Question

Explain the benefits of workers' compensation. Who is required to carry this type of insurance?

Explain what makes the acceptance of risk possible for insurance companies.

Answer 1

This is the benefit provided by employer to its employees in case of any work-related injuries, disability, etc.

Required benefits are as below:

#) this is the protection against losses, which helps a lot to employees or their families.

#) since this is an insurance policy, it reduces burden on the employer.

#) if there is workers’ compensation benefit then employees should not hesitate to handle risky jobs. In absence of this, getting employees’ motivation on work is very difficult.

Who?

Employers should carry this insurance for their employees.

What makes?

Only the employment-related injury or disability or death should be covered under the insurance. Therefore, the insurance companies should not entertain any sort of personal risk.

Example: suppose an employee is severely injured in a road accident while he was in a public vehicle and was in official job. It falls under employment-category and he should get workers’ compensation benefits. But if got injured while travelling for any personal purpose, the workers’ compensation to him is not to be applied.