WHAT is workmen compensation?
The Workmen’s Compensation Insurance Policy indemnifies the employer against his legal liability to his employees for accidental injury, or death, and medical expenses (as an add-on) in course of employment.
Workers’ compensation is insurance that provides cash benefits and/or medical care benefits for workers who are injured or become ill as a direct result of their job.
While compensation to workmen is statutory under law, insurance thereof is not compulsory.
LIABILITY arising out of any of the following conditions:
Permanent Total Disablement
Permanent Partial Disablement
Temporary Total Disablement
Temporary Partial Disablement
Medical Expenses (optional)
Additionally, legal costs and expenses incurred .
WHO is a workmen?
Workmen under the Industrial Disputes Act, 1947 (Act) are defined as employees who have been engaged to do manual, unskilled, skilled, technical work.
BENEFITS UNDER THE EMPLOYEE’S COMPENSATION (AMENDMENT) ACT, 2009
minimum of Rs.80.000 is increased to Rs.1,20,000
50% of the monthly wages of deceased multiplied by the relevant factor.
• Permanent Total Disablement
minimum of Rs.90,000 is increased to Rs.1,40,000
60% of the monthly wages of deceased multiplied by the relevant factor.
• “Definition of Employee”- also now includes CLERICAL employees.
Rates for workers’ compensation policies are calculated using several different factors. These factors include the type of business operations the company conducts, the total number of employees, and the total annual estimated wages.
- Take Immediate action:
- Required Documents
- Give immediate written notice to the insurance company about the death or disablement of the employer.
- Intimation of Accident to Factory Inspector if the accident happens in a manufacturing plant.
- Furnish all information and documentary evidence as the insurance company may require.
- Deposit the compensation payable to the employee with Workmen Compensation Commissioner. Obtain their receipt and submit the same to Insurance Company.
- If any notice is received from W.C. Commissioner, send the same to Insurance Company
- To collect the relevant data with the objective to quantify reasonable and just compensation, a Workmen’s Compensation Insurance Policy.
- Claim Form duly filled in & signed.
- Report of Accident to Workmen
- Attendance Register for a period of at least 3 months prior to accident
- Medical Report
- Wage Register/Salary Slips (acknowledged) for a period of at least 3 months prior to accident
- Proof of Employer & Employee relationship
- Leave and duty joining particular strained investigator is appointed by the insurance company.
- The Insured’s liability to contractors’ employees (unless specifically declared and covered)
- Any liability of the Insured which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.