Every employee in India wants to feel safe while working. Unfortunately, accidents sometimes happen at the workplace, and employees may get injured. In such cases, workmen compensation insurance plays a crucial role in providing financial protection.
If you are curious about how a workmen compensation injury settlement works, you are not alone. Many workers often find this process confusing and stressful. Let us break down the features of labour insurance so you know what to expect if an accident happens at your workplace.
What Is Workmen Compensation?
Workmen compensation refers to the compensation that an employer must pay if a worker suffers an injury or dies while working. It ensures that employees or their families do not suffer financial hardship due to workplace accidents.
The Workmen Compensation Act of 1923, now known as the Employees’ Compensation Act, governs these settlements in India. This law ensures that every employer takes responsibility for their workers’ safety and well-being.
Who Is Eligible to Receive Compensation?
Not all workplace injuries qualify for compensation under labour insurance. An employee must meet a few conditions to be eligible.
- The injury must occur while doing official duties.
- The employee must not be under the influence of drugs or alcohol.
- The accident must not be self-inflicted or due to gross negligence.
Even if an employee is at fault, they may still be eligible for compensation as per the “no-fault” principle of the Act. That means compensation is paid in some cases, regardless of who caused the accident.
What Injuries Are Covered under Workmen Compensation Insurance?
- Permanent Total Disability: Injuries that leave the worker completely disabled.
- Permanent Partial Disability: Injuries that limit some abilities but allow partial work.
- Temporary Disability: Injuries that allow the employee to return after recovery.
- Death: When an employee dies due to a workplace accident.
In case of death due to a work-related injury, the employee’s dependents are entitled to receive compensation.
How to File a Workmen Compensation Insurance Claim?
1. Inform Your Employer Immediately
The injured worker or a family member must inform the employer as soon as possible. The notice should include information like when and where the accident happened, along with any other relevant details. If the injury is serious, the worker should seek medical help immediately.
2. Medical Examination
The injured worker may need to go through a medical checkup. This helps to understand the severity of the injury. If the employee refuses, it may delay or reduce the compensation.
3. Formal Claim Submission
A formal claim must be submitted for compensation. It should be filed with all required documents. These documents usually include:
- Doctor’s reports
- Original disability certificate from the doctor
- Complete medical reports
- FIR copy
- KYC documents
4. Claim Review and Settlement
The insurer verifies the documents and may call both parties for a hearing. If everything is clear, the compensation amount is calculated and awarded.
How Is the Workmen Compensation Amount Decided?
The amount of compensation depends on several factors. Here is how it is calculated:
- Wages of the Employee: The monthly wage plays a big role in deciding the compensation.
- Age of the Employee: Younger employees often receive more because of longer working years ahead.
- Nature of Injury: Total disablement or death results in higher compensation than partial injuries.
How it works:
- In case of death, the compensation is 50% of the monthly wage multiplied by a factor based on age, or ₹1,20,000, whichever is more.
- In case of permanent total disablement, it is 60% of the wage multiplied by a factor based on age, or ₹1,40,000, whichever is higher.
- In case of partial permanent disability, A worker with partial permanent disability gets compensation based on reduced earning capacity as per Schedule I.
- In case of temporary disability, A temporarily disabled worker gets 25% of monthly wages every half month for up to 5 years.
What Is the Role of Workmen Compensation Insurance?
Workmen compensation insurance ensures that employers can pay compensation without facing a financial burden. The insurance covers the cost of compensation, legal expenses, and sometimes medical bills.
Companies buy this insurance from general insurers. In India, top insurers like TATA AIG offer labour insurance to help businesses provide fair compensation to employees in case of a workplace accident. The premium of such policies depends on the nature of the job and the number of employees covered.
Conclusion
Workmen compensation injury settlements in India are designed to support injured workers without delay. The law protects employees and ensures they receive financial help in difficult times. It is important to follow the proper procedure after any workplace accident.
Whether it is a minor injury or a major accident, do not ignore the legal process. File your claim, collect your documents, and cooperate during the investigation. With workmen compensation insurance and the right legal support, you can receive the justice you deserve.
If you are an employer, ensure that your company has proper labour insurance to protect both you and your employees.
