Workmen Compensation Policy covers the legal liabilities of the employer by offering financial compensation to their workforce as per the Workmen Compensation Act of 1923. The WC policy provides insurance benefits to the employees in case of work-related injuries or mishaps.
Worker's Compensation is a legal obligation mandated by government regulations. This legislative mandate ensures that employees have access to financial security in the unfortunate event of deadly accidents. The provision helps employees and their families handle unexpected events, creating a safer and more secure work environment.
Accidents and injuries can happen anytime. Do you have the right coverage to protect your employees and your business? At Policybazaar for Business, we help you find the right Workmen Compensation Insurance, ensuring compliance and financial security. From paperwork to 365-day claims support, we handle it all—so you can focus on running your business with peace of mind.
Sajja Praveen ChowdaryBusiness Head - Policybazaar for Business
Here are some of the reasons why all employers should buy workmen compensation insurance coverage:
What type of business do you run?
There are two types of WC Policies or labour insurance policies:
The workers compensation insurance provides coverage for the following:
Here are the add-ons provided under the WC Policy:
The workers compensation policy does not provide coverage for the following conditions:
You may also read: Employee Negligence
The compensation to be paid by the employer depends on the age of the workman, the nature of his injury and the average monthly salary or wages paid to him. However, the minimum and maximum compensation rates are fixed for death and disability, subject to timely revisions. Furthermore, in the event of a worker's death, the employer must compensate their dependents.
The Ministry of Labour & Employment in India has formed the ‘Social Security Division. It is responsible for framing social security policies for the workmen and ensuring their implementation as well as enforcing the Workman Compensation Act in India. However, the various state governments administer the act through Workmen’s Compensation Commissioners.
Read MoreRefer to the table below to learn about the amount payable under employee compensation/ WC policy:
| Nature of Claim | Amount of Claim |
| Accidental Death | (50% * Age Factor * Wages) OR Rs 1,20,000 Whichever is higher |
| Permanent Total Disability | (60% * Age Factor * Wages) Permanent Total Disability Or Rs 1,20,000 Whichever is higher |
| Permanent Partial Disability | Loss of earning capacity prescribed by a medical practitioner/Based on % disability * Age Factor * Wages |
| Temporary total disability | 25% * No. of days of absence/disability * Wages / 15 |
Follow the steps below to raise a claim under the workers compensation policy:
Inform your relationship manager about the incident.
Fill out and submit the claim form they shared.
The information you provide will be sent to the insurance company for evaluation and claim registration, leading to the issuance of a claim reference number.
Submit all the required documents for further processing.
After approval, the claim amount will be released by the insurance company.
The documents required for all kinds of claims under the workers compensation policy are as follows:
The documents required in case of fatal claims under a Workers Compensation Policy Policy are as follows:
The policy period under Workers Compensation Insurance is as:
Note: A minimum of 2 employees is required, and the maximum count depends on the insurer's terms.
Various insurance companies offer Employee Compensation Insurance online. One may get confused while selecting the most suitable policy. Additionally, worker compensation insurance also needs jurisdiction that comes in the business area of the prospect.
However, if one takes the help of an insurance web aggregator to compare different workers compensation insurance plans, he/she can get the most suitable option. A reliable web aggregator asks certain questions to the prospect and shows the result based on these. This is how you can find a suitable WC policy for your business.
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