What is Workmen Compensation? All That You Need To Know

The Workmen Compensation Act, 1923 is an employee compensation act that mandates specific classes of employers to pay compensation to the employees/workmen for an injury/accident. The workmen's compensation policy helps the employer to pay the compensation within the Workmen Compensation Act of India. It is monitored by the Ministry of Labour and Employment.

The Workmen Compensation Act helps workmen and their dependents to obtain compensation from their employers in case of an accident/injury caused at work or because of the nature of the work that may result in disability or death. The Workmen Compensation Act mandates that employers pay compensation to the workmen if they end up contracting specific occupational diseases during that employment.

The Workmen Compensation Act covers the people working in construction works, mines, factories, plantations, mechanically propelled vehicles, and other hazardous activities. This also includes railway employees and people employed in any capacity as such.

The compensation that needs to be paid to the employer depends on various factors such as the age of the workmen, injury nature, and monthly salary/wages paid to the employee. It is to be noted that the minimum and maximum compensation rate is fixed for demise and disability which is subject to timely revisions. In case the workmen pass away, the employer is needed to pay the compensation to the immediate dependents.

The workmen's compensation policy helps the employer to pay compensation to its employees or their families. The workmen's compensation policy is helpful in case of death, bodily injuries, or disability whether permanent or partially caused due to an accident or injury at the workplace during the employment course. 

The workmen's compensation insurance policy is the commercial policy that covers any legal liability of an employee. This labour insurance policy provides compensation to its workmen in case of their demise or an accident during the employment course.

The workmen compensation insurance policy is sometimes also referred to as employee compensation insurance. The workmen compensation policy coverage helps the employer to demonstrate the ability to meet the imposed obligations under Workmen Compensation Act. 

You might be wondering why you would need a workmen's compensation policy. Here is a rundown of the key reasons why the employers should buy a workmen compensation insurance policy:

1. The workmen compensation policy helps to pay the compensation that the employer is liable to pay the employees and their dependents. This is done because of the death or any injury caused by an accident or disease due to work during the employment tenure.
2. The workmen compensation insurance policy fulfills the insured employer's liability arising either under the law that is common or as mentioned in the Workmen Compensation Act, 1923.
3. This labour insurance policy covers the expenses that are incurred by the insured employer with the consent of the insurer to defend any extra claims.

Bajaj Allianz Workmen’s Compensation Insurance is comprehensive and flexible, which easily fulfills the prerequisites. At Bajaj Allianz General Insurance, we respect your time and money. Our offerings reflect our commitment to you. An unfortunate event can easily surprise and could be daunting. Not all surprises are good.

Hence, it becomes imperative to safeguard the funds, be responsible and choose a workmen compensation insurance policy, and avail of the benefits during crisis hours. We also have a strong efficiency in handling and settling the claims. 

The workmen's compensation insurance policy offers a cover for the following:

• Any bodily injury incurred due to an accident during the employment course
• Any bodily injury incurred due to a disease or the aggravated conditions of the employment
• Partial or total/permanent disability
• Temporary disability or death
• Legal expenses incurred with the consent of the company

Here is a rundown of the general exclusions under the workmen compensation policy:

• For injury caused to an employee by accident directly or indirectly caused by or arising from or in consequence of or attributable to war, invasion, the act of a foreign enemy, hostilities (whether war be declared or not) civil war, mutiny, insurrection, rebellion, revolution or military or usurped power, nuclear weapons material, ionizing radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste from the combustion of nuclear fuel
• Accident occurring at any other place than the place or places of employment specified in the schedule, unless the employee was at such other place whilst on duty for the business and on the directions of the insured or any of its official authorized to exercise control and supervision over the employee
• For occupational diseases contracted by an employee
• For interest and/or penalty imposed on the insured under any law or otherwise.
• Under any law for medical expenses in connection with the treatment of any injury sustained by an employee
• For persons employed in the business under a contractor or sub-contractor of the insured unless specifically covered in the schedule
• For injury sustained by a person whilst in the employ of the insured otherwise than in the business and/or who has is not declared for insurance under this policy
• Assumed by agreement which would not have been attached in the absence of such agreement
• For any sum which the insured would have been entitled to recover from any party but for an agreement between the insured and such party
• Any injury or accident incurred due to the influence of drug or alcohol
• For any incapacity or death of an employee resulting from his/her deliberate self-injury or the deliberate aggravation of an accidental injury

The steps to filing a claim for workmen compensation insurance are completely hassle-free and easy. Listed below are the quick steps to file a claim for workmen compensation insurance:

1. First and foremost, inform the employer about the demise or disablement of the employee
2. In case a mishap has happened in the manufacturing plant, intimate to the factory inspector without further delay
3. The employer should gather all information and all important documents as per the requirements of the insurer under workmen’s compensation policy
4. The employer should deposit all the labour insurance policy documents to the insurance company
5. The insurance company either approves or denies the claim for workmen’s compensation insurance. The same is informed to the employee

You can buy a workmen compensation policy online. To ensure easy and quick approval of the workmen compensation insurance policy, the following are the documents that need to be submitted in the table below: