Are There Any Value Added Services in Workmen’s Compensation?

Workmen's compensation insurance offers financial assistance to employees or workers who suffer a work-related accident or illness. The coverage will cover medical bills, lost wages and any other disability caused by workplace incidents.

Workmen's compensation insurance is applicable for employees and workers working in hazardous and non-hazardous settings. The policy is governed under the Workmen’s Compensation Act of 1923. Employers purchase it to reduce their financial liabilities in case of work-related accidents.

• Death Benefits: One major coverage under the workers' compensation policy is death benefits to employees or worker families. If an employee or worker is involved in fatal accidents that lead to employee death, then the family of the employee will receive financial compensation. This lump sum amount will help the family of the deceased cope with loss of income.

• Temporary and Permanent Disability Benefits: Another crucial benefit offered under workers' compensation insurance is temporary and permanent disability benefits for workers or employees who are severely injured in worksite accidents. The compensation amount under the disability benefit is calculated based on the severity of injury, employee wages and other factors like employee age.

• Legal Liability Coverage: Workmen's compensation coverage also offers legal liability coverage to employers against lawsuits filed by employees or their families. The coverage offers statutory benefits to minimise the risk of legal actions from workplace fatalities and injuries.

Also Read: What are the Features of the Workmen’s Compensation Policy?

Depending on the insurance provider, workmen's compensation insurance also comes with various value-added services. This VAS in a WC policy offers additional coverage to employees in the event of workplace-related accidents. Here are some of the value-added services offered under workmen's compensation insurance.

Medical Extension: This is the crucial VAS in a WC policy, in which an employer can purchase a medical extension in exchange for an extra premium. With this add-on or service, injured employees or workers will get coverage for severe injuries that require hospitalisation for more than a day.

With the added coverage, injured workers who suffer from serious accidents benefit from more comprehensive medical treatment and longer-term care. This ensures they can receive the care they need without running into financial challenges.

Terrorism Cover: Usually, under workmen's compensation insurance, any injuries or accidents related to terrorist acts are not covered. But with this value-added service in WC policy, accidents or injuries sustained by workers or employees due to terrorist acts are covered.

It is crucial if your company operates in high-risk areas or industries where terrorism is a concern. Purchasing this add-on could be an essential step in safeguarding your workers, protecting your business and ensuring that employees are supported in times of crisis.

Sub-Contractor Cover: Generally, under workmen's compensation insurance, coverage is only offered to hired employees or workers. The sub-contractor is not part of the insurance coverage. However, with this VAS in a WC policy, employers can offer coverage to subcontractors as well.

It is crucial for businesses in industries like construction, manufacturing, logistics, or IT services, where subcontractors are regularly hired to carry out work on behalf of the business. By extending coverage to subcontractors' workers, employers protect themselves from significant financial and legal risks.

Various exclusions are not covered under the workmen's compensation insurance, such as:

• Any injuries related to nuclear radiation or radioactive contamination are not covered under the plan.

• The workmen's compensation insurance does not cover diseases specified in Part C of Schedule III of the Workmen's Compensation Act, 1923, which are generally excluded. However, some insurance providers offer extensions for such diseases.

• The plan does not cover injuries or accidents that occur outside the designated place of employment.

• Any injuries or accidents sustained by employees in the workplace under the influence of drugs and alcohol are not covered under the policy.

• A deliberate or self-inflicted injury by an employee or worker is not covered under the workmen's compensation insurance.

• The policy does not cover nonfatal injuries that do not cause disability for more than 3 days.

• The plan does not cover accidents or injuries caused by the employee's wilful negligence.

Choosing or selecting the right workmen's compensation insurance is crucial for safeguarding employers and employees. However, choosing the right workmen's compensation cover can be daunting, given the many options available. Below are some of the factors that need to be considered while choosing a plan.

Assess your Business Needs: One essential factor in choosing workers' compensation insurance is knowing your business requirements. Understanding the nature of the business, the type of risk associated with it and more will help determine the coverage.

Know Legal Requirements: Another crucial requirement businesses need to consider is knowing the legal requirements based on local and state laws.

Evaluate Policy Features: When choosing workmen's compensation insurance, evaluate the policy features and coverage based on your organisation's needs. Knowing what is covered under the plan is crucial to maximising policy benefits.

Consider Value-Added Service: Another crucial consideration a business needs to make is the scope of VAS in WC policy. Value-added services or add-ons are voluntary options to enhance protection.

The value-added services in WC policies provide enhanced protection to employees in the event of accidents or injuries, going beyond the basic coverage offered by standard policies. These add-ons, such as coverage for subcontractors, terrorism risk extensions, or medical extensions, ensure that workers are fully supported, regardless of the nature of their employment or the circumstances surrounding their injuries.

TATA AIG offers SME Insurance, such as workmen's compensation policies, that are customised based on your unique workforce needs. Our plans come with various add-ons like medical extension, terrorism coverage and more.

Can you buy workmen's compensation online?

Yes, many insurance providers now offer the option to buy workers' compensation insurance online. This can be a quick and convenient way for businesses to secure coverage.

Is wilful negligence by an employee eligible for compensation?

No, willful negligence by an employee is generally not eligible for workers' compensation. Workers' comp is designed to cover injuries sustained during work-related activities. Still, if an employee’s actions are considered intentional or reckless, such as deliberately disregarding safety protocols, the claim may be denied.

Are witnesses essential for worksite-related accident compensation?

Witnesses can be helpful but are not always essential for worksite-related accident compensation. Workers' compensation claims typically focus on the medical evidence, accident reports and the circumstances of the injury.

While witnesses can provide valuable support, the claim can still be valid without them as long as the necessary documentation and proof of the accident are provided.