All states, with a small number of exceptions, require businesses with employees who are not owners, to purchased workers’ compensation coverage for those employees.
The workmen’s compensation insurance policy is the primary method by which an employer can demonstrate the ability to meet the obligations imposed by the worker’s compensation statutes.
It is compensation payable under a scheme set out in the Workmen’s Compensation Act of India, monitored by the Ministry of Labour.
The policy covers statutory liability of an employer for death or bodily injuries caused to employees due to accidents arising out of and during the course of employment.
Why do you need Workmen Compensation Insurance?
- To pay all sums for which the insured is legally liable to pay the employees with respect to personal injury by accident or diseases arising out of and during the course of the employment.
- Insured’s liability arising either under common law or under the laws set out in the schedule Workmen’s Compensation Act 1923.
- Costs or expenses incurred by the insured with the consent of the company to defend any claims are paid in addition.
Principal Exclusions
- One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards.
- One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards.
- While plans differ among jurisdictions, provision can be made for weekly payments in place of wages (functioning in this case as a form of disability Insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health Insurance), and benefits payable to the dependents of workers killed during employment.
Benefits Of Workmen’s Compensation Insurance
- Comprehensive coverage of all statutory requirements of employers
- Additionally, legal costs and expenses incurred with our consent
- Reimbursement of legal expenses incurred with the company’s consent
- Covers death, permanent total and partial disability, and temporary disability of employees when at work
- Optional cover for medical, surgical and hospital expenses, including cost of transportation to hospital, on payment of extra premium
- Policy can also be extended to include medical expenditure for necessary treatment
