Incredible Benefits of Workmen’s Compensation for an Organisation
Workmen’s compensation insurance provides financial support to workers when they lose their regular income due to work-related injuries or illnesses. But did you know that the policy also brings plenty of benefits for the employers?
Knowing these benefits can help you make informed choices when selecting an employee's compensation policy for your company. So, here are some essential benefits of labour insurance for an organisation you should know.
Top Benefits of Workmen’s Compensation Insurance for an Organisation
1. Creates a Positive Image
A business's brand image and success depend on how well it treats its employees and what measures it takes to support them in challenging times. And, what better way to secure the employees than a workmen’s compensation policy?
An organisation that invests in workmen’s compensation insurance comes across as a responsible company. The employees spread good words about it, which enhances the business’s reputation in the market. Potential employees see the organisation as a safe place to work in the future.
2. Helps Stay Legally protected
Employee’s compensation insurance plan is governed by the Workmen’s Compensation Act of 1923, which makes it a legal necessity. This especially applies to companies that require employees to work in hazardous conditions.
For example, companies involved in mining, construction, chemical-making, transportation, etc., must cover their workers under this plan. Thus, buying a workmen’s compensation plan helps businesses stay on the right side of the law.
3. Improves Productivity
A workers’ compensation policy enhances workplace security. Employees protected by the workmen’s compensation policy are not reluctant to work even under hazardous conditions. This leads to a motivated workforce and enhanced productivity.
4. Financial Security
When a labour insurance plan is in place, the company need not worry about the financial expenditure while handling workplace accidents. Since the employees receive sufficient compensation under the policy’s terms, it saves the company’s operations from being disrupted due to unexpected expenditures.
5. Helps to Recruit Talented Workforce
Everyone wants to work in a company where employee safety is given importance. Thus, when an organisation invests in workers' compensation insurance, it attracts the best talent in the industry, resulting in a skilled and efficient workforce.
6. Reduces Recruitment and Training Costs
When a company looks after employee safety and provides them with employee compensation insurance, they are likely to work with the organisation for a long time. Thus, the organisation does not have to spend its resources on hunting new talents and training them. It ultimately leads to saving recruitment and training costs for new workers.
What is Covered Under Workmen's Compensation Plan?
● Workplace Accidents
Under workmen’s compensation insurance, employees are eligible to get compensation for bodily injuries that they may sustain due to workplace accidents. It also provides the cost of medical treatment required by the employee.
● Workplace-Related Illness
At times, the workers may suffer from diseases or illnesses due to working in a specific environment, like a chemical factory or an industrial gas plant. Such diseases are known as occupational diseases. A workers compensation insurance provides coverage for such diseases.
● Death Coverage
If a work-related accident or disease leads to the unfortunate death of a worker, the policy provides compensation for the same. It includes the cost of carrying out the last rites of the deceased employee and financial assistance for the surviving family members.
● Disability Coverage
Some incidents may cause the employee to suffer from a permanent or temporary disability. For instance, a workplace accident may injure the arms or legs of a worker, preventing him temporarily or permanently from working.
Employee’s compensation insurance provides financial compensation for varying degrees of temporary and permanent disabilities due to accidents at work.
● Legal Expenses
The policy also includes coverage for legal expenses incurred in case an injured worker files a lawsuit against the company.
What is Not Covered Under Workmen’s Compensation
- Non-fatal injuries or minor injuries that do not keep the work off-duty for more than 3 days.
- Accidents or injuries arising due to employee negligence.
- Injury or death occurring outside the course of employment.
- Harm or injury arising due to self-harm, war, terrorism, etc.
- The cost payable to third parties who are not employees or workers.
- Injuries due to self-intoxication.
The Best Workmen Security with TATA AIG Plan
It is evident that a workmen’s compensation plan is crucial if organisations want to secure their workforce and protect them from injuries. However, it is important to invest in a plan that is not just affordable but also provides wide coverage and meets regulatory compliance.
TATA AIG workmen's compensation insurance meets all the mandatory requirements and provides extensive coverage at affordable costs. With policy features like customisable plan variants, a range of policy riders, an easy online buying process, quick and fair claim settlement and more, businesses can focus on their growth while ensuring legal compliance and employee safety.
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