Workmen’s Compensation Policy is an insurance policy that covers the employees by providing compensation in the form of wage replacement and medical benefits to them against income lost, medical care and rehabilitation cost when they are injured on the job or death caused due to accidents/occupational diseases arising out of and in the course of employment.
It is a sort of compensation payable under a scheme mentioned in the Workmen’s Compensation Act of India, monitored by the Ministry of Labour.
Features of Workmen’s Compensation Insurance Policy :
- Policy covers legal liability of the employer due to bodily injury out of accident / illness of the employee whilst in the course of and arising out of employment.
- It is a good policy for establishments like Factory, Engineering / Automobile workshops and also for construction companies, builders etc.
- The compensation payable for such injuries / illness are as per Workmen’s Compensation Act.
- Claim for Death & PTD (Permanent Total Disability) is paid through Labour Commissioner.
- Claim for TTD (Temporary Total Disability) can be paid direct to insured.