Workmen Compensation Policy
What is Workmen Compensation Policy?
The Workmen’s Compensation Insurance policy covers the legal liability of the employers under the Workmen’s Compensation Act 1923 and Fatal Accident Act 1855. Despite the preventive measures and safety precautions taken, accidents at your workplace are inevitable. The Workmen’s Compensation policy enables the employer to pay the compensation to the employees or for their family in case of death or bodily injury (permanent partial disablement / permanent total disablement / temporary disablement) caused due to injury and accident at workplace (including certain occupational disease) arising out of and in the course of employment. This policy provides coverage for medical expenditure, occupational disease, compressed air disease and terrorism.
Who should buy Workmen Compensation Policy?
Policy is required by all manufacturing/trading/servicing setups for all floor workers and office staff as well. Most of the contractors’/Sub contractors stands benefited by this policy. Policy can be taken by Individual/Public or Private companies/ Partnership firms or by any of business/Trading entity operating in the Country.
Why should you buy Workmen Compensation Policy?
The Workmen’s Compensation policy provides payment for legal compensation to Employees or their dependents in case of injury and accident of the employees at workplace (including certain occupational disease) arising out of and in the course of employment and resulting in disablement or death.
What is included in Workmen Compensation Policy?
Basic covers include Accidental death, Permanent total or Partial Disability and Temporary total disability. Add on covers include Medical Extension, Compressed Air Disease, Occupational Disease, Terrorism and Sub Contractor Coverage.
How is Workmen Compensation Policy different from ESIC (Employee State Insurance)?
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