Workmen's Compensation Insurance

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What is Workmen’s Compensation Insurance
Workmen’s Compensation Insurance is insurance paid by companies to provide benefits to employees who become ill or injured on the job. Through this program, workers are provided with benefits and medical care, and employers have the assurance that they will not be sued by the employee.

Who Can be Insured
This insurance policy is essential for each and every employer, either as the principal or the contractor who engages “workmen” as defined by the Workmen’s Compensation Act to cover his liability towards them under statutory and Common Law. This insurance policy protects the insured party from legal liabilities against injury or death of any of his employees who is a “workman” as defined by the Workmen’s Compensation Act.

Risks Covered
Workmen’s Compensation Insurance can cover all these areas: * Injuries or loss of limbs
* Diseases like emphysema or repetitive motion
* Injury inflicted at work
* Medical expenses
* Rehabilitation needed so workers can return to work
* Lost wages (up to two-thirds of the employee's salary)
* Death
* Liability insurance for the company for lawsuits filed by injured employees

Compensation Offered
This insurance policy stands subject to the provisions of the Workmen’s Compensation Act. The sum insured is based on the annual wages of the workmen during the insurance period. So the compensation is adjusted at the end of the policy period or submission of the statement of actual wages paid during the insurance period. The policy can also cover the medical expense of the employer’s workmen up to the limit specified under the policy.

Exclusions of Compensation
The insurance policy will not pay compensation arising from: * Any injury that does not result in a fatality or disability for 3 days subsequent to the accident. * The first 3 days of a temporary disability if the total temporary disability period does not exceed 28 days. * Any...
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