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Workmen's Compensation Insurance, serves as a financial safeguard for employees encountering work-related injuries. According to the Employees’ State Insurance Act of 1948, all employers in India, particularly those managing manufacturing units with over 20 employees, are legally required to hold such an assurance policy.
In case of a work accident resulting in injury or death, Employee Protection Assurance provides financial aid to both the employee and their family. It caters to employees who sustain injuries or become disabled due to mishaps at work locations such as construction zones, factories, plantations, mines, and more.
This policy considers factors like the employee's age, role, and average monthly wage for compensation calculation.
Fixed minimum and maximum compensation rates apply for death and disability cases, subject to periodic reviews.
In the unfortunate event of an employee's death, their dependents become eligible for compensation from the employer.
The enforcement of the Employee Protection Assurance policy falls under the purview of the 'Social Security Division' of the Ministry of Labour & Employment.
Each state government appoints Compensation Commissioners dedicated to the effective implementation of this insurance policy.
Companies with a workforce of more than 20 employees are mandated by law to possess this form of assurance. As per the Employees' State Insurance Act of 1948, employers are obligated to extend insurance benefits to their employees. Claims under this assurance can be categorized into four types, namely accidental death, permanent total disability, permanent partial disability, and temporary total disability.
This policy is primarily designed to offer financial security to workers and their families in case of adverse workplace incidents.
This is an article by YouStory written by Palak Agarwal and published on October, 2022
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