Workmen’s compensation act doesn’t cover the accident under the common law or any kind of injury that has occurred outside the scope of the definition of work and many other factors. Workmen’s compensation act is an act designed by the Government of India to provide compensation to certain classes of workers due to an injury or illness at the workplace or during the course of employment. The act also defines the legal liability of the employer in case of injury of an employee at the workplace or during the course of employment. The Workmen compensation act was introduced in the year 1922 and came into force in the year 1923. The act provides the compensation limits in case of death or disability of the worker at the workplace or during the course of employment.
The compensation is calculated on the basis of the wages multiplied by a factor for the death and disability of the workers. The multiplication factor would be high for younger age and would decrease with the increase in age of the worker. Workmen compensation policy https://www.ethika.co.in/workmen-compensation-policy/ also covers the medical expenses arising out of an accident or disease or illness occured at the workplace or during the course of employment. Below are the list of things that are not covered under the Workmen compensation act,1923:-
- The liability assumed by the employer by an agreement with any of the workers is not covered under the act.
- The act doesn’t cover the liability arising out of the injury or accident caused to the employee due to consumption of liquor or drugs.
- Injuries caused due to war or war-like situations are not covered under the act. The act also does not cover invasion, insurrection related injuries resulting in death or disablement or hospitalization of the workmen.
- Employees under contract are not covered unless they are declared or insured.
- The act also does not cover the liability of the employer in case of injury of the employee at any other place other than that defined under the meaning of workplace.
- Workplace definition is mentioned in the act and any injury resulting from other than workplace and at a time other than the course of employment is not covered under the policy.
Workmen compensation policy is designed as per the workmen compensation act and the terms and contusion of the policy would be same as that of the act. It has been made mandatory to purchase a workmen compensation policy in India if a company has more than 20 employees coming under the definition of workmen as defined in the workmen compensation act. Workmen compensation policy’s premium is calculated on the basis of the wages of the employees as well as the occupation of the employees. There are certain occupations which are high risky such as employees engaged in mining, chemical industries which would attract high premium when compared to other occupation which have low to moderate risk. The workmen compensation act would be enforced by the labor commissioner.