Employee’s compensation is a modern-day business need that provides coverage to risks of employees that arise due to work-related illness or injury. This type of business insurance is mandatory for employers involved in various sectors such as construction, transportation, etc.
While it’s essential to buy a Employee’s compensation insurance after comparing quotes and understanding the policy’s terms and conditions, it’s equally essential to understand how compensation gets settled.
How Settlement of Workmen’s Compensation Insurance Works?
Before coming to the settlement part, it’s vital to understand how to initiate the claim with insurers. Communication is the key, and being the employer, you need to file the claim with your insurer.
However, before that, you must get your employee to do the paperwork and the related documentation stating the circumstances of the injury. Also, it’s essential to intimate the claims with the insurer at the earliest to make the settlement process easy and convenient. Make sure to provide all the required documents at the earliest for smooth settlement of claims.
Upon verifying all the paperwork and the documentation, the insurance company decides to approve or deny the claim.
Settlement of Claim Amount
ICICI Lombard Employee Compensation Policy claims are paid as per the provisions of Employee’s compensation Act, 1923. There are different compensation structure for different type of disability. For more details, please refer to Employee’s compensation Act, 1923
The Final Word
Employer needs to intimate the claims with the insurer at the earliest. Provide all the required documents. Claims will be settled as per the Employee’s compensation Act, 1923 at the earliest.