Workmen's Compensation Insurance Policy
The Workmen's Compensation Act of India was passed in 1923 and has ever since been
monitoring the employer's liability to pay for any injuries suffered by an employee
during the course of business activities. Since businesses are mandated by the Act
to compensate workers or their families for any injuries suffered, it is a financial
burden which every business entity has. A Workmen Compensation Insurance policy
comes to rescue of business entities in taking over this financial burden. The workmen
compensation insurance policy covers the legal liability of an organization to pay
for the death of its employees or for any injuries suffered if it happens during
the regular course of business. The policy is, thus, like an employee compensation
policy which helps a business in meeting its mandatory requirements.
Coverage features present in a Workmen's Compensation policy
A Workers Compensation Insurance plan provides the following basic coverage features
- Any bodily injury suffered by an employee due to an accident during the course of
- Any bodily injury suffered by an employee due to diseases which are due to the nature
of employment. Moreover, if the employee already suffers from a disease which is
aggravated by the nature of his employment, any injury sustained subsequently would
also be covered.
- Death of the employee
- Temporary disablement
- Permanent total disablement
- Permanent partial disablement
- Any type of legal costs or expenses incurred if such costs are agreed to by the
Besides these standard coverage features, there are additional features present
in a Workmen's Compensation policy in India too. These features are available at
the payment of an additional premium and vary from plan to plan. Some common add-ons
which are available for contractor employees in the employee compensation policy
include the following:
- Coverage for tariff rate based on the aggregate amount of contract provided the
contract is for labor only.
- If, on the contrary, the contract is for both labor and materials, the value of
labor would be decided on merit. However, the minimum value of labor would be 75%
of the amount of contract.
Eligible proposers for workmen compensation policy
An employer, whether he is a principal employer or a contractor, can opt for this
policy if the employer engages 'workmen' for business. The definition of 'workmen'
can be found in the Workmen's Compensation Act. Moreover, employees who are not
qualified 'workmen' can also buy the policy but they would be covered under a separate
Exclusions in Workmen's Compensation Insurance policy
There are exclusions which are applicable in Workers Compensation Insurance policy.
These exclusions include the following:
- Injuries which do not result in death or partial disablement within a period of
- A non-fatal injury caused by an accident due to wilful removal or disregard of a
safety device, alcohol or drug abuse or the wilful disobedience of an order which
would have ensured safety of the workman.
- The first 3 days of disablement are excluded if the disablement lasts for less than
- Perils related to wars, war like situations and nuclear activities.
- Compensation for diseases which are mentioned in Part C of the Workmen's Compensation
Advantages of buying through Paybima
Paybima helps businesses to avail workmen compensation policy in India through an
online easy channel.
- It is an online platform having tie-ups with all leading insurers in the country.
- Compare before buying
- Buy insurance policy with minimal paperwork
- Easy and hassle-free process with minimum documentation
- Compare coverage features and premiums on a single page
A Workmen's Compensation Insurance policy is necessary both for legal reasons and
for taking care of the company's finances in case of any untoward contingency. Thus,
it is an essential coverage which should be taken by businesses to not violate the
legal regulations, create a stress-free environment for your workers - buy a Workmen's
Compensation Insurance policy for your business without delay.
How Does Workmen Compensation Policy Works for Organisation