Workmen Compensation Claim Settlement Process

Workmen's compensation for injury is the compensation or monetary benefit that an employee receives if he suffers any injury due to an accident at the workplace. Employers are mandatorily required to offer workers work injury insurance as per government regulations.

Workplace injuries can cause physical and financial loss to workers. Therefore, to protect the rights of the employees, the Workmen's Compensation Act or Employee Compensation Act 1923 was introduced.

According to the Act, a worker must receive compensation from the employer if the following events take place:

• When a worker suffers from an injury in the workplace that causes partial or total disability.

• If the worker suffers from an occupational disease as a result of an accident at the workplace.

• If the employee dies due to an occupational hazard.

Workers or their dependents are eligible to receive different types of compensation under the provisions of the Workmen Compensation Act. Some of the types of injury at work worker's compensation are as follows:

Disability Compensation: If an employee suffers permanent or temporary disability, whether complete or partial, as a result of an accident at the workplace, he shall receive injured at work workers comp as per the Workmen Compensation Act.

Death Compensation: When an employee dies due to a workplace accident or injury, their family is entitled to receive work injury compensation insurance.

Medical Expenses: Under the workmen's compensation insurance policy, the employer must provide for the employee's medical expenses, including rehabilitation, treatment, hospitalisation, etc.

Having a workmen's compensation policy provides financial assistance to the employer in fulfilling the obligation towards the injured employee.

• It protects the most valuable asset of the company, i.e., the workers.

• The compensation given by an insurance company to an injured worker provides monetary assistance to the employees for their medical treatment or meeting the daily expenses.

• An adequate workmen's compensation insurance policy makes the employers and employees feel protected and enhances the business productivity.

• Protects the business from unnecessary financial losses arising from the medical cost of the injured, lawsuit, etc.

• Allows the employer to meet the statutory requirement and adhere to the Workmen Compensation Act, 1923.

Compensation Amount Under Workmen Compensation Act

• Section 4 of the Workmen Compensation Act specifies the compensation for injured workers.

Here is the compensation amount for different injuries caused to workers.

(Note: For the purpose of the compensation calculation, the wages are considered to be ₹15,000)

Compensating workers for workplace injuries is mandatory for all organisations that fall under the scope of the Workmen Compensation Act. It protects the employees by compensating them adequately in case of workplace accidents. It takes care of the medical treatment and other expenses of the employee.

Employers can resort to insurance plans to ensure that their employees receive the maximum benefits.

Organisations must consider SME insurance plans to fulfil their financial obligations towards their employees.

Employers looking for a cost-effective and beneficial worker’s compensation policy can rely on Tata AIG. It is a reputed insurance provider, offering a wide variety of plans to suit all budget requirements.

Who is eligible to receive the worker's compensation if the worker has died?

If the worker has died, their dependents are eligible to receive the worker’s compensation from the employer.

What is included in the Workmen Compensation Policy?

The following is included in the policy:

• Permanent total disability

• Permanent partial disability

• Death

• Temporary disablement

• Legal expenses incurred

• Medical expenses for treatment