The global work environment has increased the awareness for employee protection and need for safeguarding health. In order to provide health insurance to the employees and to protect the organizations from the losses, workmen compensation has been designed.
Workman compensation is an insurance provision for the employees as governed by the law. The basic principle of this insurance policy is that if an employee sustains any accidental injury or medical illness during period of employment, the insurance policy provides cover for the same. For any such event the organization will have to pay for the medical expenses as provided under the Workmen Compensation Act and other laws governing this situation.
Workmen compensation insurance makes provision for the insurance of an employee in case of accidents and similar other fatal incidents during the employment tenure. All employees must be registered under this scheme as per the regulations. There may be slight variations according to your national regulations and you need to be aware of the specific laws governing such conditions.
Generally there are common exclusions to this provision like injury due to accident or illnesses caused by war or similar other calamities.