay from the employer while they are on medical leave.

Death Benefit

In the event of an employee's death due to work-related reasons, the employer has to pay the employee's family monetary compensation under workers' compensation insurance.

The cost of workers' compensation insurance depends on the type of coverage and benefits needed by the organisation. However, the benefits and coverage of workers' compensation insurance may vary from organisation to organisation and so does the premium (cost).

Businesses face multiple challenges during their operation. Hence, it is important to get essential coverage against various risks such as property damage, liability claims, and business interruptions. That's why employers invest in various SME insurance policies.

One such SME insurance policy is worker's compensation insurance, which offers financial security to employers against various unforeseen situations that occur at the worksite and cause injury to employees.

The insurance plan will help employees get financial aid which helps their family in dealing with the situation.

Tata AIG is a well-known insurance provider that offers workmen compensation policy online to ensure the employers' assets, employees, and operations are safeguarded.

Workmen's compensation insurance is crucial for businesses and organisations as it offers financial security to their employees against worksite accidents. The insurance policy saves the employer's financial implications.

However, the coverage of workmen's insurance policies may vary from one organisation to another. At the time of purchasing the workmen's compensation insurance, the employer may consider the sum insured, extra benefits, optional covers, and claim settlement process to ensure the employee benefits from optimal coverage and the business does not face interruptions due to unforeseen challenges.

Do business owners need workers' compensation?

If a business has a certain number of employees, then investing in workers' compensation insurance is crucial.

Who is eligible for the workmen's compensation policy?

All full-time, part-time, temporary, and casual working employees are eligible for the workmen compensation policy online.

Is Workers' Compensation insurance mandatory in India?

Workmen's compensation insurance is mandatory as per the Workmen's Compensation Act of 1923 for businesses which have a certain number of employees above the threshold limit and/or involved in specific businesses.