What Are Fatal And Non-Fatal Accidents In Workmen Compensation Policy?

Workplaces are meant to be safe. Nevertheless, accidents do take place despite all attempts. Such accidents may cause small injuries or severe injuries, or even death. WC policy insurance may assist the person injured or their relatives at this time.

The cover of labour insurance takes care of any worker or his or her family in the case of death or injury at work, such that the family receives some form of compensation. Definition of fatal and non-fatal accidents under the Workmen’s Compensation system in India. Let us now understand the definition of fatal accidents and non-fatal accidents under the workmen’s compensation system in India.

Table of Contents

What Is The WC Policy?

Workmen’s compensation policy, also commonly referred to as labor insurance, is a form of insurance coverage that offers benefits to employees or their relatives should injuries, incapacitation, or death be caused by an event/incident as a result of employment activities. It also offers employers financial protection against legal responsibility in the event of accidents in work areas.

The Employees’ Compensation Act of the year 1923 is the basis of the labor insurance policy that has become compulsory for most of the Indian enterprises. It is a benefit to the employer as well as the employee since the employer has to pay compensation to the employee under any given circumstances, and to save the employer the surprise investment. The policy aims to provide a fair and expedited mechanism for processing injury or death claims.

What Are Fatal Accidents?

Situations that result in the death of a worker are called fatal accidents. These accidents may be caused by failure of the machinery, falling off structures, or exposure to malignant chemicals.

If a fatal accident occurs, the dependents of the victim worker are not supposed to go without compensation. This is based on the last drawn earnings of the worker as well as the age.

As an example, when one dies when falling off a scaffold as a construction worker, the WC policy will treat it as a fatality. The worker has to provide some compensation to his lawful beneficiaries.

The Act demands that the employer report such accidents to the insurance carrier within forty-eight hours. They also need to inform the WC Commissioner so that the pay of the employee is made.

What Are Non Fatal Accidents?

Accidents that are not fatal involve injuries in which people are not killed. The injuries might include burns, fractures, sprains, and loss of limbs. The accident may even cause partial or complete disability, even when the worker survives. Under the labor insurance policy, compensation is awarded depending on the degree of injury.

The non-fatal incidents are also categorized into two:

1. Temporary Disability

Temporary disability means that the employee will be injured and cannot perform any duties for a short period. As an illustration, an employee who incurred a fracture might need two months in a prone position. During this condition, the employee receives some percentage of his salary while recovering.

The injured employee is recompensed via the law at a half-monthly rate until the time he/she can work (during the period of 5 years). This advantage will be continued till the doctor declares that the worker can get back to work.

2. Permanent Disability

Permanent disability implies that the accident has affected the earnings of the worker in the long term. It is further segregated into:

Permanent partial disability encompasses such factors as loss of fingers and toes and partial loss of hearing or sight. In the case of the employee, he or she can still work, although he or she can earn less.
Permanent Total Disability implies that the employee cannot work anymore and in any way. Such as blindness or paralysis. In this kind of situation, compensation is bigger and depends on the extent of the disability and the salary of the worker.

How Is Compensation Calculated Under A Workplace Policy?

Labor insurance policy is governed by reputable financial institutions like the TATA AIG, which has its own formulae to calculate the compensation policy. It is the age and monthly salary of the worker that determines the fatal accidents. In the non-fatal cases, the amount is pegged on the type and value of the injury.

Death Compensation: In case an accident occurs in a workplace and the employee loses his life, his family is compensated with 50 percent of monthly employee wages or 1,20,000-whichever is greater.
Total Permanent Disability: In case of total permanent disability, the workers are to get 60 percent of their monthly salaries or 120000 rupees, whichever is greater.
Partial Permanent Disability: Injuries as indicated in Schedule 1 of the Act receive compensation based on the impaired capacity to earn.
Temporary Disability: The employee is given half a month of 25 percent of his/her monthly salary, which can be extended up to five years.

The existence of an injury requires to be tested and proof by a qualified doctor, under which preparation, the nature and extent of the injury should be assessed or tested.

What Is The Procedure Of Filing A Claim Under A Labour Insurance Policy?

Inform the insurer: Make a written statement within two days following the event.
Aid in the investigation: A researcher will consider the assertion. Provide all the necessary information in doing that.
Collect the needed papers: Summon medical reports, hospital bills, and any other relevant information.
Fill in the Claim Form: This is the form via which you need to provide information related to the policy number, name of the insured, the name of the worker, and facts about the accident. Deliver it together with the obtained documentation within 15 days after discharge from the hospital or 30 days in case of death.
Claim Settlement: The insurer will examine the submitted paperwork. When it is accepted, the compensation will be given within the 30-day scope.

Conclusion

Accidents disrupt the lives of people and cause them to live in mental and financial distress. The policy of labor insurance is expected to save the workers and secure the family’s needs during emergencies. There should be proper conduct by the employers and adherence to the law.

Sometimes it is inevitable to have injuries, but what can be done in time and with energy? Let us make workplaces safer and provide support where it is most needed, after an accident.

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