How Workers Are Compensated For Temporary Disability At Work?

Workplace accidents or injuries are common, especially for those who are working in intensive labour or manual work. These accidents or injuries can result in permanent or temporary disability, death, or other severe consequences for workers, which brings additional financial implications for employers.

To safeguard themselves from such financial burdens, employers prefer to invest in workmen's or labour insurance plans. Under the coverage, injured employees receive financial compensation based on the severity of injury.

In this article, we will understand how workers are compensated for temporary disability under the WC policy.

Understanding Temporary Disability Benefit in Labour Insurance

AA temporary disability in a labour insurance policy refers to a situation where an employee is temporarily unable to perform their job responsibilities due to a work-related injury or accident. provides compensation to support the worker financially while they recover.

Temporary disability is generally classified into two categories: partial disability, where the employee can perform limited work but not at full capacity. And total disability, where the employee is completely unable to work for a temporary period. In both cases, the WC policy provides compensation to support the worker financially while they recover.

Eligibility for Temporary Disability Benefits Under WC Policy

The labour insurance policy offers compensation for temporary disability. However, workers must meet the eligibility criteria to receive the compensation.

• A temporary disability or injury should be directly related to the employee's workplace environment or work duties.
• Injuries or illnesses resulting from workplace accidents can prevent employees from performing their duties to full capacity in the workplace.
• The injured employee must report the illness or injury to the employer within the stipulated timeframe.
• Employees must also provide medical reports and prescriptions from a qualified medical professional.

Temporary Disability Compensation Under WC Policy

Compensation for temporary disability under a workmen's compensation (WC) policy is determined based on the severity and nature of the injury. Below are the compensation criteria:

• In the event of temporary disability resulting from a work-related accident or illness, employees are entitled to receive 25% of their monthly wage every 15 days for the duration of the disability.
• A compensation amount will only be granted to the employee if they have been disabled for a continuous period of more than three days.
• The maximum duration for the compensation for temporary disability benefits under the WC policy is restricted to 5 years. 

Example of Temporary Disability Under WC Policy

Let us understand the temporary disability under the labour or workmen's compensation policy with the help of an example. Rahul works as a warehouse manager in the ABC company and earns ₹50,000 per month. One day at work, he got injured while working. After a medical evaluation, it is confirmed that he has a temporary disability.

Rahul’s employer has invested in the labour insurance plan. As per the plan, he is eligible to receive a temporary disability benefit of ₹12,500 every two weeks for the duration of his disability.

Scenarios When Employers Are Not Liable for Compensation

There are some cases when injured employees do not receive compensation under the WC policy. These conditions are:

• If the temporary disability is less than 3 days, employers are not liable to pay compensation.
• Any kind of injury or accident that leads to temporary disability under the influence of drugs or alcohol is not liable for compensation.
• Any work-related accident or injury that is classified under Part C of the Workmen's Compensation Act, 1923, is not liable for compensation.
• Employees who are not considered workers under the Workmen's Compensation Act, 1923, are not liable for compensation.

Secure Your Workforce with TATA AIG Labour Insurance Plan

Understanding the temporary disability benefit under a labour insurance plan is essential for businesses aiming to protect both their employees and operations. It can help employers determine benefits, eligibility and legal obligations in the event of a workplace accident.

Furthermore, having a comprehensive policy like TATA AIG’s labour insurance plan ensures timely support for affected workers while also reducing financial and legal risk for the employer. It is a proactive step toward building a safer, more resilient workforce.

With their smooth claim settlement process, 24*7 customer support and more, businesses can get maximum benefit in the hour of need. Get your workforce secure with TATA AIG’s affordable and customisable WC policy.