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What is Workmen's Compensation?

The Workmen’s Compensation Insurance policy covers the legal liability of the employers under the Workmen’s Compensation Act 1923 and Fatal Accident Act 1855. Despite the preventive measures and safety precautions taken, accidents at your workplace are inevitable. The Workmen’s Compensation policy enables the employer to pay the compensation to the employees or for their family in case of death or bodily injury (permanent partial disablement / permanent total disablement / temporary disablement) caused due to injury and accident at workplace (including certain occupational disease) arising out of and in the course of employment. This policy provides coverage for medical expenditure, occupational disease, compressed air disease and terrorism.

Who should buy Workmen’s Compensation Insurance?

Policy is required by all manufacturing/trading/servicing setups for all floor workers and office staff as well. Most of the contractors’/Sub contractors stands benefited by this policy. Policy can be taken by Individual/Public or Private companies/ Partnership firms or by any of business/Trading entity operating in the Country.



Why should you buy Workmen’s Compensation Insurance?

The Workmen’s Compensation policy provides payment for legal compensation to Employees or their dependants in case of injury and accident of the employees at workplace (including certain occupational disease) arising out of and in the course of employment and resulting in disablement or death.

What is Included in Workmen’s Compensation Insurance?

Basic covers include Accidental death, Permanent total or Partial Disability and Temporary total disability. Add on covers include Medical Extension, Compressed Air Disease, Occupational Disease, Terrorism and Sub Contractor Coverage

Benefits

Workmen’s Compensation Policy

  •   Terrorism Coverage
  •   Hassle-free and convenient buying journey in few clicks
  •   Comprehensive and flexible
  •   Swift response and efficient service in handling claims

Get answers to common questions about Workmen’s Compensation Policy
The policy provides coverage for accidental death, permanent total disability, permanent partial disability and temporary total disability
  •   Occupational Disease
  •   Compressed Air Disease
  •   Contractor /Sub Contractor Coverage
  •   Terrorism Cover
  •   PAN India Location Coverage
  •   Medical Expenses (Per Employee Limit)
  •   Cashless for Medical Expenses
Permanent total disablement means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement List of disablements is specified in the Workmen compensation Act.
Permanent partial disablement means, where the disablement is of a permanent nature, such disablement as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement. List of disablements is specified in the Workmen compensation Act.
Temporary disablement means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of doing the work which he was doing prior to or at the time of the injury.
The Workmen/Employee Compensation Insurance provides for payment of compensation to Employer on behalf of its employees in case of accidental injury at workplace arising out of and in the course of employment and resulting in death or disablement:
  •   Workmen compensation claims are for accidents within work premises and during working hours
  •   It also covers direct travel of employees from office to home and vice-versa
  •   At the time of injury, workman must have been engaged in the business of the employer and must not be doing something for his personal benefit
  •   Employer and employee relationship is an important prerequisite for issuance of workmen compensation (WC) / employee compensation (EC) policy
  •   Workmen Compensation Act, 1923 [As Amended through Employee Compensation (Amendment) Act, 2017], and subsequent amendments of the said Act prior to the date of issue of the policy.
  •   Fatal Accidents as per Fatal Accident Act, 1855
  •   Common Laws
  •  Construction site workers are excluded from ESIC coverage as per ESI Act but can be covered in WC policy.
  •   Employees with wages above 21000 not covered in ESIC but there is no limit of wages under WC/ EC Act
  •   Seasonal Factories (Includes factories engaged Less than 7 Months) are not covered in ESIC, but can be covered in a Employee compensation policy
  •   Organization with up to 10 workers (20 in case of Maharashtra and Chandigarh) does not require to have ESIC registration however there is no restriction as to no. of workers in WC /EC policy
  •   Lower and flexible rates as compared to fixed ESIC Rates
Occupational Diseases covers those diseases that are specified under Schedule III of Workmen or Employee Compensation Act It covers those disease which arise due to nature of occupation Ex. disease caused by use of toxic compounds
Compressed air disease is one of the occupational illnesses covered under workmen compensation policy. It is a sickness attributed to the working environments where air pressure may be higher or lower than the normal surface air pressure. Ex. Underground or underwater works.
Medical extension covers reasonable medical surgical and hospital expenses incurred by the Insured in connection with any case of injury of employee, if hospitalisation is for more than 24 hours
Any injury on account of terrorist activity within workplace is covered
Contractor / Sub-contractor and their employees can be covered under this coverage
If the insured has more than 1 risk locations (operating branches or factories) across the country, PAN India coverage enables employer to take a single insurance policy to cover its employees in all the branches
  •   Policy Number
  •   Insured Name
  •   Injured Name
  •   Date of Accident (Loss)
  •   Nature of Claim - TTD (temporary total disablement) / PPD (permanent partial disablement) etc
  •   Brief description of accident
  •   Any other document as specified by the Insurance Company
Workmen Compensation is a statutory liability as prescribed under Employee Compensation Act which provides for amount of compensation as below:
Nature of Claim Amount of Claim
Accidental Death (50% * Wages * Age Factor) OR INR 1,20,000 Whichever is higher
Permanent Total Disability Permanent Total Disability (60% * Wages * Age Factor) OR INR 1,20,000 Whichever is higher
Permanent Partial disability Based on % disability / Loss of earning capacity prescribed by medical practitioner * Wages * Age Factor
Temporary total disability Temporary total disability 25% * wages * No of days of absence/disability / 15
*As prescribed by central govt. notification, maximum amount of wages to be considered for compensation is INR 15000 per month
  •   Nature of work / Occupancy
  •   No. of Employees
  •   Monthly wages
  •   Policy duration
  •   Risk Location Address
  •   Claim Experience of last 3 years with amount and count of claims
  •   Sum Insured is the total earnings of the employees in the organisation
  •   The Sum Insured is calculated on the basis of monthly wages of employees
  •   Wages includes basic salary, allowance, perquisites or any benefits provided to the employees (Other than reimbursable expenses made by employees)