Statutory requirements for workers’ compensation

A company can purchase workers’ compensation insurance to safeguard itself against unforeseen financial situations. It addresses the risk of staff illness, accident, and death at work. However, it should be noted that while purchasing a worker compensation policy is not required, compensating injured employees is. Furthermore, many enterprises must purchase worker compensation as a guideline or contract with their customers with the help of a workers’ comp lawyer in Cedar Rapids

Statutory Requirements for Workers’ Compensation: 


The Workmen Compensation Act of 1923 applies to organizations with more than 20 employees. This statute is now known as the Employees Compensation Act of 1923. According to the Employees State Insurance Act, employers must register (ESI Act). All full-time employees, contract employees, or those hired to work in an office setting are eligible for insurance coverage.

The insurance program covers personnel engaged in:

  • The manufacturing sector
  • Factories 
  • Construction works
  • Clothing industry
  • Mines 
  • Industries, plantations, and other similar dangerous jobs.

The statute declares that in the event of an accident or death, every employee, including those who perform everyday work, is entitled to compensation from the employer. It includes mild and serious injuries that leave the person unable to perform their job.

Policy Coverage

Typically, compensation is provided in the event of death, short or long disability, or whole or partial disability. Workers’ compensation payouts are mostly for work-related incidents and fatalities. To optimize coverage, an employer might add premium policy extensions. The standard policy covers the liabilities listed below.

  • Any injury sustained unintentionally while at work.
  • Hospital costs, ambulance fees, and other medical costs related to work-related incidents.
  • Some of the illnesses listed in Part C of Schedule III of the Act also call for compensation from the employer if the illness develops during or as a result of employment.

Payment of Compensation

According to the Act, if a worker becomes disabled or passes away while on the job, their dependents are entitled to the compensation that the Workers Court determines is appropriate. The entire cost of worker compensation insurance is determined by the type of accident, the average monthly income, the worker’s dependents, and the worker’s age.


The least compensation that must be provided in case of death, short or long disability, or partial impairment is also specified in the Act. This coverage also covers a company’s obligation under the Indian Fatal Accident Act of 1855 and common law.

Leave a Reply

Back to top button