When can an employer be liable?
Personal negligence of the employer
Failure to use reasonable care and skill in the provisions and maintenance of a suitable and safe workplace
Breach of statutory regulations in regard to the safety of employees (e.g. Factory Act etc.)
Personal negligence of fellow employees
Negligence of employees in performance of their employment duties
What is covered?
Indemnity is provided against legal liability for accidents to employees under:
The Workmen Compensation Act & subsequent amendments
The Fatal Accidents Act
At Common Law
These may include
Weekly payments in place of wages, in case of temporary disability
Compensation for economic loss (past & future)
Reimbursement of medical and similar expenses
Beneﬁts payable to dependents of insured, in case of death during employment
Costs & expenses incurred for defending any claim (with prior consent of insurer)
What is not covered?
Any injury by accident or disease directly attributable to war, invasion, act of foreign enemy, hostilities, civil war, mutiny, insurrection, rebellion, revolution, terrorism or military or usurped power.
The insured’s liability to employees of contractors (This exclusion shall not apply in case the proposal mentions that employees of contractor/sub-contractor are included) (can be covered with extra premium)
Any liability of the insured which attaches by virtue of an agreement but which would not have attached in the absence of such an agreement
Any liability arising due to Silicosis Coal Miner’s Pneumoconiosis, Asbestosis, Bagasse’s (can be covered with extra premium)
Any sum (other than the compensation for an injury sustained by accident or disease during employment) which the insured would have been entitled to recover from any party but for an agreement between the insured and any such party.
Did You Know?
A workman cannot ﬁle a suit in a Civil Court:
if he has instituted a claim for compensation before a W.C Commissioner.•
If employer agrees to compensate the employee as per the provisions of W.C Act.
General damage for pain & suﬀering, punitive damages for employer’s negligence is NOT COVERED UNDER WORKMEN COMPENSATION
If there is any change in the law, the insurance company is only liable for all included on the date of binding the policy and NOT as per the recent law prevailing after such change.
The law requires the employer to deposit compensation for death within a month of the event, delays invite interest and penalties. The onus is therefore on the employer to arrange for all documents and make payments in the court.