The Indian Workmen's Compensation Act 1923 provides for the payment of compensation by the employer to his employees (for their dependents in the event of fatal accidents), if personal injury is caused to them by accidents due to or in the course of their employment. This is a very useful policy as injuries or accidents can happen any time during course of employment at work site or in the premises of the workstation.
Who must take this Policy?
As such, accidents can occur also due to fault of the employer for which the workmen are not liable to bear any expenses, and if they are to handle these expenditures on own, it will earn a bad reputation for the employer and cause irreparable damage. Thus, employers can rather choose to take the workmen compensation insurance policy so that in case of mishaps to the employees, the employer can be relaxed about paying for the related costs.
Why is Workmen Compensation Insurance Policy Essential?
If the employer runs a firm which has a heavy workforce, it is just intelligent to buy such an insurance policy. Otherwise, the company's resources can run in trouble paying for each and every employee's health or accident expenses. The cover of this policy can be anything from loss pf physical body part of the insured to death, etc. However, basis of sum assured will totally depend on premium promised to be paid and the returns stated, also analysis of the crisis and the amount of reimbursement needed for that cause.