Published on November 1, 2019
One of the most thought-provoking issues faced by companies today is related to workmen compensation. There are situations in which an unforeseen incident might take place with one of your employees, which may cause an injury or death at the workplace. When such events happen, you as an employer, are legally liable to pay compensation to the employee’s family under the Employees Compensation Act 1923.
Workmen Compensation insurance is one of the most efficient ways to solve this problem and mandatory in most countries, including in India.
You can buy a workmen compensation policy from a reputable insurance broker like SecureNow to meet the obligations of the workmens’ compensation statutes. The policy helps you obtain an affordable way to deal with hefty expenses.
Workmens’ compensation insurance has many myths built around it. Here are five myths related to workmen compensation policy you should never believe in:
It is often assumed that workmen compensation insurance is only good for big companies. Many employers don’t realize that the workmen’s compensation policy isn’t just for big business. A workman’s injury can affect a company irrespective of the size of the company. There are many cases when smaller entities are held responsible for risks such as injury or death of an employee while they are at work. Hence, believing that small companies are at lesser risk makes them suffer financially due to workmen compensation-related claims. It is advisable to buy a workmen compensation insurance plan regardless of the number of employees in your organization.
Any employee who is on the payroll of a company is liable for workmen compensation. The position of an employee does not matter under the worker’s compensation laws. It includes employees that are working full-time as well as part-time. Also, it is a myth that the physical location of an employee affects their status in workers’ compensation insurance.
When you are looking for insurance policies to protect your employee’s right in workmen compensation, you must be able to pick the right ones from all the options that you find. An employee compensation policy is an expense. However, compared to the benefits it offers, like coverage for employees’ medical expenses, lost wages, and other losses from a job-related injury or death, it is worth acquiring. Hence ignore the myths and obtain a workmens’ compensation policy.
Your employees do not need to buy supplementary medical insurance when you plan to purchase a workmen compensation policy. Along with providing compensation to the employee or their family for any injury or death, it also covers medical expenses for treating injuries from accidents during employment. Your employees might incur medical expenditure either during hospitalization or on an outpatient basis. So, the bottom line is that it is a myth that Workmens’ Compensation policies do not provide cover for medical spending.
It is a myth that the workmen compensation policy does not cover legal liabilities. Instead, this policy covers the employer’s legal liabilities due to an accident to the workers during working hours while they are in office premises. The plan pays the legal compensation as set by the local labour commissioner or the city court. Along with this, the policy also covers the defense costs that arise due to lawsuits filed in the labor court, offering a solution to potential problems that may otherwise arise for you.
The bottom line is that you are advised not to believe in these fictional myths and make sure your organization is protected with a good workmen compensation policy.