What is Occupational Accident Insurance and its Benefits – Have you ever heard about a worker who had an accident at work? Or maybe you’ve seen it in person? The work environment is not completely free from risk.
Therefore, the company will provide work accident insurance to its employees. This serves to minimize losses if unwanted things happen. So, what is work accident insurance? And what are the benefits?
What is Work Accident Insurance
Work accident insurance is one type of insurance that guarantees protection for the safety of workers or employees against the risk of work accidents. As we know, the location of the workplace is not always in a safe condition.
For example, companies engaged in the construction of buildings, factories, and so on. Thus, the risk of an accident cannot be avoided. Work accident insurance provides benefits in the form of sum assured and medical expenses for employees who have an accident at work.
In addition to these risks, work accident insurance is the obligation of all companies to their employees. This is regulated in PP No. 44 of 2015, concerning the implementation of work accident insurance programs and death benefits which were later amended by PP No. 82 of 2019.
The JKK or work accident insurance includes compensation benefits if the employee dies due to a work accident and medical facilities for treatment.
What risks must be covered by work accident insurance? Here’s the answer.
Risk of Death
The risk of death of an employee as a result of a work accident.
Fixed Disability Risk
Serious work accidents can cause permanent disability to employees. Thus, employees need the benefits of the insurance.
Non-permanent Disability Risk
In addition to permanent disability, work accidents can also cause temporary disability. Employees with temporary disability are also entitled to work accident insurance benefits.
Risk The cost of medical or hospital care or treatment.
Another risk that must be borne is medical expenses for employees who have accidents at work.
Work Accident Insurance Benefits
Medical and Treatment Cost Coverage
The transfer of risk will result in premium payments so that customers can experience the benefits of insurance. The same is true for work accident insurance. The company will pay for work accident insurance as a form of JKK as stipulated in a government regulation.
The benefits that can be felt by employees are the coverage of medical expenses. Thus, when an employee has a work accident, the insurance company in collaboration with the company will cover the employee’s medical expenses in accordance with the work accident insurance policy.
The next benefit is the provision of compensation money. The compensation is given to the families of employees who died due to work accidents. The amount of compensation depends on the insurance policy purchased by the company for its employees.
For example, a building construction employee dies when a building material falls suddenly. So, the insurance company will provide compensation to his family.
Feeling Safe When Working
With the transfer of risk, humans tend to feel safe. Because his anxiety about the risk of accidents at work is reduced.
When an employee finds out that the company provides him with work accident insurance, he will feel safe while at the work site. In addition, employees will be more enthusiastic in carrying out their work.
How are you doing, very interesting right? It’s worth considering.