Workmen’s Compensation Insurance is insurance paid by companies to provide benefits to employees who become ill or injured on the job. Through this program, workers are provided with benefits and medical care, and employers have the assurance that they will not be sued by the employee. Who Can be Insured This insurance policy is essential for each and every employer, either as the principal or the contractor who engages “workmen” as defined by the Workmen’s Compensation Act to cover his liability towards them under statutory and Common Law.
This insurance policy protects the insured party from legal liabilities against injury or death of any of his employees who is a “workman” as defined by the Workmen’s Compensation Act. Risks Covered Workmen’s Compensation Insurance can cover all these areas: * Injuries or loss of limbs * Diseases like emphysema or repetitive motion * Injury inflicted at work * Medical expenses * Rehabilitation needed so workers can return to work * Lost wages (up to two-thirds of the employee’s salary) * Death.
* Liability insurance for the company for lawsuits filed by injured employees Compensation Offered This insurance policy stands subject to the provisions of the Workmen’s Compensation Act. The sum insured is based on the annual wages of the workmen during the insurance period. So the compensation is adjusted at the end of the policy period or submission of the statement of actual wages paid during the insurance period. The policy can also cover the medical expense of the employer’s workmen up to the limit specified under the policy.
Exclusions of Compensation The insurance policy will not pay compensation arising from: * Any injury that does not result in a fatality or disability for 3 days subsequent to the accident. * The first 3 days of a temporary disability if the total temporary disability period does not exceed 28 days. * Any non-fatal injury caused by an accident that is directly attributed to. * Influence of drinks or drugs. * Willful disobedience of an order that would have secured the workmen’s safety. * Willful removal or disregard of any safety device.
* War or nuclear group of perils. * Liability towards employees of the contractors of the insured (unless specifically declared. ) * Any employee who is not a “workman” as per the Workmen’s Compensation Act. * Liability assumed under an agreement. * Occupational diseases unless cover is extended on payment of extra premium. * Any change in statute provisions after the policy has commenced. Importance of Workmen’s Compensation Insurance Medical and Financial Coverage: On the happening of accident or certain contingency, the workers get medical coverage.
If workers become physically inactive, they get the reimbursement amounting money that they would get from the workplace if the accident would not take out their ability. Saving the Employer and the Business: If any employer suffers due to any sudden accident, the employer is sued. Sometimes the employer even the business is at a loss or bankrupted on the consequence of losing court case. The insurance policy saves the employer and the business from this unwanted situation. Creating Employment:
On the appearance of this idea, the scope of insurance business has widened and the opportunity for opening the door of employment has been enlightened. Developing Efficiency and Business: As both the employer and the employees are assured, they can work without being tensed and their efficiency is developed which also leads to the development of business. Increasing Per-Capita and National Income: As employment is enlarged and business is developed, per-capita of people and national income of the country is also increased. Creating Entrepreneurs:
Due to risks, people are reluctant to entering the prospective sector of entrepreneurship. As this insurance policy reduces risks, people are entering into this sector now-a-days. Development of Economy: As business is developed and increased, the profit and capital is also increased and it results in the development of economy of the country. How to File for Workmen’s Compensation Instructions * 1 Report your injury or job-related illness to your employer immediately. Know your employer’s injury policy in advance; failure to comply may be grounds for denying your claim. * 2.
Visit a doctor as soon as possible. Victims of on-the-job accidents and injuries are routinely taken to a company paid doctor or clinic as soon as the incident is reported. Call your personal physician to schedule a second opinion or follow-up as soon as possible. * 3 Obtain a claim form from your state workers’ comp office or download it online (see Resources). Be sure to thoroughly read and carefully follow the instructions at the top of the form. Complete only the “Employee” section; sign and date the form and make a copy for your own records. * 4 Take the form to your employer.
If your injuries or illness is too severe for you to present the worker’s comp form to your employer in person, send it via certified mail. You are entitled to $10,000 in medical care while your employer decides to accept or deny your claim. * 5 Your employer will complete the appropriate sections and file the workers’ comp claim form to the insurance company for processing. Request a copy of the completed form for your records. The insurance company will contact you regarding the status of your claim. Be patient; the insurance company has 14 days, by law, to notify you of your workers’ comp status.