FAQs about workmen compensation policy

     
  Q 1) What is workmen compensation insurance policy ?
      This policy covers the legal liability of an employer to an unlimited extent, under the workmen's compensation Act, the fatal accidents act, and at common law. This liability devolves statutorily on the employer if his employee, falling under the purview of the definition of "workman", suffers death, bodily injury (both temporary and permanent), and disease arising out of and in the scope of his employment   .

Q 2) What are the Relevant statutes and laws under wc/employers liability policy ?
The policy covers legal liability of an employer under:
  • Workmen’s compensation Act, 1923, and subsequent amendments of the said Act prior to the date of issue of the policy
  •  Indian fatal Accidents Act, 1855, and subsequent amendments of the said Act prior to the date of issue of the policy
  •  Common law
Q 3) Who needs these policies ?
  • Any employer, whether as a principal or contractor, engaging “workmen” as defined in the workmen’s compensation Act.
  •  Any employer of employees who do not qualify as “workmen” but share an employee-employer relationship.
Q 4) What are the coverage under this policy ?
  • Death
  • Permanent total disablement
  • Permanent partial disablement
  • Temporary disablement
  • Legal costs and expenses incurred with the company’s consent extensions
  • Actual medical, surgical and hospital expenses including the cost of transport to hospital for accidental employment injuries
  •  Any compensation for diseases mentioned in part ‘C’ of Schedule III of the workmen’s compensation Act, 1923, which arise out of and in the course of employment
 
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  Q 5) What are the general exclusions under this policy ?
  • Any injury which does not result in fatality or partial disablement for a period exceeding 3 days
  • The first 3 days of disablement where the total disablement is less than 28 days
  • Any non-fatal injury caused by any accident directly attributed to:
  •  Influence of drinks or drugs
  •  Wilful disobedience of an order for securing safety to the workman
  •  Wilful removal or disregard of a safety guard device
  • War group and nuclear group of perils
  • Liability to employees of contractors of the insured (unless separately declared and covered)
  • Liability of the insured assumed under an agreement
  • Diseases mentioned in part ‘C’ of schedule III of the workmen’s compensation Act, 1923
  •  Any change in statute provisions after the policy has commenced.
Q 6) How is the compensation to the injured workmen arrived at ?
The compensation is arrived at after taking into consideration the present wages of the workmen, age and future earnings factor and the nature of the injury (viz. type and extent of disablement, whether death ). After taking these factors into consideration the compensation payable is arrived.
Q 7) What are the factors that determine the premium payable under the policy ?
Some factors that determine the premium are : The industry in which the company is engaged in, the wages of the workers and the claim ratio of the insured.
Q 8) Can I change the sum insured during the period of the policy ?
Yes. One can change the period of the policy by declaring the estimated wages and number of additional from a particular date till the expiry of the policy. At the end of the policy term, if the estimated wages are more than the actual wages, the insured can get refund of premium from the insurer and vice versa.
Q 9) Is it mandatory that the policy has to be of one year ?
No. One can take policies having tenure less than a year.
The above FAQs have been designed in the Indian context and may or may not be valid for insured residing in other countries.