Workmen's Compensation Insurance

Coverage Exclusion

Overview

The workmen’s compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy 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 the death of or bodily injuries or occupational diseases sustained by workmen in the Insured’s immediate service and arising out of and in the course of employment. Employer’s Liability insurance covers for bodily injury to employees occurring within the scope of their employment when that Liability is not covered by worker’s compensation.

The policy covers legal Liability of an employer under:

  • Workmen’s Compensation Act, 1923, and Subsequent amendments of the said Act prior to the date of issue of the policy
  • Indian Fatal Accidents Act, 1855, and Subsequent amendments of the said Act prior to the date of issue of the policy
  • Common Law

Coverage

  • Death
  • Permanent total disablement
  • Permanent partial disablement
  • Temporary disablement
  • Legal costs and expenses incurred with the company’s consent
  • Who needs these policies?
  • Any employer of employees who do not qualify as “workmen” but share an employee-employer relationship

Exclusion

  • Any injury which does not result in fatality or partial disablement for a period exceeding 3 days
  • The first 3 days of disablement where the total disablement is less than 28 days
  • Any non-fatal injury caused by any Accident directly attributed to:
  • Cumulative bonus for each claim free year
  • Liability to employees of contractors of the Insured (unless separately declared and covered)
  • Liability of the Insured assumed under an agreement
  • Diseases mentioned in Part ‘C’ of Schedule III of the Workmen’s Compensation Act, 1923
  • Any change in statute provisions after the policy has commenced