Workmen compensation policy is a type of liability insurance policy which covers the legal liability of the employer in case of injury of the employee leading to death or disability in the workplace or during the course of employment. Workmen’s compensation policy is designed and operates according to the Workmen’s compensation act, 1923 and its subsequent amendments.
Workmen’s compensation policy https://www.ethika.co.in/workmen-compensation-policy/ is mandatory for every organization which has more than 20 employees working with them. If the Workmen’s compensation policy is not taken, then it would be dealt with as per the regulations under the Workmen’s compensation act by the labor commissioner.
Workmen’s compensation policy covers the following:-
- Death of the Workmen due to an accidental injury resulting in death or Disability.
- Permanent total disability of the workmen.
- Permanent Partial disability.
- Temporary total disability.
- Medic expenses of the Workmen injured at the workplace or during the course of employment resulting from an accident. The medical expenses limit would be specified in the policy terms and conditions.
- Occupational diseases arising out of employment or at the workplace.
- Compressed air disease
Occupational diseases are those which arise due to the working conditions and would evolve over a period of time. The continuous exposure to the workplace environment results in occupational diseases. These include poisoning by lead, tetraethyl lead, phosphorus, mercury, manganese, nitrous fumes, benzene etc. Occupational diseases may result from a variety of biological, chemical, physical and psychological factors that exist in the workplace or the environment where the employee is working. According to the part B of Schedule III of the Workmen’s compensation act of any employee contracts Anu disease specified under the act which is the occupational disease peculiar to that employment, it would be deemed as an injury arising out of an accident at the workplace and during the course of employment and the employer would be made liable to pay compensation to the employees.
Compressed air disease is a type of illness which would arise due to the difference in the air pressure. This is also known as Decompression Sickness or DCS arises when a person moves from a high pressure area to a low pressure area. The difference in pressure results in air’s gases dissolving in the bloodstream. The bubbles would be formed throughout the body and disturbs the flow of blood. The nitrogen dissolved in the blood results in the formation of bubbles.
Workmen’s compensation act would go with the Fatal accidents act and Common law when an employee is injured at the workplace leading to death or Disability. The organisations which have less than 20 employees are advised to take Workmen’s compensation policy as they could be sued under the Fatal accidents act and Common law where the liability of the employer would be unlimited.
The Workmen’s compensation policy would also pay for the expenses incurred by the insured in relation to the court cases as a result of Workmen’s compensation claim. These expenses would be paid only if the written consent of the insurance company is taken before proceeding.