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Top Insurance Companies of Workmen Compensation Policies in India


Summary

Top Insurance Companies

What is it?

The Workmen’s compensation policy is a type of liability insurance policy which covers the legal liability of the employers under the Workmen’s Compensation act, 1923, and Fatal accidents act,1855. The act was passed to provide monetary compensation to the employees injured at the workplace.

The act specifies that the employer will be liable to the injuries caused to the employees at the workplace or during the course of employment.

For instance, if an employee is injured in the workplace while operating a machine it would be the responsibility of the employer to provide monetary compensation to the injured employee. In case of construction workers the responsibility of their safety lies with the contractor. It is very difficult to prevent mishaps at the workplace but there can be a system which provides compensation to the injured employees at the workplace or during the course of their employment.

This has given rise to the “Employee Compensation Policy” or “Workmen’s Compensation Policy,” which transfers the liability of the employers to the insurance companies on purchase of the policy. The workmen’s compensation policy has two wage slabs under which the coverage would be provided in general.

Workmen’s compensation policy can be purchased online from here. Workmen’s compensation policy is confusing and it is advisable to take the help of an insurance broker at the time of purchasing the policy as the insurance brokers would be well versed with the terms and conditions of the policy.

Insurance brokers are legally liable to the deficiency in services provided by them which helps the customers to get better hold and complete information from the insurance broker.

The policy also provides indemnity to the insured against their legal liability under the Fatal Accidents Act, 1855 and at Common Law. The workmen’s compensation policy provides compensation which is awarded by the labor court. All the accidents related to workmen should be reported to the labor commissioner and the ruling will be given by the labor courts or other competent authorities.

The policy also provides additional cover to the employer from being sued again by the employee if the compensation is being paid under the workmen’s compensation policy purchased by the employer.

Recommended Post: Things You Should Know About Workmen Compensation Insurance

Coverage:

Workmen’s compensation policy covers the following:

  • In case of death and disability of an employee the policy would pay compensation to the family of the deceased on behalf of the employer.
  • In case of permanent partial, total or temporary disability the policy will pay compensation to the employee on behalf of the employer.
  • Any injury or accident which causes death or disability of the employee would be covered under the Workmen’s compensation policy.
  • Occupational Illness or disease arising during the course of employment or at the workplace would be covered under the Workmen’s compensation policy.
  • The policy also covers the medical expenditure incurred by the employee due to occupational diseases, compressed air disease or injury suffered at the workplace.

Add-ons:

  • Sub contractor cover: The workmen’s compensation policy provides subcontractor cover in which the main contractor can cover the sub contractor working on the same project on payment of additional premium. This helps to avoid the duplication of the policy. Main contractor can take the workmen’s compensation policy and include all the sub contractors in the same policy instead of each subcontractor taking a separate policy.
  • Medical extension cover: The employer can opt for a medical extension cover which covers the medical expenses of the employees injured during the course of employment or at the workplace. But the cover would be applicable as an inpatient cover where the duration of hospitalization should be for a minimum of 24 hours. The medical extension cover can also be availed on a cashless basis in any of the network hospitals of the insurance company.
  • Terrorism cover: The loss or damage caused due to terrorism or terrorist attack could be covered under the Workmen’s compensation policy on payment of additional premium.
  • Personal accident cover: The workmen’s compensation policy also offers personal accident cover as an add-on. Under this cover death of the employees, permanent or temporary disability would be covered on payment of additional premium. The death of disability of the employees should happen within 12 months from the date of accident for the claim to be payable.
  • Communicable disease cover: The Workmen’s compensation policy also provides cover for communicable disease such as TB, EBOLA, Nipah virus etc. on payment of additional premium. The aggregate liability of the insurance company under this cover shall be limited to the amount mentioned under the policy.

Exclusions:

  • Any type of injury or death of an employee outside the course of employment is excluded under the Workmen’s compensation policy.
  • The employer is not required to pay compensation in case of injury arising from not following the protocols at the workplace.
  • Injuries suffered during the course of employment under the influence of drugs or liquor is not admissible under the workmen’s compensation policy.
  • The policy does not cover the injuries caused due to self attempted suicide or injury by the employee.
  • The policy only covers the full-time employees of the company. If any third party workers are injured at the workplace that would not be covered under the policy.
  • Injuries to employees due to war and invasion would not be covered under the workmen’s compensation policy.

Top insurance companies offering Workmen’s Compensation policies:

  • ICICI Lombard Workmen’s Compensation Policy can be purchased online. The policy covers certain additional perils such as terrorism, occupational disease, etc. on payment of additional premium.
  • Bajaj Allianz Workmen’s Compensation Policy can be purchased online.
  • IFFCO Tokio General Insurance’s Workmen’s Compensation Policy can be purchased online.
  • New India Assurance’s Workmen’s Compensation Policy can be purchased online.
  • Royal Sundaram’s workmen’s compensation policy can be purchased online.
  • TATA AIG Workmen’s compensation policy can be purchased online.
  • Oriental insurance Workmen’s compensation policy can be purchased online.
  • New India Workmen’s compensation policy can be purchased online.

You can check the quote with workmen compensation premium calculator.

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Susheel Agarwal

Namaste. I'm Abhinay Nedunuru, a Fellow of the Insurance Institute of India with a passion to make insurance simple and crisp. I write mostly on insurance and investment. I have a passion for teaching and training in particular to insurance. I'm currently doing my PhD from IIM in Marketing Management.