Workmen Compensation Insurance Policy

The workmen's compensation insurance is the primary method by which an employer can demonstrate the ability to meet the obligations imposed by the worker's compensation statutes. It is compensation payable under a scheme set out in the Workmen's Compensation Act of India, monitored by the Ministry of Labour. The policy covers statutory liability of an employer for death or bodily injuries caused to employees due to accidents arising out of and during the course of employment.

Why do you need Workmen Compensation Insurance?

  • To pay all sums for which the insured is legally liable to pay the employees with respect to personal injury by accident or diseases arising out of and during the course of the employment
  • Insured's liability arising either under common law or under the laws set out in the schedule Workmen's Compensation Act 1923.
  • Costs or expenses incurred by the insured with the consent of the company to defend any claims are paid in addition.

What does Workmen Compensation cover?

The Workmen Compensation covers:

  • Bodily injury caused by accident during the course and scope of employment.
  • Bodily injury caused by disease or aggravated by the conditions of the employment.
  • Death or temporary disablement
  • Permanent total or partial disablement
  • Legal costs and expenses incurred with the company's consent

Add-on covers

Contractor employees by charging additional premium can get coverage for:

  • Tariff rate on total contract amount, if the contract is for labour only
  • If the contract is for labour and materials, labour value will be decided as per merits, subject to a minimum of 75% of the contract amount.

Who can take the insurance?

  • Any employer whether as a principal or contractor engaging "workmen" as defined in Workmen's Compensation Act to cover his liability
  • Employees who do not qualify as "workmen" can also be covered under the separate table


  • Any injury that does not result in fatality or partial disablement for a period exceeding three days
  • Any non-fatal injury caused by any accident directly attributed to:
    • Willful removal or disregard of a safety guard device
    • Under the influence of alcohol or drugs
    • Willful disobedience of an order for securing safety to the workman
  • The first 3 days of disablement where the total disablement is less than 28 days
  • Liability of the insured assumed under an agreement
  • War group and nuclear group of perils
  • Liability towards the contractor's employees
  • Any compensation for diseases mentioned in Part 'C' of WC Act-1923

Why PolicyBazaar?

We at PolicyBazaar can help you find the best policies to protect your business. We understand workers' compensation requirements in the jurisdiction(s) applicable to your business. Our experienced agents will counsel you in ways to implement safety controls that can help lower your insurance premiums. Get new quotes, start comparing and buy now!

What does Workmen Compensation cover?


A Workmen Compensation plan covers:

1. Bodily injury caused due to an accident in the course and scope of your employment

2. Bodily injury caused or worsen by the conditions of the employment

3. Death or temporary disability

4. Permanent or temporary disability

5. Legal costs or expenses incurred with the company’s approval

Who is accountable for providing the advantages under the Workman Compensation Act?


The employer is 100% responsible for providing all the benefits underwritten in the policy, within 30 days from the date when the claim is made. In certain circumstances, the employer directly settles the claims or sometimes by providing insurance to its employees.

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