What is Workmen Compensation Policy?
A Workmen's compensation insurance policy safeguards the employers against the compensation amount they have to pay as specified in workmen compensation act, 1923 to their employees if they get injured or die during duty hours. It also covers the cost of medical treatment as an additional cover, arising due to an as injury, illness, or death during his/her employment.
As an employer, you can purchase a Workmen Compensation policy to cover all your part-time and full-time employees.
Why is it essential for businesses to have Workmen Compensation Policy?
The Workmen compensation insurance policy is a need for business houses in various countries across the globe. Below are the reasons which make this policy necessary for businesses in India:
Payment of Compensation is mandatory
As per Workmen compensation act, it is mandatory for all the employers (not covered under Employee State Insurance Act, 1948) to pay specified compensation on account of death or disability of the employee due to an injury during the place of employment. Since there is always an uncertainty involved to it, availing a Workmen Compensation policy will provide financial independence to the employer to compensate for such unforeseen events.
Comprehensive protection for employees
A workmen's compensation policy ensures comprehensive financial protection for a business's most prized assets, i.e., its employees. In certain situations where the job profiles involve a greater risk of injury or illness to the employees, this policy works like s shield. It secures them against the expenses they may incur for their treatment or meeting daily expenses.
Covers the employer's liability
As an employer, it's your responsibility to ensure the well-being of your employees. In case any of them gets injured or dies due to a work-related hazard, it becomes your liability to pay them a compensation amount so that they can meet their daily expenses. A Workmen Compensation policy covers these liabilities and pays to your employees on your behalf
Improves the business' productivity
By ensuring adequate financial protection to the employees and their dependents, a workmen's compensation policy provides peace of mind to them as well as the employers. This, in turn, allows them to focus entirely on their work, resulting in improved productivity for the businesses.
The Final Word
Though the law mandates compensation to be paid by employers under workmen compensation act, 1923, it's prudent for every business enterprise to purchase this policy. After all, it's better to be safe than sorry.
If you are confused about buying a Workmen Compensation policy due to the wide range of options available in the market, you can contact a reliable agent or conduct an online comparison to find the policy that's best suited to your business requirements.
As one of the leading insurance companies in India, we also offer Workmen Compensation Policy for our customers. ICICI Lombard Workmen Compensation Policy is flexible enough to fulfil various requirements of our customers.
- Workmen’s Compensation Insurance Policy
- Product Code: 4010
- Product UIN: IRDAN115P0010V01200607