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WORKMEN’S COMPENSATION INSURANCE

ABOUT

According to Workmen’s Compensation Act (Workmen Compensation Act amended as Employee Compensation Act) of India, if personal injury is caused to an employee by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation. While obtaining Workmen’s Compensation Insurance is not mandatory, the liability to pay compensation as per Act still rests on the Employer. Workmen’s Compensation enables the employers to transfer legal financial liability to the Insurer for accidents occurring during the course of employment.

The policy shall be in the name of the employer. The employer can cover his own employees as well as his contractors’ employees. All employees shall be covered under the Policy. Occupational diseases (if any) can be covered at an additional premium.

WORKMEN’S COMPENSATION INSURANCE

BENEFITS

  • Policy provides Indemnity against legal liability to all employees (whether or not coming within the definition of the term Workmen) under the W.C.Act 1923 and subsequent amendments, the Fatal Accidents Act, 1855 and at Common Law.
  • Covers legal liability of the Employer to workmen in the employment of Contractors performing work for the Principal.
  • Compensation could be claimed under WC Act, Fatal Accidents or Common Law. However, the affected Employee would be allowed to approach any one of the forums only.
  • If compensation is sought under WC Act, amount of compensation will depend upon nature of injury, age of workman and wages
  • COVERS TOTAL EARNINGS OF EMPLOYEES: “Earnings” mean the employees total remuneration including overtime, and few other benefits received by the employees from the employer in connection with their employment.
  • COVERS CONTRACTORS EMPLOYEES: In respect of Contractors’ Employees, sum insured depends upon whether the Contract is for ‘labour’ only, ‘labour & materials’ or ‘labour, materials & equipment’

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MEDICAL EXPENSES

  • As per the amended act, Employer is liable for “actual amount incurred” by employee in respect of work related accidents. Accordingly, the Policy would cover expenses as per Act subject to limitations.

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