Employee’s (Workmen’s Compensation Insurance)

A single policy can protects your workers' family from financial troubles. It covers accidental death, permanent total disability, permanent partial disability, and temporary total disability. Yes. Let us know more about this policy i.e. workmen’s compensation policy.

A Company's Employees Compensation Insurance policy covers the legal liability of employers under the 1923 Employees Compensation Act (and subsequent amendments) and 1855 Fatal Accident Act. It is inevitable that accidents will occur at your workplace, no matter what precautions and preventive measures you take. Employees' Compensation policies allow employers to compensate employees (or their families) if they die or suffer bodily injury (permanent partial disablement / permanent total disablement / temporary disablement) because of injuries and accidents at work (including certain occupational diseases) resulting from and during employment. It covers medical expenditures, occupational diseases, and compressed air diseases.

Who Should Buy Workmen’s Compensation Policy?

The Employee Compensation Policy was originally known as the Workmen's Compensation Policy. This policy covers all employees as well as office staff in manufacturing, trading, and service setups. This policy is beneficial to most contractors/subcontractors. Individuals, public and private companies, partnerships, or any business or trading entity operating in the country can take it up.

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What are the Benefits of Workmen’s Compensation Insurance?

It covers the payment of legal compensation to employees or their dependants if an employee is injured or injured at work (including occupational diseases) resulting in disablement or death because of the injury or accident.

Why You Should Buy Workmen Compensation Insurance at BimaKavach?

We offer Workmen’s Compensation policy i.e. comprehensive and flexible enough to meet your needs. Getting Workmen's/Employee's Compensation Insurance directly from us is more convenient because we understand the importance of swift response and efficient service in handling claims.

What is Included in Workmen’s Compensation Insurance?

Among the basic covers are accidental death, permanent total disablement, and temporary total disability coverage. Add-on covers include compressed air disease, occupational disease, and subcontractor coverage.

Benefits of Employee’s (Workmen’s) Compensation Policy at BimaKavach

· In a few clicks, you can begin the buying process

· Hassle-free and convenient quick response

· Efficient service in handling claims

What Basic Information the Insurer needs to provide quotation?

Work/occupancy nature
Total number of employees
Monthly compensation
Tenure of the policy
Risk Location Address
At least 3 years claim experience with amount and count of claims.

What are the Addon Coverages Provided by a Workmen’s Compensation policy?

Occupational Disease
Compressed Air Disease
Contractor/Subcontractor Coverage
Location Coverage PAN India
Medical Expenses (Per Employee Limit)
Cashless for Medical Expenses

How does Permanent Total Disability work?

It means that such disablement of a permanent nature incapacitates the injured employee from performing all the work that he could perform prior to the accident that resulted in the disablement. An employee’s compensation act specifies the types of disablements that qualify as permanent total disablements.

How does Permanent Partial Disability work?

In the event the disablement is permanent, it refers to the disability that reduces an employee’s earning capacity in every employment he was capable of undertaking at the time of the accident that led to the disablement. Employee’s compensation Act specifies a list of disablements.

How does Temporary Disablement work?

Term “temporary disablement” refers to a condition resulting from an employment injury requiring medical treatment and rendering the employee temporarily incapable of doing his previous or current jobs.

FAQS

1. What is Employee's compensation insurance?

Essential requirement for the employee's compensation insurance to provide compensation to employers on behalf of their employees in case of accidental workplace injuries resulting in death or disablement. This insurance covers accidents that occur within the work premises and during working hours, as well as direct travel between the office and home. However, it is crucial that the employee was engaged in business-related activities and not pursuing personal interests at the time of injury. The existence of an employer-employee relationship is a fundamental aspect for this insurance coverage.

2. Are employee's compensation policies covered for legal liabilities?

It covers fatal accidents as described in the fatal accident act, 1855 common law, as amended through employee compensation (Amendment) Act, 2017.

3. In what ways is Employee's Compensation policy different from ESIC?

· Construction site workers are exempt from ESIC coverage according to the ESI Act, but they can still be covered under a WC policy.

· Employees who earn over 21000 wages are not eligible for ESIC coverage, but there is no wage limit under the WC/EC Act.

· Seasonal factories that operate for less than 7 months are not included in ESIC coverage, but they can be covered by an Employee's compensation policy.

· Organizations with up to 10 workers (20 in Maharashtra and Chandigarh) do not need to register with ESIC, although there is no limitation on the number of workers for WC/EC policies.

These policies also offer lower and more flexible rates compared to fixed ESIC rates.

4. In what ways does occupational disease insurance cover you?

It covers the diseases that are specified under schedule III of the employees' compensation act or diseases that arise from the nature of the occupation (ex. diseases caused by toxic substances).

5. In what ways does compressed air disease cover you?

Employee's compensation covers compressed air disease, which is attributed to working in conditions where air pressure may be higher or lower than the normal surface air pressure. Ex. underground or underwater works.

6. What does Medical Extension add on cover?

Any medical surgical and hospital expenses incurred by the insured in connection with an injury to an employee that requires more than 24 hours of hospitalization are covered under the medical extension.

7. How does PAN India Location Coverage work?

An employer with multiple branches (operating factories) across the country can take a single insurance policy to cover employees at all the branches if the insured has PAN India coverage.

8. What is the formula for calculating sum insured in an Employee Compensation Policy?

A sum insured is calculated by considering the monthly wages of the employees of an organization. Besides reimbursable expenses made by employees, wages include basic salary, allowances, perquisites, and any other benefit provided to employees.

9. How should the claim intimation be filled out?

Insured and injured name, policy number, accident date, claim nature and brief description of accident, etc.

10. How much compensation is payable under the Employee's Compensation policy?

According to employee compensation act, employees are entitled to the following compensation amount as statutory liabilities:

Nature of Claim	Amount of Claim
Accidental Death	(50% * Wages * Age Factor) OR INR 1,20,000 Whichever is higher
Permanent Total Disability	Permanent Total Disability (60% * Wages * Age Factor) OR INR 1,20,000 Whichever is higher
Permanent Partial disability	Based on % disability / Loss of earning capacity prescribed by medical practitioner * Wages * Age Factor
Temporary total disability	Temporary total disability 25% * wages * No of days of absence/disability / 15