Workmen Compensation Insurance


Employee compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy the obligations imposed by the employee’s compensation statutes. It is compensation payable under a scheme set out in the Employee Compensation Act of India, monitored by the Ministry of Labor. The policy compensates the Insured/Employer against his obligation as an “employer” for the accidental injuries (including mortal) borne by the employees in the course of work. All employers, including contractors or principals, appointing and involving ’employees’ as demarcated in the Employees’ Compensation Act or sharing an employer-employee relation are eligible to buy this cover.

The Workmen’s Compensation Insurance covers the legal accountability of the employers under the Workmen’s Compensation Act 1923 and the Fatal Accident Act 1855. Significant changes have been made in the Workmen’s Compensation Act, 1923 vide the notification dated 18th January 2010 for the Workmen’s Compensation (Amendment) Act, 2009: Workmen’s Compensation Act, 1923 is now called the Employees Compensation Act, 1923.

Along with preventive measures and safety precautions are taken, accidents at any workplace are inevitable. The Workmen’s Compensation policy helps the employer to pay the reimbursement to the employees or their family in case of bodily injury it might be permanent partial disablement / total disablement / temporary disablement or death caused due to injury and accident at the workplace (including certain occupational disease) arising out of and in the course of employment. This insurance provides coverage for medical expenditure, compressed air disease, occupational disease, and terrorism.

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