WORKMEN'S COMPENSATION INSURANCE POLICY (WC Policy)

Employers are responsible for the safety of their employees. It is the duty of the employers to provide a safe and hygienic working environment for their employees so that they can discharge their duties without any adverse impact on their health.

Many Employees work in dangerous circumstances in the course of their job. Many times, things go wrong with the employee and an accident occurs resulting in Employees losing their lives or becoming permanently disabled. This results in the families of such workers facing financial distress. The government passed the Workmen’s Compensation Act, 1923 which makes it the liability of an employer to provide compensation to the family of employees if the employee has suffered from an injury or death in the workplace.

The Workmen Compensation Act 1923 makes it the liability of an employer and mandates the employer to provide compensation to the employee if the employee suffers from an employment-related injury or death. Additionally, the Workmen Compensation Act 1923 also makes it the liability of an employer to provide compensation to the employee if the employee contracts occupational diseases during his/her employment.

Employer’s Legal Liability for accidents in the course of employment might arise out of any of the following reasons:

1. Negligence of the employer to use reasonable care in providing a safe working environment to the employees
2. Breach of Statutory Regulations with regards to safety of employees such as Factory Acts
3. Negligence of employees themselves while performing their duties

If an employee suffers a workplace related accident or injury (even death) for any of the above reasons, the employer can be held liable.

A Worker’s Compensation Insurance Policy provides the following coverages:

1. Death
2. Accidental Injury resulting in Permanent Total Disability
3. Accidental Injury resulting in Permanent Partial Disability
4. Temporary Disability
5. Occupational Diseases contracted by the workman which is peculiar to that employment

A Workmen's Compensation Insurance Policy offers the following add-on covers:

Medical Extension: If the Insurance Policy has a Medical Extension Add-On Cover and an Accident occurs, then the Medical Extension offered under the Workmen Compensation Insurance Policy pays for treatment expenses of any injury sustained by an employee at the work premises.

Occupational Diseases: Prolonged exposure to occupational hazards also results in Diseases and Illnesses specific to various industries. Diseases that can be covered under the Occupational Disease Add-On Cover of a Workmen Compensation Insuance Policy include Pneumoconiosis caused by sclerogenic mineral dust and silico-tuberculosis. Bagassosis, Bronchopulmonary diseases caused by cotton, flax hemp and sisal dust (Byssinosis), and Acute Pulmonary Oedema of High Altitude.

Sub-Contractors Cover: There are situations where a Contractor hires a Sub-Contractor to do a certain portion of the project work. In such cases, the Contractor can opt for the Sub-Contractors Add-On Cover. The Sub-Contractors Add-On Cover would provide coverage to the employees of the Sub-Contractors as well under the Workmen’s Compensation Insurance Policy.

The Compensation Amount payable under a WC Insurance Policy is as follows: