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Why you Need to Invest in the Workman’s Compensation Insurance

The workman’s compensation insurance program, sometimes referred to as the workmen’s compensation program, is a type of insurance that offers financial protection to employees who are injured at the workplace or become ill as a result of their occupation. The Workmen’s Compensation Act of 2007, which sets forth the rights and obligations of employers and employees in respect of workplace injuries and illnesses, is the law that governs workers’ compensation insurance in Kenya.

In accordance with the Act, employers are required to purchase workers’ compensation insurance. This is to cover their employees for the risk of injuries and illnesses that may occur at their workplace.

As soon as an employee becomes unable to work due to injury or illness, their insurance provides financial support. This includes paying for their medical expenses and losing their wages during the period in which they cannot work.

According to the Act, employers are also required by law to report any injuries or illnesses that occur at work to the appropriate authorities. In addition, employers are required to provide their employees with information about their rights and entitlements under the Act.

As a vital protection for employees in Kenya, workers’ compensation insurance plays an instrumental role in ensuring that they are adequately compensated in the event of a workplace injury or illness. As a result, it is also regarded as an invaluable tool for employers. This is because it helps protect them from the risk of financial liability in the event of an accident or injury at work.

Worker’s compensation insurance has several advantages that make it a worthwhile investment in Kenya, including the following:

The following are some financial protection measures:

The purpose of workers’ compensation insurance is to provide financial protection to employees who have been injured at work or become ill during the course of their work. It may include payments for medical expenses and lost wages, which can assist employees in covering their expenses while they are unable to work due to an injury.

Legal protection:

In order to comply with the law, employers must insure their workers with workers’ compensation insurance. If they fail to do so, they can face fines and other legal penalties. The purchase of workers’ compensation insurance is one of the most effective ways to protect employers from legal repercussions if their employees become injured on the job.

Improved workplace safety:

Having workers’ compensation insurance can be an effective tool to encourage employers to prioritize workplace safety. This is because it will ensure that they are financially protected in the event of an accident on the job. So, employees will be able to enjoy a more secure and healthier working environment.

Increased productivity:

In order to be productive and motivated at work, employees may be more likely to feel that they are being treated fairly and are protected in the event of a workplace injury or illness when they feel as though they are treated fairly and protected. There are many benefits to investing in workers’ compensation insurance, including the creation of a positive work environment and increasing productivity in the workplace.

Better employee relations:

The provision of workers’ compensation insurance can demonstrate to employees that their employer values their well-being and is committed to providing them with a safe and healthy working environment by providing workers’ compensation insurance. There are many benefits that can be derived from this practice, including a better work environment, a sense of trust, and greater loyalty among employees.

It is pertinent to note that workers’ compensation insurance in Kenya has some limitations:

A limited range of coverage is available:

As a general rule, workers’ compensation insurance only covers injuries or illnesses that are directly related to an employee’s job and are compensated by the insurer. This insurance may not cover accidents or illnesses that occur outside the workplace or that don’t have a direct connection to work or those that occur outside the office.


Certain injuries and illnesses may not be covered by workers’ compensation insurance policies. If, for instance, injuries or illnesses are caused by the intentional actions or misconduct of an employee, those injuries or illnesses may not be covered by the employee’s insurance.

Limited benefits:

It is critical to realize that the benefits provided by a workers’ compensation insurance policy may be limited in scope. This means that they may not be able to fully cover the costs that may be associated with a workplace injury or illness. Depending on the policy, an employee may only be covered for part of their lost wages. In addition, they may be allowed to claim a limited amount of medical expenses, for example.

The claims process can be complicated for a variety of reasons.

Typically, the process for making a claim under a workers’ compensation policy can be complex. This is because it may require the employee to provide extensive documentation and evidence in order to prove their claim under the policy. The process can take a lot of time and may be frustrating for employees who have to deal with it.

Limited legal recourse:

Some employees may not be satisfied with the benefits offered to them under a workers’ compensation insurance policy or may feel that their employer is to blame for their injury or illness if they are dissatisfied with the benefits provided if they are dissatisfied with the policy. While the Workmen’s Compensation Act of 2007 provides employees with a number of legal remedies, the extent of such remedies may be limited. Therefore, employees may have difficulty pursuing legal action against their employer under this law.

The following are some of the ways in which this insurance protects employers:

There are a number of ways in which workers’ compensation insurance in Kenya helps employers to protect themselves:

Protecting your financial interests:

Workers’ compensation insurance can help to cover the costs associated with workplace injuries and illnesses, including the payment of medical expenses and lost wages. This is in the event of such an injury or illness occurring in the workplace. In the event that workers are injured or a workplace accident occurs, this can help employers to protect themselves from financial liability.

Legal protection:

It is a legal requirement that employers have workers’ compensation insurance. If an employer fails to obtain this coverage, they may be subject to fines or other legal penalties. In the event that employees become injured at work or become sick at work, employers can protect themselves from legal liability by obtaining workers’ compensation insurance.

Improved workplace safety:

As a result of having employee’s compensation insurance, employers are more likely to prioritize workplace safety. This is because it provides them with the security of knowing they are financially protected in the event of a workplace accident. Creating a safer and healthier working environment for employees can help to reduce the risk of injuries and illnesses occurring at work. This will also help to make the workplace a healthier place to work.

Enhanced reputation:

An employer who provides workers’ compensation insurance is demonstrating to their employees, as well as to the general public, that they care about their employees’ well-being and that they are committed to providing a safe and healthy work environment for their employees. In this way, employers can enhance their reputation within the community and foster a favorable image within the community through this initiative.

Final Thoughts:

Investing in the Workman’s Compensation insurance is certainly a wise investment that any Kenyan employer should make. According to reports by the Association of Kenyan Insurers, there is a steady uptake of this insurance policy, and this is definitely the way to go.

Do you need to protect your workmen and your financial assets by investing in the Workmen’s Compensation Insurance. Blossom Insurance has a team of professionals who will guide you, and provide your workforce with the best insurance cover and ensure their safety and productivity. Talk to us today to get started!


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