What You Should Know About The Workmen’s Compensation Cover In Bharat Sookshma Udyam Suraksha Commercial Package Policy

The Workmen’s Compensation Act is designed to provide financial support to workmen in case they suffer an injury due to an accident. It aims to ensure that certain classes of employers provide payment to their workmen as compensation for injury by accident. To help employers deal with such a liability in case it arises, MSME insurance products have a cover for such Workmen’s Compensation. MSME stands for Micro, Small and Medium Enterprises and these organisations must also seek insurance for unforeseen business events. One such insurance plan for MSMEs is the Bharat Sookshma Udyam Suraksha (SUS) Commercial Package plan. This article dives more into the same.* Claims are subject to terms and conditions set forth under commercial insurance policy.

Workmen’s Compensation Cover in Bharat SUS Commercial Package Plan

The following points provide a simple understanding of the cover:

1. If any employee of the insured enterprise gets injured by accident or falls ill on the job during the insurance period, the enterprise can be responsible for providing compensation as required by law or common law.*
2. The Bharat Sookshma Udyam Suraksha Commercial Package policy covers the insured enterprise against the costs of such compensation. The insurance company will indemnify the insured enterprise as per the expenses incurred by the latter.*
3. The insurer shall also cover the costs and expenses incurred by the insured enterprise with its (the insurance company’s) approval in defending against any claims for compensation.*
4. If there are changes in laws during the policy period, the coverage remains, but the insurance company's liability shall be limited to what it would have been under the previous laws.*
5. The compensation provided by the insurer will be subject to terms, conditions, and exceptions stated in the general insurance policy document.

Claims are subject to terms and conditions set forth under commercial insurance policy.

Special Conditions Applicable to the Cover

Under the Bharat SUS Commercial Package general insurance plan, the following conditions must be met by the insured enterprise: 1. The insured enterprise must ensure that accidents and diseases are prevented on the premises and that all legal obligations related to the same are followed. 2. In case an incident occurs that can potentially lead to a claim, the insured must immediately inform the insurer along with the details. Legal documents related to the same must also be shared upon receipt. 3. In case the insured knows of any potential legal action, inquests, or fatal inquiries related to the incident, they must inform the insurer promptly. 4. The insured must take the insurance company’s consent before admitting fault or making offers, promises or payments. The insurer can take control of the defence or settlement of any claim in the insured enterprise’s name. It can also make decisions about legal proceedings and settlements, and the insured must inform and assist the insurer in the same. 5. The premium for the cover is calculated on the basis of wages, salaries, and other earnings paid to employees during an insurance period. The enterprise is expected to keep accurate records of these and allow the insurer to inspect the records. Within a month after the insurance period expires, the enterprise must provide the insurer with a correct account of the salaries, wages, and other earnings. In case of a difference between the above payments and the premium paid by the enterprise, the insured must make additional payments or receive refunds accordingly. One must keep the above conditions in mind before raising a claim for the Workmen’s Compensation Cover under the Bharat Sookshma Udyam Suraksha plan.

Special Exclusions Under Workmen’s Compensation Cover

Along with the conditions, one must also keep the following exclusions in mind: 1. The insurer does not cover losses related to injuries from accidents or diseases linked to war, invasions, acts of foreign hostility, civil war, mutiny, insurrection, rebellion, revolution, or military or usurped power. 2. Any liabilities arising out of injuries to employees of the insurer’s contractors shall not be covered. 3. A liability that arises from an agreement, but which wouldn’t have occurred in the absence of such an agreement, shall not be covered. 4. The insurer will not cover any amount that the insured enterprise could have recovered from another party if not for such an agreement between the insured and that party. These were some of the special conditions and exclusions for the Workmen’s Compensation Act cover in this plan. However, one must note that the coverage is also subject to general conditions and exclusions laid out in the plan unless otherwise stated.

Conclusion

In summary, the Bharat Sookshma Udyam Suraksha Commercial Package plan provides thorough coverage for employers liable under the Workmen’s Compensation Act. The MSME insurance plan also offers standard fire and special perils cover, burglary and robbery cover, plate glass cover, money insurance cover, machinery breakdown cover, and more. Thus, it makes sure that the insured enterprise has the needed financial support during unexpected and unfortunate situations.* Claims are subject to terms and conditions set forth under commercial insurance policy.   *Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.