A Guide to Different Types of Workmen’s Compensation Insurance Policies

According to Indian laws, all employees are entitled to a safe working environment. Injuries and accidents at work are extremely common, leaving the family of an injured employee in a very vulnerable position because they might not always be able to support themselves in such situations. Therefore, workers hurt during the course of their duties must be protected. However, a workmen compensation insurance policy pays out compensation for any injuries incurred on the job. Workmen's Compensation Insurance helps injured or deceased employees' families by providing financial compensation.

In particular, employers in the manufacturing, construction, and transportation industries should buy workmen's compensation insurance for their employees' protection. Whenever a worker suffers a disability due to a workplace accident, the compensation amount received from a workers' compensation policy is essential to support the family. Under workmen's compensation insurance policies, insurers cover a variety of disabilities and expenses, so knowing about them is essential to understanding the policy better.

Types of Disabilities That Are Covered by the Workmen’s Compensation Policy

Temporary total disability

A temporary total disability refers to a complete physical or mental impairment that occurs for a short time and is not permanent. An injury that limits the worker's ability to perform their job-related duties could be due to broken bones, surgery, or therapy. Once the worker has recovered, he or she can return to work.

Temporary partial disability

This occurs when an employee cannot perform all of their regular duties because of an injury or illness. In most cases, employees with temporary partial injuries are able to return to work under light-duty assignments until the condition heals. In this category of injury, employees may be entitled to medical benefits and reimbursement of lost wages. Apart from the WC policy, organisations also invest in group health insurance as a part of comprehensive employee benefits plans.

Permanent total disability

It could be likely that the employee will fully recover from the injury in most cases, but for a period of time he or she cannot work. Workers in this situation may receive lifetime benefits or benefits that end when they retire. As a result of these types of injuries, the employee might need to be admitted to the hospital or be bedridden for some time.

Permanent partial disability

Under Workmen’s Compensation policy, Permanent Partial Disability is a doctor-certified disability for which the company is entitled to compensation.After returning to work, an employee has some permanent impairment that prevents them from doing the same job as they did before the injury. As a result, the worker may be able to move from one job to another, but they will typically earn less than before the injury occurred.

Death

Employees who die due to occupational hazards are covered by the compensation structure described in the Employees Compensation Act, of 1923. In order to collect the Workmen’s Compensation death benefits,

1) A work-related death must occur within a certain period of time after the injury.
2) Death benefits must be requested within a specified period after the employee's death.

The terms and conditions of each workmen’s compensation policy vary, so, it’s very important to read it carefully to see which is right for you. In addition, comparing the quotes and choosing the one that suits one’s needs is essential. Apart from this, a reputed insurance broker in Mumbai or other locations can help you in finding the best policy and also provide risk advisory services for your business.