Work Man Compensation Insurance

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A workmen’s insurance policy is a win-win for both companies and their employees. Let’s take a look at the 3 main reasons why every employer should consider buying a workmen’s compensation insurance policy.

Reason 1: Once an employer is insured under such a policy, any costs or expenses incurred are covered by the insurance partner.

Reason 2: The compensation paid out to employees or their dependents in the event of a workplace mishap, injury, illness, or fatality can be substantial. It’s a legal liability for an employer, which is covered by the insurance company that sells the workmen’s compensation insurance policy.

Reason 3: The legal liabilities are governed by the Workmen’s Compensation Act, 1923. In order to abide by the rules and regulations mentioned in the aforementioned and to fulfill the legal liabilities, investing in a workmen’s compensation policy becomes quintessential.

Amount of Compensation Payable under the Act

The amount of compensation an employer has to provide frontline workers is as follows:

Death of the worker: 50% of the worker’s monthly wages multiplied with relevant factors; or ₹1,20,000, whichever is more.

Permanent Total Disability: 60% of the monthly wages, multiplied by relevant factor; or ₹1,40,000, whichever is more.

Permanent Partial Disability: In such cases, the amount payable is a percentage of the loss of earning capacity due to the injury. These injuries are mentioned in Part II of Schedule I of the Act.

Temporary Disability: 25% of the employee’s monthly wages.