Question

Why is Commerical automobile insurance so important for companies? What is Occupational Injury and Disease Insurance and why is it important to companies?

Answer 1

Importance of Commercial automobile insurance for companies:

Companies which require commercial vehicles, to make their business, are prone to high risk of losses due to damages to their ultimate assets, i.e. commercial vehicles and therefore to cover the risk, commercial automobile insurance is very important to them. The companies, that are utilizing trucks, vans and cars as the main source of income for their business bears high risk as the vehicles are always on the road and there may be instances where drivers can get into accidents with other vehicle, or the vehicle may be damaged. With commercial insurance, company remains protected from such unforeseen losses.

Commercial insurance of automobile may cover car liability, coverage for the employee who was driving the vehicle, medical bills, if someone gets hurt during the accident and any other damage. The company may choose appropriate policy as per the requirements of the business.

Occupational Injury:

It is provided to secure the employees working in the organization in a high risk environment. The coverage of this insurance is beard by the employer.In case, if during employment, the employee suffers from any occupational injury or gets inflicted by an occupational illness, occupational injury insurance will generate a legal right to compensation to the suffering employee. Some Acts makes it compulsory for specified categories of employers to take the occupational insurance coverage for all the employees working in the organization.

Importance: An employer is responsible for any legal obligation to an employee. If occupational injury coverage is taken, the risk get transferred to the insurance company. Occupational injury insurance covers lost wages, medical expenses and death benefits upto the policy limits. It secures employer from large unexpected outflows.

Disease Insurance: Disease insurance is also known as critical illness insurance. It is an insurance product, in which the insurance companies, contract to pay a predetermined lumpsum amount, to the policy holder, if the policy holder gets diagnosed with any one of the specific disease, which is mentioned in the list prescribed in the policy. The policy may be structured to pay out a regular income.

Importance: One of the reason, companies have been providing disease insurance to the employee is that, they recognize that the employees are worried of high out-of-pocket expenses with a high deductible plan. Unlike other health care benefits, workers generally bear the entire cost of critical disease plans. That makes it a money saver for companies as well as workers.