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Workmen Compensation

(Also known as Employee Compensation)


What Is Workers' Compensation Insurance?

We often see minor/major accidents take place in industries resulting in injuries or death of many workers in factories. In few industrial establishments the workers have to handle hazardous materials like chemicals etc. Those employees / workmen are to be compensated as per the workmen compensation act 1923 as the incident took place whilst they are working in the factory. The legislation offers good financial protection/ support to the workers who have been injured or died , while performing their duties. To take care of the above exigencies we suggest the employer to obtain a workmen compensation policy covering their employees.

Frequently Asked Questions

premium calculation is dependent on five factors : number of workers and salary break up as applicable / period of policy / nature of work, height of working : above or below 9 mts : if any one changes, then the premium amount will also change

if someone is covered under ESI, then he / she is not eligible for any claim under WC

WC policy is usually meant for contractual labour, who are not covered under any other type / kind of insurance

the concept of sum insured or coverage does not exist in WC : claim amount, if any, will be decided by the local labour commissioner / labour court and the amount is calculated by taking into account various factors like age of the individual, number of years he / she would have worked had he / she not died or disabled etc etc and whatever the amount decided by the labour court / commissioner is final and has to be paid out by the insurance company by law, there is no dispute in this.

Yes. An earlier Act called Workman Compensation Act was amended in 2009. During that time, it was renamed as Employees Compensation Act. The intention of the act is same, which is, to protect the casual labour with some compensation from employer if any injury occurs to such labour while performing the work.

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