Accident insurance is a benefit that can be offered to employees in manufacturing industries. This policy covers any injuries caused by accidents, aiding employees in returning to work as efficiently and as quickly as possible after an accident at the workplace.
Risks Manufacturing Workers Faced
The manufacturing industry is a foundation of economic development around the world. These industries convert raw materials into processed and final finished goods. These raw materials may be harmful or dangerous to workers. Exposure to these materials on a regular basis can harm employees.
Height Hazards
In some cases, workers in manufacturing industries have to work in really high places with fewer safety precautions. Accidentally falling from these heights can result in injuries.
Machinery Hazards
Manufacturing industries use heavy tools and machinery extensively, which threatens the safety of the workers operating them and those around them. These machines require extensive care to operate to prevent injuries. Heavy cauldrons, boilers, and furnaces are also a threat to the workers operating them. All of these are essential contributors to workplace accidents.
Material Hazards
Since most industries handle raw materials on a large scale, the heavy weight and large volume of materials around the workplace can be a potential danger to the employees who handle them as part of their daily routine.
Some of the raw materials are also toxic and harmful if exposed. Workers who interact with these materials on a regular basis are more prone to accidents related to these hazardous chemicals.
A recent report shows an event that took place in the manufacturing industry. A textile factory worker was opening the shutter door using the pulley when it broke off and fell 30 feet on top of the worker. He was taken to the hospital, where he was diagnosed as having a skull fracture.
Another recent event took place in the textile manufacturing industry. A worker was opening the shutter door using the pulley when the pulley block dislodged and fell 30 feet on top of the factory worker. He suffered a fractured skull.
Benefits of Accident Insurance for Manufacturing Workers
Medical Expenses
As mentioned earlier, accident insurance can compensate for the losses to the worker in any accident-related injuries sustained at the factory. In case of a serious injury, where the patient needs hospitalization, the insurance plan can cover hospital stay costs and initial treatment charges.
Income Replacement
The accident insurance plan can also compensate for the salary lost if the worker is unable to resume his work at the factory for an extended period due to the injuries he sustained.
Death Benefits
And in the unfortunate case that the injuries sustained were fatal and the worker has passed away, the plan will cover the funeral charges, along with, in some cases, compensating the employee’s family for a brief period.
Disability Benefits
In some cases, the insurance company also offers a benefit if the patient has a temporary or permanent disability.
Types of Accident Insurance Policies
At the moment, there are a few different policies when it comes to accident insurance;
Group Accident Insurance
A version of accident insurance, this type covers a group of people or organization rather than a single individual. It is offered to employers looking to cover the treatment for accident-related injuries, hospitalization, and funeral charges for a group of people working under the organization since it is a more cost-effective plan than an individual plan.
Voluntary Accident Insurance
This type of insurance is for the employee to enroll for on his own accord. It is not offered by any organization; rather, the individual signs up for it on his own accord, with the charges being deducted from his paycheck. This plan still offers basic benefits such as medical coverage and hospitalization, including deaths caused by fatal injuries.
In summary, either of these plans offers the same benefits. The only differences are the number of people applicable, whether it is a single person or a group, and whether the employee chooses to enroll using his own salary or the employer provides it as a separate benefit to attract potential employees.
What Employers Need to Know
Workers’ Compensation Laws
Employers should make sure that their workplace is acclimatized to state-specific workers’ compensation laws, which may or may not require employees to be supported by accident insurance.
OSHA Regulations
Pakistan has several regulations for occupational safety and health, including:
- Pakistan Occupational Health and Safety Act 2018
This act aims to:
- Protect the health and safety of workers and workplaces
- Promote fair and effective workplace representation
- Encourage unions and employer organizations to improve health and safety practices
- Provide advice, information, education, and training on work health and safety
- The Punjab Occupational Safety and Health Act
- The Sindh Occupational Safety and Health Act
Coverage Limits
Before providing the workers with this facility, the employer should take into account, the job and its included dangers. The underlying risks should be considered to make sure if the insurance plan will be valid and suitable on the job.
Claims Process
The employer should also make sure that the insurance claims are not left unprocessed. The employees should also be educated regarding the process of submitting claims to the insurance provider. Not only that but their claims should also be processed and forwarded to the company. The employer should make sure that these claims are being monitored Taking care of these instructions will ensure a positive relationship between employer and employee.
Conclusion
Accident insurance is a policy often offered to employees in the manufacturing industry since their safety is compromised at their workplace. They cover accidental injuries and death, and can apply to an individual or a group of people at the same workplace.
The employers should keep the workers in touch about implementing or updating new policies and should also ensure that the workers are being educated about the processes of submitting claims, along with making sure that these claims are being processed and sent to the service provider.
Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.