Workmen's Compensation insurance is a special type of insurance that safeguards the employers against the compensation amount which they have to pay to their employees in case of injury or death due to workplace hazard during the duty hours.
Compensation to be given under this policy is as per Employee’s compensation Act, 1923.
As an employer, you can purchase a Workmen’s Compensation policy to cover the risk of your employees against workplace hazard.
Paying adequate compensation to employees in case of workplace hazard is mandatory for business houses in many countries, including India. Workmen’s Compensation benefits the business owners in the following ways:
What does a workmen’s Compensation policy cover?
A Employee’s Compensation policy usually covers the following:
- Bodily injuries caused to an employee due to an accident due to the employment.
- Medical treatment of a disease which got developed or aggravated due to the conditions of the employment.
- Death of the employee caused to a work-related hazard.
- Partial or permanent total disability caused to a work-related hazard.
What is not covered by a Workmen Compensation policy?
Below are the common exclusions for the Workmen’s Compensation policy:
- Any injury caused due to war, invasion, or other related perils
- Injury which does not result in the total or partial disablement of the employee for a period exceeding three days.
- Accidents arising due to the influence of drugs or alcohol
- Accidents caused if an employee disregards safety protocols
How to buy Workmen’s Compensation policy?
A workmen’s Compensation policy is easy to purchase. There are many insurance companies which offer online Employee Compensation policies. You can take help of an insurance aggregator or directly visit the website of these companies to purchase a Employee Compensation insurance policy.
You will be required to enter the basic details about your business, including the nature of business, number of employees, wages of employees, risks involved etc. You may also have to submit the relevant documents to purchase the policy.
To Conclude
A Employee’s Compensation insurance policy is essential for a business to safeguard its working capital against high compensation amount it has to pay in case of a severe injury or death of its employee during the duty hours. In fact, it is mandatory under the Employee’s Compensation Act of 1923 and Indian Fatal Accidents Act of 1855.
As one of the leading insurance companies in India, we offer Employee’s Compensation Policy for our customers.ICICI Lombard Employee’s Compensation Policy is designed to provide the insurance policy as per Employee’s Compensation Act, 1923