Why is mandatory work insurance useful?
An employee working in a reputed institution must surely posses a policy on mandatory work insurance. Many instances can happen that can result in the accident of the employee ending up in disability or taking months of leave without pay. Hence, in such cases, the need for mandatory work insurance arises that aids the employee to carry out their medical expenses. Presently, the law is being made compulsory in every state. Every business, either big or small has to provide the monetary benefits to the employee in case of an accident at the workplace.
The history:
Before the twentieth century, there were no such legalizations and the workers who were injured could not get the benefits. The company never took responsibility of the medical aid and as per the tort system the workers also had to experience demoralizing financial penalties. Thus, the situation of the workers worsened which ultimately led them to take legal actions against the employers.
The origin of mandatory work insurance:
However, with the beginning of 1911, some of the states like Wisconsin tried to reach a compromise in the situation at the workplace and thus introduced a system that proved beneficial to both the employer as well as the employees. The employees who were injured at the workplace received fair and quick medical treatment along with financial compensations. The mandatory work insurance system also drew certain limits to the medical aid and the compensations so that the costs were affordable by the company.
The developments of the system:
The advantages associated with the mandatory work insurance may include death benefits, lost wages, medical expenses and occupational rehabilitation. The failure to carry out such a system would lead them to pay the whole amount out of their pockets in addition to the penalties imposed by the state law on these workers.
The workings of the insurance:
In order to get benefitted from the mandatory work insurance (we Danes call it Præmiesatser på lovpligtig arbejsskadeforsikring ), the employee has to pay a certain amount of premium on a monthly basis and the amount of premium differs for various companies. The company that deals with the labor force or has a number of people working under the institution has higher premiums than those that employ candidates for a white collar job. The risks associated with the white collar job are lower and hence, the cost derived from such premiums also varies and the laborers get a greater profit.
The government:
The government however, encourages the business firms to get their employees insured in order to provide financial help to the workers and help their families from getting bankrupt. Moreover, such a system is beneficial to the firm too since the amount invested in such insurance by the company is only half of the total. Moreover, the employee can also take assistance from the lawyers if they feel that they have not received enough benefits.
Thus, the mandatory work insurance has helped many of the workers overcome from their difficulties that led to poverty. It has also provided helpful to the family members.
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