Insurance is about compensating the loss one has incurred due to the occurrence of any event. Many types of insurance policies are available in the market which insures one thing or the other. An amazing product is the employer’s liability policy.
Employers Liability Policy enables employers to transfer their risk to an insurance company in exchange of a premium. The risks covered are work related injuries, medical expenses, etc. The risks covered differ from insurer to insurer based on the nature of job undertaken by the employees of that company.
The Employer’s Liability Act (Mandatory Insurance) Act, 1969 has made it compulsory for employers or organizations to obtain cover for a certain minimum amount that may be required to pay when such a claim arise.
This policy not only covers for the claim arising out of death or disease of an employee, it may also cover for various diseases that any family member of the employee may suffer from. So, it is a statutory requirement that every employee must fulfill.
The premium required to be paid depends on the tariff of the government and also on the working condition of that company. It should be noted that there are some exemptions that are not covered in this policy.
