Labour Insurance: Securing Work, Protecting Workforce

Work-related accidents can result in serious injuries for your labourers. This can affect their ability to work temporarily or permanently and lead to a loss of income.

With a labour insurance policy, you can protect your workers by covering their medical expenses and compensating them for lost wages during recovery. It also helps you meet legal requirements and enhances your reputation as a responsible employer.

Under the Workmen’s Compensation Act of 1923, employers in labour-intensive industries and others engaging workers in technical or mechanical job roles, as listed under Schedule II, must provide financial compensation to their workers for work-related accidents.

Purchasing a labour insurance policy can be highly relevant in the following scenarios:

• Businesses that involve labour-intensive tasks like manufacturing units, factories and shipping companies.
• Businesses that involve high-risk operations such as electricity generation, chemical manufacturing, or mining.
• Businesses that employ a large workforce, such as large retailers, logistics companies and automotive repair.
• Businesses that hire contractual workers for building construction, road maintenance or infrastructure development.

Please Note: Employers can cover their workers under either labour insurance or Employee State Insurance (ESI), but the same claim cannot be filed under both policies.

Also Read: ESI or WC, Which Is Applicable to My Organisation?

1. Go to the Buy Option: At the top of this page, find the option to select the trade category and proceed to purchase labour insurance.

2. Choose Trade Category: Choose a suitable option under “Select Trade Category” and click on “Get Plan”.

3. Enter the Required Details: Please provide your PIN code, worker categories, the number of workers in each category, and their average monthly wages.

4. Check Premium Quote: Check your labour insurance premium based on the selected coverage. Adjust your coverage to view updated quotes instantly.

5. Pay the Premium: Proceed to pay the premium using a suitable payment method and complete your labour insurance application.

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

• Expert guidance - We help you understand your workplace risks and help you choose the right labour insurance policy.
• Easy online purchase - Buy labour insurance online quickly and easily in just a few simple steps.
• Coverage for various sectors - Protection for high-risk business sectors like builders, chemical workers, metal workers, electrical engineers and more.
• Customised policy options - Choose a policy that fits your unique needs and enhance your protection with add-ons.
• Prompt claim settlement - Our dedicated support team ensures fast claim processing and worker compensation.

Please Note: This is a general list of exclusions. Please review the policy document carefully for complete details before purchasing the policy.

A standard labour insurance policy typically covers death and disability resulting from work-related accidents. However, if your business has specific needs, you can also choose to add optional add-on covers.

• Medical Extension Cover - This provides up to ₹1 lakh for medical expenses. It can provide additional financial support to the workers, especially when an employee is hospitalised for more than one day.
• Occupational Diseases Cover - It covers diseases or illnesses that develop from working in harmful work conditions for a long time. This can include respiratory issues in factories, skin problems from working with chemicals, etc.
• Terrorism Cover - This offers protection against violent incidents triggered by workers, like during union protests. It is suitable for businesses with a large workforce where labour-related issues may arise more frequently.

• Helps In Creating A Safer Work Culture:
  Labour insurance encourages employers to improve workplace safety by implementing better training practices and preventive measures to prevent accidents.
  This is especially important in industries such as chemical manufacturing and automotive repair, where even the smallest safety concerns can lead to serious accidents. Proper training and safety measures minimise these risks.

• Building Trust and Retention:
  Labour insurance makes workers feel more valued at their workplace. It builds trust, encourages responsible behaviour, and promotes long-term relationships.
  In industries like warehousing and logistics, where workers handle heavy loads, the risk of accidents is higher. Labour insurance coverage for your workers enhances job satisfaction and strengthens their commitment to your organisation.

1.Inform Us About the Incident: Submit a written notification letter to TATA AIG within 2 days from the date of the incident.

2.Cooperate with the Investigation: An investigating officer will be sent to your workplace to verify the claim. Cooperate with the official by providing the necessary information.

3.Collect Evidence and Documents: Collect all the necessary documents, such as medical reports, disability reports or the worker’s death certificate, along with any evidence related to the incident.

4.Submit the Claim Form and Documents: Submit the completed claim form with the policy number, name of the insured, the injured worker’s name, accident details and required documents. This should be done within 15 days of the worker’s discharge from the hospital and 30 days in case of accidental death.

5.Claim Approval and Settlement: We will review your claim form and supporting documents for processing. Once your claim is approved, we will release the payout. Claims approvals can take up to 30 days.

Also Read: The Most Common Workers' Compensation Claims