Kathmandu. A single small accident in the workplace can change an employee’s life and cause a huge financial burden for the employer or businessman. Similarly, Employee Compensation Insurance has become an essential safeguard for every employer to avoid future and legal liability.
Workers’ Compensation Insurance is also known as Workers’ Compensation Insurance. It provides financial protection in case of accidents, injuries, disability or death that occur during or in the course of employment. Under this insurance plan, instead of paying a large amount of compensation from the employer’s pocket, the insurance company pays the eligible compensation amount as per the terms of the insurance.
The Labour Act, 2074 BS has mandated social security and workplace security of workers. As per the law, the employer is liable to pay a hefty amount of compensation and medical expenses in case of an accident at the workplace or the death or disability of a worker in the course of work. Accident insurance of at least Rs 7 lakh. In such a situation, this insurance is the safest way for Nepali businessmen to fulfill their legal obligations.
Who needs this insurance?
Most businessmen are under the illusion that workplace accidents only happen in industries or factories. However, accidents can happen in any area. This is especially necessary for construction companies and engineering firms, manufacturing industries and factories, hotels, restaurants and hospitals, transportation, logistics and delivery services, banks, financial institutions, IT companies and educational institutions, and small, medium and start-up companies.
Whether the company has 5 employees or 5,000 employees, the risk of workplace is always there. This includes all risks such as falling in the office, electrocution, mechanical accident, or road accident while out of work.
What are the risks of TAG_OPEN_strong_22 insurance?
Workers’ compensation insurance covers the risk of accidental workplace injury and medical expenses, temporary or permanent total disability, permanent partial disability, death due to workplace accidents, occupational illnesses, and legal liability to the employer. However, insurance claims are not allowed in cases of accidents that occur outside of working hours or due to personal reasons, self-inflicted injuries and accidents caused by the influence of alcohol or drugs.
This insurance can save you from a sudden financial burden. The company’s cash flow is protected and free from legal hassles. Employees gain confidence in their safety. Ensuring a safe workplace increases the efficiency and productivity of employees.
Because small companies do not have enough contingency funds, they are more vulnerable to accidents and financial problems. Security measures reduce the risk. However, it cannot be completely eradicated. Health insurance covers only medical expenses but does not cover legal compensation for disability or death after an accident. For this, you need employee compensation insurance.
Protect your business by choosing the right insurance plan today to ensure that a single workplace accident doesn’t become a disaster for your business.
