Common Mistakes Employers Make When Filing Workers’ Compensation Claims

Claims under workers’ compensation insurance are a crucial process. With its legal and statutory processes, even a small mistake can slow down the claims process or might also result in denial. While it is a common misconception that the insurer will pay for every claim made, the settlement of the claim largely depends on the employer's reports, documentation and prompt process.

Here are a few mistakes that are mostly commonly made by insureds that might lead to a claim denial.

Mistakes to Avoid When Filing Workers’ Compensation Claims

Delaying Claim Reporting 

Delaying the reporting of incidents is the most common mistake made when filing a claim under this labour insurance policy. Some employers wait for the injuries to heal or the situation to settle down.

However, this delay gives rise to gaps, missing medical reports and confusion around the case of injury. Insurers expect incidents to be reported on time, ideally within hours. Prompt incident reporting ensures that the documentation is appropriate and timelines are clear.

Poor Documentation

Workers’ compensation insurance is a statutory requirement and filing claims under the policy requires fulfilling all the legal requirements. With missing or incorrect documentation, your claim might be rejected. Here is a list of documents that can support your claim:

• Salary records
• Medical records
• Hospital bills
• Employment evidence
• Witness statement
• Copy of FIR (in some cases)

Not Following Safety Protocols

While having workers’ compensation insurance is a legal requirement for the employer, maintaining safety protocols is also a legal mandate. If safety training, PPE usage and basic safety protocols are not followed, it reflects negligence. Such negligence is a reason for rising accidents as well as a complicated claims process. Insurers always assess safety culture before approving payouts.

Not Maintaining Wage Records

Compensation under the WC is highly based on wages. So, if actual wage records are missing or there is a discrepancy in the wages actually paid and mentioned on record, claim compensation becomes difficult. Employers are expected to maintain formal and traceable salary data, especially for workers or contract labourers.

Misclassifying Employees

Sometimes, companies classify workers incorrectly, showing field workers as admin staff or listing skilled labour as unskilled. Incorrect classification creates confusion during claims and can even cause partial claim rejection. Worker classification must match the actual job role and risk category.

Lack of Training on Reporting Protocols

Supervisors, site heads and shift managers often are unaware of how to respond immediately after a workplace accident. Internal teams must be trained on.

• First steps to take
• Whom to inform
• How to document the vent
• What medical documents to collect

A minor delay in the early stage can create a significant delay in the later stages.

TATA AIG Ensures Smoother WC Claim Settlements

While a strong workers’ compensation insurance policy is paramount, employers must also be mindful when selecting the insurer for the policy. They must choose the right insurer who understands technical documentation, legal calculations and sector-specific claim complexities.

TATA AIG can support companies with structured guidelines, experienced claims handling teams and better claim coordination. With their diverse labour insurance plans and consistent guidance, employers can avoid mistakes and leverage smoother and faster closure of claims under the Workers’ Compensation insurance.