Employees are the most important assets for any organisation; that is why their protection is the utmost priority for employers. This is where a reliable workmen’s compensation policy comes into play.
It provides financial support in the event of an employee injury caused while they are performing their duties at the workplace. But what happens if the injury is caused by the employee’s own negligence? Will the employer still be held responsible?
That’s what we will explain in this blog. We will discuss how the labour insurance policy is affected by employee negligence and other considerations that employers must be aware of.
What is a Workmen Compensation Policy?
Workmen’s compensation insurance is a type of commercial insurance that provides financial support to employees in the event of an unfortunate incident while they are performing their duties.
The compensation provided helps employees support their medical treatment and finances while recovering from injuries.
Employee Negligence in Workmen Compensation Insurance
Every organisation has its own working and safety protocols that all employees must follow. These protocols and safety rules help employees stay safe from any workplace accident and injuries.
However, if employees deliberately neglect these safety protocols, leading to workplace accidents or injuries, it is known as employee negligence.
Moreover, even though the workmen’s compensation policy has a no-fault principle, it does take into account that all safety measures were taken, and still, the accident happened. If employee negligence is found, it may affect how compensation is awarded.
Situations When Employee Negligence Affects Workmen’s Compensation Claims
These are the situations in which employee negligence can render a workmen’s compensation claim invalid.
- If it is found that the employee sustained a workplace injury due to working in an intoxicated state. For example, after taking any form of drugs or alcohol. This will be considered employee negligence, and no claim will be approved, even in cases of legitimate claims.
- Another situation in which employees cannot claim the labour insurance policy is when the workplace injury results from self-harm or from an act that deliberately worsens their workplace injuries.
- If any employee is found to be engaged in any illegal activity during their duties, which may result in workplace injuries, their claim will not be approved.
- Labour insurance policy for employees will not be accepted in situations when employees sustain injuries outside the workplace premises. It is a necessary criterion for compensation that employee injuries result from a workplace accident that happened on the office premises.
For example, if an employee gets injured in a car accident while commuting to the office, then it will not be considered a workplace accident. Thus, no compensation will be paid.
- If the organisation has established safety regulations and protocols for employees to follow, and they deliberately neglect them, which results in a workplace injury, accident, or loss. Then, it becomes the case of “employee negligence”, and no workmen’s compensation policy claim will be provided to them.
- Suppose an employee engaged in work is a contractor or subcontractor. In that case, they will not be covered under the labour insurance policy unless it is specifically stated in their contract that they will receive workmen’s compensation policy protection.
Benefits of Workmen’s Compensation Policy
- Medical Costs: A workmen’s compensation policy helps injured employees cover the costs of their medical treatment. It includes hospitalisation, diagnostic tests, medications, doctor consultations, etc.
- Wage Cover: The policy also helps employees stay financially afloat while recovering from injuries by providing compensation for lost wages.
- Death Benefits: In the unfortunate event of the employee’s demise due to workplace injuries, the labour insurance policy provides compensation to their dependents.
Summing Up
Every organisation must have a workmen compensation policy; it is not only mandatory by law but also saves from the resulting financial losses and legal troubles. Employee compensation for workplace injuries or death can deduct a significant amount from a business’s capital. However, if organisations have a labour insurance policy, they do not have to pay for this expense from their business funds.
Moreover, providing a workmen’s compensation policy to employees also presents the organisation in a positive light. It creates positive brand value and helps build trust among employees.
However, organisations must always purchase workmen’s insurance policies only from a trusted insurer, such as TATA AIG. Their workmen’s compensation policy provides compensation for workplace injuries in a streamlined manner, offers an easy online purchasing procedure, and hassle-free claims settlement.
