“The healthier the employee the wealthier the business.”
It’s true that only through the hard work and determination of your employees, will your business make great strides. Employees are your greatest assets, and as an employer, it’s your responsibility to provide for your employees, whether it is financially, medically or in any other way.
This is especially true for employees working in an environment which makes them more prone to health-related issues like bodily injuries, or in some severe cases, perhaps even death. Be sure to secure your workers with a policy that covers the statutory liability of the employee in such critical circumstances. One such insurance plan is the Workmen Compensation Policy that offers insurance to your workers under the Workmen Compensation Act, 1923 in case of a serious casualty.
Worker Compensation Policy for your workers will give great relief to them as, this policy will cover medical expenses and legal liabilities arising in a problematic situation. While many organisations know the basic benefit of this insurance policy, there are many lesser-known benefits that only a few top organisations are aware of. Following are the lesser-known benefits that make this policy a must for every organisation-
Legal Liability coverage
Workers compensation insurance was formed as a bargain between employers and employees. As employers were tired of paying up against legal suits filed by employees.
In today’s world, the legal cost can be high and can be financially crippling for small organisations without a proper insurance cover. Hence, workmen compensation provides legal liability coverage.
Occupational disease coverage
Certain disease like asthma, bronchitis etc. are on the rise in the last few years and are very common among people. What will you do if your worker raises a claim for such an illness citing it as an occupational disease?
Workmen compensation policy comes handy here as it provides medical expenses to your worker, and he/she needn't spend their own precious money.
This policy will not only benefit the employee but will improve your organisation’s image in the employment market.
Vocational rehabilitation expenses
Let’s say your worker gets hurt while working in your factory in such a manner that he/she will not be able to continue work in the same field again in his/her life. What can you do as an employer for your worker?
Workmen liability insurance can help you cover expenses towards training your accidentally hurt worker in an alternate field or vocation where he/she can continue to work and provide for their family.
Calculation of income lost and corresponding compensation
Workmen Compensation policy also covers compensation for partial or total disability suffered by any employees.
In some severe cases where employees become jobless for part of or their whole life due to a disability, the employer has to provide for the income lost.
False calculation of income liability can cause dispute between employer and employee. Workmen liability insurance helps to avoid such conflicts under Workmen Compensation Act 1923.
For A Temporary Disability of The Worker
The employer has to pay 25% of his wages every two weeks.
For Partial Permanent Disability
Compensation= % of lost earning capacity X monthly wage X employees potential future earning
You can calculate compensation accordingly.
Inclusion of all the employees
Not only labour and blue collar workers, but every employee is covered under workmen compensation policy from the date that the policy comes into effect.
Any claim under the Fatal Disability Act 1855 is also covered.
Workmen compensation policy is an essential part of any organisation. It benefits both employee and employer. The above benefits are only known by a few top organisations, but now you are also aware of these.
Get your workmen compensation insurance with the help of any reputable insurance broker like SecureNow and provide the best for your employees.