What are the Duties of the Employer Under Worker Compensation Insurance at the Time of Loss?

Employee injury at the workplace is a grievous situation that may occur at any time. When such a situation arises, the employer must perform certain duties and take charge. Here is what an employer must do:

Ethical Duties

• Provide First Aid- The foremost duty of the employer is to provide immediate medical assistance and first aid at the workplace. For example, if the employee injures himself while handling certain equipment, leading to minor cuts or wounds, the employer must ensure he gets first aid on the spot. It will help to contain the injury and prevent it from aggravating.

• Hospitalisation- If there is a workplace accident, leading to employee injury, it is the employer's responsibility under workers compensation duties to make sure that the employee is transported to the hospital for the required treatment. For instance, if the worker suffers a fracture after a fall, becomes unconscious or has difficulty in breathing, the employer must ensure he reaches the hospital on time for treatment and evaluation.

• Follow-Up on Recovery- While the employee is admitted to the hospital and receiving treatment, the employer must stay in touch with the doctors and receive updates on the treatment and recovery of the patient(employee). It shows the employer’s commitment to the well-being of their employee under all circumstances.

The employer must also stay in touch with the employee and find out about his recovery. Doing so leaves a positive impression on the employee, helps him recover faster and helps to build cohesive relationships

Legal And Statutory Duties

• Inform the Insurance Company- Another crucial duty is that the employer must inform the insurance company or the third-party administrator about the workplace accident. It is essential to inform the insurance provider within the time frame so the workers’ compensation claim can be registered. If the employer fails to inform the insurance company, or informs them after the stipulated time, the company may not accept the WC claim.

• Documentation- Another responsibility of the employer under workers' compensation duties is to document and record all details of the accident. It is essential to prepare the report as required by the insurance provider. For instance, the report must contain the date, time, location, nature of the injury, witnesses present at the spot, contributing factors to the accident and so on.
  It is very important to note down these details and submit them to the insurance company to ensure that the workmen's compensation claim is accepted and paid out to the employee.

• Support Legal Proceedings- In case the workplace accident results in a dispute or legal claim, the employer may get involved in a legal hassle. In such circumstances, it is the legal duty of the employer to attend the hearings, submit the required documents, provide clarifications and so on. For instance, if the claim amount is challenged or the liability is not clear, the matter may go to court, requiring the employer to do their part as mentioned above.

Also Read: How is Workmen’s Compensation Injury Settlement Calculated?

Business Duties

• Find out the Underlying Issue- The employer’s duty also includes assessing and inspecting the entire workplace after the accident. The employer must analyse the machinery, equipment and the workplace to eliminate any existing risks or safety loopholes.
  For example, if the employee suffered an injury operating a particular machinery, the employer must conduct a thorough inspection and find if any fault existed in the machinery, causing the unpleasant incident.

• Enhance Workplace Safety- It is also crucial that the employer takes all the necessary measures to enhance workplace safety. For instance, they may consider including additional safety measures, safety equipment, etc., in the workplace so that accidents may be prevented in the future.

The employer may improve the quality of the safety equipment, such as helmets, PPE kits, gloves, etc., to provide better protection to the employees and minimise injuries.

• Provide Additional Training- Another responsibility of the employer after a workplace accident is to provide the employees with additional training to navigate the workplace. They may also improve the safety protocols and ensure that all employees know and understand them well.

• Accommodate the Injured Worker- Being the owner of a business entity, the employer must try and accommodate the injured worker in their existing/reduced capacity. If the worker is still recovering, the employer may assign them workers' compensation light-duty work as per their capacity. They may also provide the returning worker with an adequate and comfortable workplace, reduced working hours, etc., to support their recovery.

Also Read: Types of Workmen’s Compensation Insurance

One aspect of an employer's duties under workers’ compensation insurance is the fulfilment of their obligations. However, the other aspect is the benefits that the injured workers receive from the employer's actions.

Here are some of the benefits that an employee receives when an employer performs their duties during a workplace accident.

1.Minimum Injury- If the employer performs their duty and provides first aid to the injured employee immediately after the accident, it can reduce the injury and prevent it from turning into a bigger one.

For example, if a worker suffers burns due to chemical or other substances at the workplace and receives immediate first aid, the severity of the burns can be drastically reduced.

2.Helps Faster Recovery- When the injured worker receives appropriate treatment and medical care at the hospital, it helps him to recover faster. The doctors can provide him with immediate assistance and treat his injury. At the hospital, the employee can rest and recover faster with appropriate care.

3.Emotional Support- Keeping track of the employee's recovery and connecting with him while he recovers gives the much-needed emotional support. When employers are involved in their employees’ recovery process, it not only makes them feel valued but also helps them to get past the trauma of injury and bounce back faster.

4.Enables them to Continue Earning- Employers may allot simpler and less strenuous tasks to injured workers or provide them with a comfortable work environment after injury. This helps to accommodate their current condition and allows them to continue earning and supporting their family even in reduced capacity. Thus, it fosters a feeling of independence.

5.Enhances their Loyalty- When an employer performs all the duties diligently at the time of an accident at the workplace, it instils loyalty among the workers. They feel valued and committed to the company. When they receive care and concern from the employer, it makes them loyal to the organisation and encourages them to put their best efforts to achieve company goals.

6.Life Saving- In many cases, a proactive measure from the employer saves the employee's life. For example, in a chemical factory, an employee inhales toxic fumes and collapses. The co-workers immediately use the oxygen cylinder and the employer arranges to transfer him to the hospital quickly. Since the employee received immediate medical help, there is a higher chance of his survival.

Also Read; Key Factors for Choosing Workmen’s Compensation Policy

1.Enhances the Company Reputation- When the employer fulfils their responsibilities during a workplace accident, it earns them respect in the eyes of the employees. It also spreads good word about the employer and organisation, which, in turn, earns them a good reputation in the industry.

2.Strengthens the Relationship with the Employees- An employer who fulfils his duties at the time of a workplace accident sends out a very strong message to the employees that they are valuable. It builds up the faith of the employees and helps to strengthen the relationship between the employer and the employees.

3.Helps the Organisation Achieve Success- When the employees are happy and feel cared for, they give their best to the organisation. They put in all the effort and go all the way to help the organisation achieve its goals. Thus, leading to organisational success.

4.Saves from Legal Hassles- In case of any negligence on the part of the employer, the employee or his dependents may sue him. Thus, when the employer performs his duties and takes all the necessary steps after an accident, he is nowhere at fault and is saved from getting into legal trouble.

Workplace accidents can be devastating and traumatising at the same time. Under such situations, the employer plays a crucial role in managing the situation and taking proactive measures.

However, when the employer performs his duties, such as rushing the injured employee to the hospital, following up on him, informing the insurance provider, etc., they go a long way in safeguarding the employees.

Similarly, investing in workers’ compensation insurance is a very crucial step an employer can take for employee benefits. With TATA AIG's workmen's compensation policy, you can ensure that your workers never have to suffer financially after a workplace accident. Our plans provide adequate and comprehensive coverage to the employees, ensuring they get their due compensation.

Our plans are customisable and designed to suit the varying needs of your business. With an affordable premium and high claim settlement ratio, our plans are among the most efficient ones.
We also offer various SME insurance policies to protect your business from unforeseen losses and help you fulfil your obligations proficiently. Purchasing our insurance plans is as easy as clicking a few buttons. Besides, we have a 24/7 customer support team ready to assist you at all times.

What are the benefits available under workmen's compensation insurance?

Under workmen’s compensation insurance, an employee is eligible for compensation under the following heads:

• Medical benefits
• Loss of wages
• Death benefits

Is it mandatory for the employer to perform their duties at the time of loss under the WC Policy?

Yes, an employer is required to perform their duties at the time of loss, such as providing first aid, reporting the incident, etc. These duties are explicitly outlined in the Workmen's Compensation Act, 1923. Non-performance of these duties can cause legal trouble for the employer.

How is workmen’s compensation calculated?

Workmen’s compensation is calculated on the basis of various factors that play a crucial role. The factors are as follows:

• State laws
• The kind of job the employee performs
• Size of the business
• The risk factors associated with the employee's role