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All you need to know about Workmen's Compensation Insurance

Posted on 31 May 2021

Employees are the backbone of any business organisation. Their productivity directly affects the business and its ability to generate profits. Therefore, providing a safe and secure work environment for the employees is one of the primary concerns for any employer.
However, it cannot be denied that accidents at workplace are very common. Some accidents may cause injuries, permanent or partial disabilities, or even death of the employees. In such cases, the employers are liable to pay adequate compensation to the injured employee(s) or the nominee.
In order to protect a business from the threat of high compensation amount, the Workmen’s Compensation insurance policy plays a pivotal role. Read more to know about this insurance policy.

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What is Workmen’s Compensation Insurance?

Workmen's Compensation insurance is a special type of insurance that safeguards the employers against the compensation amount which they have to pay to their employees in case of injury or death due to workplace hazard during the duty hours.
Compensation to be given under this policy is as per Employee’s compensation Act, 1923.
As an employer, you can purchase a Workmen’s Compensation policy to cover the risk of your employees against workplace hazard.

How Workmen’s Compensation insurance benefits the business owners?

Paying adequate compensation to employees in case of workplace hazard is mandatory for business houses in many countries, including India. Workmen’s Compensation benefits the business owners in the following ways:

  • Meeting statutory requirements

    In India, it's mandatory for all companies to ensure adequate compensation for its employees as per the Employee’s Compensation Act, 1923 and Indian Fatal Accidents Act, 1855. A Workmens Compensation Policy helps the business owners in meeting these statutory requirements.

  • Comprehensive protection for employees

    Injuries or death of an employee may result in a huge liability for an organisation. With the help of a Workmen Compensation policy, an employer can get these liabilities covered and provide comprehensive protection to his/her employees against the risks of work-related injuries, or death.

What does a Workmen’s Compensation policy cover?

A Workmen’s Compensation policy usually covers the following:

  • Bodily injuries caused to an employee due to an accident due to the employment.
  • Medical treatment of a disease which got developed or aggravated due to the conditions of the employment.
  • Death of the employee caused to a work-related hazard.
  • Partial or permanent total disability caused to a work-related hazard.

What is not covered by a Workmen Compensation policy?

Below are the common exclusions for the Workmen’s Compensation policy:

  • Any injury caused due to war, invasion, or other related perils
  • Injury which does not result in the total or partial disablement of the employee for a period exceeding three days.
  • Accidents arising due to the influence of drugs or alcohol
  • Accidents caused if an employee disregards safety protocols

How to buy Workmen’s Compensation policy?

A Workmen’s Compensation policy is easy to purchase. There are many insurance companies which offer online Workmen Compensation policies. You can take help of an insurance aggregator or directly visit the website of these companies to purchase a Workmen Compensation insurance policy.
You will be required to enter the basic details about your business, including the nature of business, number of employees, wages of employees, risks involved etc. You may also have to submit the relevant documents to purchase the policy.

To Conclude

A Workmen’s Compensation insurance policy is essential for a business to safeguard its working capital against high compensation amount it has to pay in case of a severe injury or death of its employee during the duty hours. In fact, it is mandatory under the Employee’s Compensation Act of 1923 and Indian Fatal Accidents Act of 1855.
As one of the leading insurance companies in India, we offer Workmen’s Compensation Policy for our customers. ICICI Lombard Workmen’s Compensation Policy is designed to provide the insurance policy as per Employee’s Compensation Act, 1923

  • Workmen’s Compensation Insurance Policy
  • Product Code: 4010
  • Product UIN: IRDAN115P0010V01200607

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Workman Compensation, 4010 , IRDAN115P0010V01200607)