One key responsibility of an employer is to provide safe and healthy work environment.
In an unfortunate event of an employee suffering a bodily injury (temporary or permanent), or death during employment, employer is legally liable to pay compensation to the employee under the Employee’s Compensation ACT 1923 & subsequent amendments thereof, The Fatal Accidents Act 1855, and at Common Law.
Employee’s Compensation (earlier known as Workmen’s Compensation) Insurance Policy covers statutory liability of an employer under Employees (Workmen’s) Compensation ACT 1923 for death of or bodily injury or occupational diseases sustained by the workmen arising out of and in the course of employment.
It includes immediate costs like ambulance costs incurred to transport the employee to the hospital who has met with an accident and long-term costs like lost wages on account of being away from work due to injury or illness.
WHO SHOULD BUY
Any firm or employer, a contractor who employs workmen as defined in the W.C. Act 1923 can buy the Employee’s compensation insurance policy. This insurance cover provides legal liability coverage and also helps in easing the financial burden on employees and employers.
KEY FEATURES OF THE POLICY
The Policy covers statutory liability of an employer for death or bodily injuries caused to employees due to accidents arising out of and in the course of employment. Cover is provided for: -
• Death
• Permanent Total Disablement
• Permanent Partial Disablement
• Legal costs & expenses incurred with insurer’s consent
• Policy can also be extended to include medical expenditure for necessary treatment
KEY EXCLUSIONS
• War
• The Insured's liability to contractors’ employees (unless specifically declared and covered)
• Any liability of the Insured which attaches by virtue of an agreement, but which would not have attached in the absence of such agreement
