Workmen’s Compensation Insurance

Did you know it is a legal requirement for all businesses in India that employ workmen to take out Workmen’s Compensation insurance policy? This insurance ensures that all employees are protected if they are injured, killed or contract a disease during the course of their work.

Workers compensation insurance pays benefits to a worker who incurs a job-related injury or illness. For purposes of workers’ compensation, an injury is deemed to be job-related when it arises out of employment activities and when it occurs in the course of employment. Liability to employees under the Workmen’s Compensation Act 1923, Fatal Accidents Act 1855 and at Common Law is covered under this policy. Workers compensation insurance assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work.

Employer shall be liable  to pay compensation, in accordance with the provisions of Workmen Compensation Act, 1923, for personal injury or death or disease contracted specified therein as an occupational disease peculiar to that employment in Part A Schedule III of Workmen Compensation Act 1923, caused to a workman by accident arising out of and in the course of employment.

The policy covers legal liability of an employer under:

Table ‘A’ – 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 amendment to the said Act prior to the date of issue of the policy, the Fatal Accidents Act, 1855 and at Common Law.

Table ‘B’ – Indemnity against legal liability under the Fatal Accidents Act, 1855 and Common Law. (Table ‘B’ policies may not be issued to cover employees who fall within the definition of “Workmen” under the Workmen’s Compensation Act, 1923 as amended).