Who Is Eligible For Workmen Compensation Act?

Workers Compensation Act

Workers compensation is a program that provides temporary financial assistance to workers who are injured or become ill on the job. There are many different types of programs under the workers compensation umbrella, but the most common is the first-party program. In this program, a worker is eligible for benefits if he or she receives medical care due to an accident on the job.

Many employers have a group health insurance plan that covers the cost of the workers compensation program. In some cases, the employer will pay the premium for the program. In other cases, the employee pays for his or her portion of the premium directly. The amount of the premium depends on the size of the employer, the number of employees, and the type of business.

The workers compensation program pays for the medical expenses of the injured worker. The employer also pays for some of the lost wages and other costs associated with the injury. The program covers the injured worker for three to six months after the accident. After that time, the worker must file a claim with the state workers compensation agency to receive further payments.

Workers compensation laws are governed by federal and state legislation. The Federal Government passed the Fair Labor Standards Act in 1938, and the Occupational Safety and Health Act of 1970. State governments then enacted additional labor law, but these statutes generally mirror the federal law. Workers compensation laws are similar across the country, but some states have more generous laws than others.

State-by-state statistics show the average annual cost of workers compensation is $7,541, and the total cost of benefits paid per claimant is $3,039. The national average is approximately $2,000. The average cost of a workers compensation claim is about $10,000.

Workers compensation benefits include:

• Temporary disability benefits to help the injured worker while he or she recovers. These benefits are usually equal to 60 percent of the injured worker’s monthly earnings. The benefit ends after three to six months.

• Partial disability benefits to help the worker resume his or her normal activities. These benefits are usually equal to 50 percent of the worker’s pre-injury wage. The benefit continues until the worker’s medical condition improves to the point that the worker can return to work.

• Permanent partial disability benefits to help the worker compensate for a permanent injury. These benefits are usually equal to 65 percent of the worker’s average monthly wage. The benefit continues for life, as long as the worker remains disabled.

• Death benefits to help the family of the deceased worker. The benefit is equal to 75 percent of the worker’s average monthly wage.

There are four types of workers compensation programs:

• First-party coverage. The employer purchases the program for the company. The employer pays the premium and pays for the benefits.

• Third-party coverage. The employer has a contract with a third-party provider to administer the program. The provider manages the claims and pays for the benefits.

• Self-insured programs. The employer buys insurance from a private insurer. The employer pays the premium and pays for the benefits.

• State-sponsored programs. The state government runs the program. The state handles the claims and pays for the benefits.

The cost of the workers compensation program depends on the employer and the type of business. Most small businesses self-insure. Larger companies often buy group health insurance. In some cases, the employer will pay the premium for the program. In other cases, the employee pays the premium directly.

The amount of the premium depends on the size of the employer, the number of employees, and the type of business. The average cost of workers compensation is about $7,500 per year.