Any organisation or business can only achieve success if its employees are willing to contribute their skills and services towards its growth.
That is why employers must maintain high employee morale, and one of the best ways to ensure this is by providing them with a security net through a labour insurance policy.
A labour or workmen’s insurance policy is a safety net that provides financial security to employees in the event of any workplace injury. However, that is not its only benefit; there are additional ways in which the policy supports employees during their challenging times.
What Is A Workmen Compensation Policy?
A Workmen Compensation Policy is an indemnity policy of the workers (or their dependents) against work accident-induced accidental disabilities, injury, or death.
It also frees the employers from gorgon-like compensation orders. Which otherwise would have to be paid out of their pockets.
Does India Have A Workmen Compensation Policy?
Yes, India has a mandatory provision for a workmen compensation policy. Employers must provide labour insurance policy protection to their employees to provide financial compensation in the event of injury, disablement, or death while performing their duties.
Buying a workmen compensation policy online is especially beneficial for employers who have employees working in mines, construction sites, plantations, factories, and other high-risk environments, as they have a higher chance of getting injured or ill due to occupational diseases.
5 Benefits Of Workmen Compensation Policy
Here are some benefits of purchasing a workmen compensation policy online for both employers and employees.
1. Compliance With Regulations
The labour insurance policy is mandatory throughout India, although every state has its own regulations for it. Providing workmen compensation to employees safeguards employers from the penalties of non-compliance.
Moreover, in the event of any employee injury or accident, it also protects them from potential lawsuits against the employer; thus saving their assets.
2. Financial Support
Another significant benefit of a labour insurance policy is that it provides financial assistance to employees and their dependents in difficult times. In case an employee suffers a workplace injury while performing their duties, they will be provided with compensation.
The compensation helps cover their medical costs and the loss of wages for the number of days they remain unemployed due to the injury.
This compensation helps employees and their families maintain a financially stable lifestyle and live with dignity.
3. Medical Assistance
Buying a workmen compensation policy online for employees also benefits them by providing injured employees with the necessary medical assistance. It includes financial support for medical treatment and occupational therapy.
Moreover, with an insurer like TATA AIG, there is an option to extend medical coverage using a medical extension add-on.
4. Disablement And Occupational Illness Coverage
The labour insurance policy also provides coverage for medical treatment in case of disablement or occupational illness of the employee. It includes:
- Permanent or Temporary Disablement: There are incidents where workplace injury results in temporary or permanent disablement of the employee. In such a case, the labour insurance policy provides coverage for employees’ lost wages and medical treatment.
- Occupational Illness: The policy also provides financial support to employees who develop occupational illnesses due to prolonged exposure to hazardous conditions.
- Death Benefits: The labour insurance policy also provides coverage for workplace injury or illness that results in the employee’s demise. The compensation in such cases is given to the employee’s nominee for the lost income. In some cases, insurers also cover the funeral expenses.
- Rehabilitation Support: Another great benefit of purchasing workmen compensation policy online for employees is that it provides rehabilitation support.
It includes vocational classes and rehabilitation classes that teach skills to help employees return to work smoothly after recovering from an injury or disability.
It is beneficial for employees who have been out of the workforce for an extended period and wish to re-enter it.
Inclusions And Exclusions Of Workmen Compensation Policy
If you are a worker or an employer of a firm in which manual work is part of your job description. Then it is most probable that you would have heard the term workmen Compensation Policy (or Labour Insurance Policy).
It is a policy that should ensure workers and employers in case of an accident at work or an accident or work injury.
But very few of them even have a clue about what it does—and more importantly, what it doesn’t. Knowing both the inclusions and exclusions prevents nasty surprises when you are forced to make a claim.
Inclusions Of Labour Insurance Policy
These are the compensations and insurances that the worker can claim under the signed policy.
- Bodily Injuries: The employee gets coverage for bodily injuries that occurred due to a workplace accident.
- Medical Treatment: The workmen’s policy also provides financial assistance for medical treatment of injuries sustained during work.
- Permanent Disabilities: The policy provides compensation for partial and permanent disability to employees.
- Temporary Disabilities: The employee also receives coverage for temporary disabilities that affect their ability to work for a specified period.
- Death: In the unfortunate event of employee death, the policy compensates their dependents.
Exclusions Of Labour Insurance Policy
Even though the cover is very extensive, there are some exclusions where the claims will not be accepted. They are for preventive reasons so that misuse of the cover is not made.
- War or Natural Disasters: The workers’ compensation policy does not provide coverage for injuries or losses caused by external factors, such as war, military invasion, or natural disasters.
- Employee Negligence: Occupational injuries or illnesses caused by employee negligence, such as failing to follow safety protocols, will not be covered under insurance.
- Self-inflicted Injuries: Self-inflicted injuries will not be covered under the labour insurance policy.
- Working Under Influence: Work-related accidents that occur due to the employee being under the influence of alcohol or drugs will not be covered.
Summing Up
Workplace accidents and occupational illnesses do occur, especially in industries such as mining, manufacturing, and construction.
However, by purchasing a workmen compensation policy online, employers can ensure that even if such incidents occur. Their employees receive fair compensation.
This way, not only can employees get the right treatment on time. but also support themselves and their families in difficult times.
