EMPLOYER'S LIABILITY / WORKMEN'S COMPENSATION

WHAT IS EMPLOYER'S LIABILITY

The Employer’s liability insurance cover/indemnifies the insured against liability arising out of an accident resulting in the death, personal injury or serious and permanent incapacity of the insured’s employee arising out of, and in the course of the employment

Workmen Compensation was brought in to provide organizations and workers a medium to decide the extent of compensation owed by the employer if a worker sustains an injury at the workplace and unable to attend to his duties and earn wages for an extended time. The act ensured that the workers are compensated for their loss of wages and health, it limits the employer’s financial responsibility to a calculable amount on the other.

Workmen compensation insurance policy covers these liabilities of the employer as prescribed by the Workmen Compensation Act. Therefore, any workmen compensation policy should cover the following:

• Death
• Permanent total disablement
• Permanent partial disablement
• Temporary disablement
• Medical care from the injury or illness
• Replacement income costs
• Costs for retraining
• Legal costs incurred if any
• Benefits to survivors of workers who are killed on the job

Besides the above Workers’ compensation insurance is not only limited to accidents. It also covers problems and illnesses that might develop over an extended period of time due to the same injurious activity.

 WHAT DOES IT COVER

The workmen compensation covers:

• Bodily injury caused by accident during the course and scope of employment
• Bodily injury cause by disease or aggravated by the conditions of the employment
• Death or temporary disablement
• Permanent total or partial disablement
• Legal cost and expenses incurred with the company’s consent

EXCLUSIONS

The common exclusions of most of the workmen compensation insurance policies are:

• Non-fatal injuries
• The initial 3 days of disablement and the total disablement is lesser than 28 days
• All the injuries that do not cause partial disablement for more than 3 days
• Injuries caused due to war, nuclear, or riot
• Injuries caused to the internal removal of the security device or due to the carelessness of the security device
• Accident or injury cause under the influence of alcohol or drug
• Liabilities faced for the employees of contractors
• All the liabilities assumed in an agreement
• The employees who are not considered as workmen as per ‘Workman Compensation Act’.
• All the diseases that are specified in part ‘C’ of workmen’s Compensation Act’.
• Any changes made in the status of the provisions after the commencement of the policy.