Workmen’s Compensation Insurance

Purpose

Employer shall be liable before the Court of Law to pay compensation, in accordance with the provisions of Workmen Compensation Act, 1923, for personal injury or death or disease contracted specified therein as an occupational disease peculiar to that employment in Part A Schedule III of Workmen Compensation Act 1923, caused to a workman by accident arising out of and in the course of employment.

‘Personal injury’ under the Act means physiological injury. It may be external, or it can be internal also.

Workmen:

All employees working for the employer/ insured. In case of contract labour the liability of the principal is absolute though he may not be the actual employer. e.g For The Security Gaurds provided by a security agency, the liability under WC Act also falls on the Principal.

Wages:

For purpose of calculating any claim the monthly wage taken into account are the actual wages subject to maximum of Rs.4,000/. Wages includes all allowances and cost of perks.

Legal Liability may arise due to:

• Breach of, any of the, statutory regulations provided for ensuring safety to workers inside the factory premises.
• Negligence of co-employees.
• Injury or Accidental Injury to workers while performing their duties

Policy covers is subject to

• Workmen’s Compensation Act, 1923
• Fatal Accidents Act, 1855
• Any other Common Law

Employer is liable to pay compensation for:

• Death
• Permanent total disablement
• Permanent partial disablement
• Temporary disablement whether total or partial

The Employer need not pay compensation – in respect of any injury caused by an accident which is directly attributable to

• The workman having been at the time under the influence of drink or drugs.
  Or
• Willful disobedience by the workman of orders and rules expressly given to secure the safety of the workmen
  Or
• Willful removal or disregard by the workman of any safety devices provided for the safety of workmen

In cases of death or permanent Total Disablement of a workman, the above defences are not available to Employer.

If any disease is prescribed in the Act as “Occupational Disease”, the illness is deemed to be an injury. If the Employer defends the Claim, such expenses are also payable.

Extension of cover

Policy may be extended to cover Medical expenses incurred by the employer by payment of additional premium as per Workmen Compensation policy.

The Company shall not be liable under the policy in respect of:

• Any injury by accident or disease directly attributable to war invasion act of foreign enemy hostilities (whether war be declared or not) civil war, mutiny, insurrection, rebellion, revolution or military or usurped power.
• Liability towards employees of the contractor.
• Liability of the insured which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.
• Sum which the Insured would have been entitled to recover from any party but for an agreement between the Insured and such party.

When does a claim arise under WC ACT:

The Claim under WC Act arises in case of any injury (fatal & non-fatal) / decease arising out of and in course of his employment.

IN case of an accident invoking liability under WC  ACT the employer/insured needs to take following steps:

• Inform the incident to WC Commissioner in whose jurisdiction the accident occurs.
• Inform Police of the incident.
• Inform us of the accident.

Claims Procedure

For preferring a claim he needs to submit us the following Documents to enable us to proceed with investigation of the case:

• Claim Form duly filled and signed (A specimen blank copy enclosed)
• Submit proof of employee/ Employer relationship.
• Police FIR/ PMR (In case of fatal accidents)
• Internal/ Dept Enquiry report.
• Report from Labour Dept.
• Copy of letter informing WC Commissioner of Accident.
• Medical record / reports showing nature & extent of Disability in case of Permanent Disability cases.
• Medical records/ reports evidencing the medical expenses and period of temporary disability.
• Leave record of the employee in case of  WC Claim.

The investigator is appointed to verify the records wage Bills/ Employment records and any shortfall  in premium (i.e under-declaration of Wage Bill or No. of employees) till date plus  a reasonable premium for future  needs to be necessarily deposited before the claim is settled. In case of glaring difference between the initial declaration and the actual figures are detected, the claim may even be prejudiced.

In the event of claim, the Insured must inform the insurer in writing & request for a Claim Form

In Case of death of employee

• Claim form
• Confirmation that the accident has happened in the course of employment
• Age proof for the deceased employee
• Complete Medical Papers
• Post Mortem Certificate
• Copy of Order of the WC Commissioner for the award passed
• Statement of Wages
• Muster Roll of the employees

Proof of payment In case of Permanent Total Disablement and Permanent Partial Disablement

• Claim form
• Confirmation that the accident has happened in the course of employment
• Age proof for the disabled employee
• Complete Medical Papers
• Disability Certificate of the attending doctor
• Copy of Order of the WC Commissioner for the award passed
• Statement of Wages
• Muster Roll of the employee
• Proof for Payment.

In case of death and Permanent disablement claims, the claim would be processed only after the full compensation is deposited before the Commissioner

In case of Temporary Total Disablement

• Claim form
• Confirmation that the accident has happened in the course of employment
• Complete Medical Papers
• Fitness Certificate from the attending doctor
• Statement of Wages
• Muster Roll of the employee
• Complete list of workers employed as on Date of Accident under all categories
• The Company reserves the right for appointing of an investigator for the claim.
• On receipt of the above documents by the Insured, the claim will be processed.
• Earnings, Wages and Salaries

Shall mean the employees total remuneration paid or fallen due for payment including overtime, value of board and/or lodging, housing accommodation bonuses and all other perquisite privileges or benefits in kind or money, received by the employees from the employer in connection with their employment.

Or

As specified under Workmen Compensation Act, 1923.

Or

The Sum insured available under the policy. Whichever is less.

Quantum of Claim:

The amount of claim payable under WC Policy is strictly governed by the WC ACT  and depends upon two factors:

• Monthly wages of the employee.
• Age of the Employee. Based upon the age the WC ACT specifies a Factor Multiplier Table which is appended with this note.

When Death results from the injury:

An amount equal to 50% of the monthly wages of the deceased workman multiplied by the relevant factor.

Or

An amount of Rupees eighty thousand whichever is more.

When permanent total Disablement results from the Injury:

An amount equal to 60% of the monthly wages of the injured workman multiplied by the relevant factor.

Or

An amount of Rupees Ninety Thousand whichever is more.

When permanent Partial Disablement results from the injury:

In case of an injury specified in the ACT, such percentage of the compensation which would have been payable in case of Permanent Total Disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury.

And

In case the injury is not specified in ACT, such percentage of the compensation payable in case of permanent total disability as is proportionate to the loss of earning capacity(as assessed by the qualified medical practitioner) permanently caused by the injury.

(where more injuries than one are caused by the same accident, the amount of compensation under this head shall be aggregate but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.)

Where Temporary Disablement whether total or partial results from the Injury:

A half monthly payment of the sum equivalent to 25% of the monthly wages of the workmen, if the disablement is for more than 3days. This will continue during the period of disablement or 5yrs. whichever is shorter.

THE WC Claim needs to be deposited necessarily with WC Commissioner of the Area, unless order to the contrary are obtained from him. The discharge of WC Commissioner is sufficient discharge for us.