Workmen (Employee) Compensations Insurance


The Workmen Compensation Act (1923) now amended to Employee Compensation Act provides for every employer to compensate its employees for any injury arising out of and in course of employment. Workmen (Employee) Compensation insurance policy provides indemnity against legal liability for WC Act 1923 (and any subsequent amendment), Fatal Accident Act (1855) and Common Law. The costs or expenses incurred by an employer to defend any claim can be paid subject to the consent of the insurance company.

The amount of compensation is as provided in the WC Act and is a factor of the age of an individual, nature of disability and the last drawn salary. The premium is based on the numbers of employees, wages earned, nature of duties and the type of industry. The policy is suitable for all organizations, principal, contractors, & sub-contractors. It is not applicable where employees are covered under Employee State Insurance Corporation (ESIC) cover. The policy does not cover war or allied perils, nuclear and ionization risks, liability getting attached by virtue of a contractual agreement.