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Workmen Compensation

What is Workmen's Compensation

The Workmen’s Compensation Insurance policy is a compensation payable under a scheme set out in the workmen's Compensation Act Of India. monitored by the Ministry Of Labour. The Policy covers statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by workmen in the Insured's immediate service and arising out of and in the course of employment. Costs or expenses incurred by the insured employer, with the consent of the company, to defend any claims are paid in addition.

Who Need to Buy Workmen Compensation

1

Any employer, whether as principal or contractor, engaging "workmen" as defined in the workmen's compensation Act.

2

Any employer of employees who do not qualify as "workmen" but share an employee-employer relationship.

Why should you buy Workmen’s Compensation Insurance?

The Workmen’s Compensation Policy ensures legal compensation for employees or their dependents in the event of workplace injuries or accidents, including certain occupational diseases, that occur during the course of employment and result in disablement or death.

Why
Why

What is included in Workmen’s Compensation Insurance

✔
Death
✔
Permanent Total Disability
✔
Permanent Partial Disability
✔
Temporary Disablement
✔
Leag cost & Expenses incurred with the company's consent

Frequently Asked Questions

The policy provides coverage for accidental death, permanent total disability, permanent partial disability and temporary total disability.

  • Occupational Disease
  • Compressed Air Disease
  • Contractor /Sub Contractor Coverage
  • Terrorism Cover
  • PAN India Location Coverage
  • Medical Expenses (Per Employee Limit)
  • Cashless for Medical Expenses

"Permanent total disablement" means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement.

List of disablement's is specified in the Workmen compensation Act.

Permanent partial disablement" means, where the disablement is of a permanent nature, such disablement as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement.

List of disablement's is specified in the Workmen compensation Act.

"Temporary disablement" means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of doing the work which he was doing prior to or at the time of the injury.

The Workmen/Employee Compensation Insurance provides for payment of compensation to Employer on behalf of its employees in case of accidental injury to at workplace arising out of and in the course of employment and resulting in death or disablement

  • Workmen compensation claims are for accidents within work premises and during working hours
  • It also covers direct travel of employees from office to home and vice-versa
  • At the time of injury, workman must have been engaged in the business of the employer and must not be doing something for his personal benefit
  • Employer and employee relationship is an important prerequisite for issuance of workmen compensation (WC) / employee compensation (EC) policy

  • Workmen Compensation Act, 1923 [As Amended through Employee Compensation (Amendment) Act, 2017], and subsequent amendments of the said Act prior to the date of issue of the policy.
  • Fatal Accidents as per Fatal Accident Act, 1855
  • Common Laws

  • Construction site workers are excluded from ESIC coverage as per ESI Act but can be covered in WC policy.
  • Employees with wages above 21000 not covered in ESIC but there is no limit of wages under WC/ EC Act.
  • Seasonal Factories (Includes factories engaged Less than 7 Months) are not covered in ESIC, but can be covered in a Employee compensation policy.
  • Organization with up to 10 workers (20 in case of Maharashtra and Chandigarh) does not require to have ESIC registration however there is no restriction as to no. of workers in WC /EC policy.
  • Lower and flexible rates as compared to fixed ESIC Rates.

Occupational Diseases covers those diseases that are specified under Schedule III of Workmen or Employee Compensation Act. It covers those disease which arise due to nature of occupation Ex. disease caused by use of toxic compounds

Compressed air disease is one of the occupational illnesses covered under workmen compensation policy. It is a sickness attributed to the working environments where air pressure may be higher or lower than the normal surface air pressure. Ex. Underground or underwater works.

Any injury on account of terrorist activity within workplace is covered.

Contractor / Sub-contractor and their employees can be covered under this coverage.

If the insured has more than 1 risk locations (operating branches or factories) across the country, PAN India coverage enables employer to take a single insurance policy to cover its employees in all the branches.

  • Policy Number
  • Insured Name
  • Injured Name
  • Date of Accident (Loss)
  • Nature of Claim - TTD (temporary total disablement) / PPD (permanent partial disablement) etc
  • Brief description of accident

  • Nature of work / Occupancy
  • No. of Employees
  • Monthly wages
  • Policy duration
  • Risk Location Address
  • Claim Experience of last 3 years with amount and count of claims

  • Sum Insured is the total earnings of the employees in the organization.
  • The Sum Insured is calculated on the basis of monthly wages of employees.
  • Wages includes basic salary, allowance, perquisites or any benefits provided to the employees (Other than reimbursable expenses made by employees)

The policy is governed by the Workmen's Compensation Insurance Tariff (W C Tariff). However, the premium rates depends on the industry class and nature of work carried on by the employee. Rates are applied on the employees estimated annual gross wages/salaries (the sums insured under the policy) and adjusted at the end of the policy period on submission of the statement of wages paid during the period.

The tariff provides two types of insurance as follows :

  • Table A : Indemnity to the insured under the workmen's compensation act 1923, the Indian Fatal Accident Act 1855, or at common law.
  • Table B : indemnity to the insured against their legal liability under the Indian Fatal Accidents Act, 1855 and at common Law. This policy is not issued to cover employees who fall within the definition of "workmen" under the workmen's compensation act 1923.

At Finoxo Solutions, we specialize in providing tailored insurance solutions that cater to both commercial and individual needs. With a commitment to excellence and innovation, we ensure our clients receive comprehensive coverage and unmatched service for their peace of mind.

Address

B-407, Decora 9 Square, Nr. Nana Mava Chowk,RAJKOT

+91 90333 30444

info@finoxo.in

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