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Business Insurance
Workmen's Compensation Insurance
Cover for your team when work goes wrong and for your business when a claim follows.
Trusted by businesses across India
2020
Governed by the Code on Social Security
₹1.4 L+
Minimum PTD compensation mandated by law
60 months
Maximum temporary disability benefit period
24 hrs
Recommended incident reporting window
⚠️
Legal Requirement for Employers
The Code on Social Security, 2020 (Chapter VII, which replaced the Employees' Compensation Act, 1923 from 21 November 2025) requires employers to pay compensation for workplace injuries, disabilities, or death. That liability is mandatory; a workmen's compensation policy is how most employers cover it. Non-compliance can result in penalties and legal proceedings.
What is Workmen's Compensation Insurance?
Workmen's compensation insurance covers what a business owes an employee who is injured, disabled or killed doing their job. It also covers the payout to dependents in the event of an employee's accidental death.
It also covers the employer. If an injured employee brings a legal claim, the policy meets the defence costs.
Who Needs WC Insurance?
Any business that employs blue-collar or manual workers is legally required to carry Workmen's Compensation Insurance. Here are the most common sectors.
Construction
Manufacturing
Logistics & Warehousing
Food & Beverage
Facility Services
Not just for factories.
If you employ drivers, delivery personnel, housekeeping staff, security guards, maintenance technicians, or any other manual worker — the employees' compensation provisions of the Code on Social Security, 2020 apply to you. Don't wait for an incident to discover your legal exposure.
What Does WC Insurance Cover?
Six categories of protection — fully aligned with the Code on Social Security, 2020 (which carries forward the Employees' Compensation Act framework).
01
Accidental Death
Lump-sum compensation paid to the deceased worker's nominee or legal heir. The amount is calculated using the Schedule IV formula: 50% of monthly wages multiplied by the relevant age factor.
02
Permanent Total Disability
Full lump-sum payment for injuries that permanently prevent the worker from earning in any occupation — including total loss of both limbs, both eyes, or one limb and one eye.
03
Permanent Partial Disability
Proportional compensation for permanent but partial loss of function as listed in Schedule I of the Act — for example, amputation of a thumb, partial hearing loss, or a below-knee amputation.
04
Temporary Total Disability
A half-monthly benefit equal to 25% of the worker's monthly wages, payable for the entire duration of disability — for up to 60 months — to support the worker financially during recovery.
05
Medical Expenses
Reimbursement of necessary medical, surgical, and hospitalisation costs arising directly from a workplace accident or an occupational disease listed under Schedule III of the Act.
06
Employer's Legal Defence
Covers the employer's legal costs, advocate fees, and court expenses when defending compensation claims filed under the Code on Social Security, 2020 or in civil courts.
How is Compensation Calculated?
The Code on Social Security, 2020 carries forward specific formulas for each type of disablement. The formula uses the worker's monthly wages and a relevant age factor from the compensation schedule. The factor decreases with age — meaning younger workers receive higher compensation, reflecting the greater number of earning years potentially lost.
For compensation calculation purposes, the monthly wage is capped at ₹15,000 (as per the notified ceiling). The Central Government revises minimum compensation amounts and wage ceilings periodically.
Death or Permanent Total Disability
50% × Monthly Wages × Relevant FactorExample: Worker aged 30, wages ₹6,000/month. Factor = 228.54. Compensation = 50% × ₹6,000 × 228.54 = ₹6,85,620
Permanent Partial Disability
PTD Amount × % Loss of Earning CapacityThe percentage of earning capacity loss for each listed injury is defined in Schedule I of the Act.
Statutory minimums: The minimum compensation for death is ₹1,20,000 and for permanent total disability is ₹1,40,000 — regardless of what the formula yields. These minimums apply even if the formula produces a lower figure.
Why Workmen's Compensation Matters
Five reasons the cover earns its place — for your people and your business.
Replace Lost Employee Wages
When an injured employee misses weeks of work, this policy steps in to replace a portion of their lost earnings.
Shield Your Business Finances
If an injured employee files a lawsuit, this policy absorbs heavy legal defense costs instead of draining your company's finances.
Insure All Contract Labor
Unsalaried onsite workers create major exposure. Declare your contract labor to ensure they are covered and liability is strictly contained.
Secure New Client Contracts
Providing proof of comprehensive coverage is often a strict, non-negotiable requirement to secure new client contracts demanding active site access.
Mitigate High Injury Costs
Medical bills, wage compensation, and legal fees from one severe injury can easily surpass your premium costs for several years.
Why buy workmen’s compensation from Onsurity
01
We assess before we place
An advisor looks at your industry, your wage roll and the work your team actually does, so you're not buying a standard policy and hoping it fits.
02
We check how your contracting is structured
Undeclared contract labour is the most common gap we find. It's also the one businesses are least likely to know about.
03
One partner for your team and your business
Bring your entire people and business protection stack in place and save critical admin downtime. Run operations smoothly, not in silos.
How to Get a Workmen's Compensation Quote Online
Three simple steps from quote to active coverage.
1
Tell us about your business
Your industry, headcount, locations and the work your team does. Takes about two minutes.
2
Talk it through with an advisor
An advisor walks you through your exposure, how your contracting affects it, and what your current cover would and wouldn't respond to.
3
Get cover placed
Wage roll and risk class confirmed, wording checked, then placed through our insurer partnerships.
Step-by-Step Claim Process
Here's what to do when a workplace incident occurs.
- 1
Report the workplace accident to Onsurity immediately — within 24 hours wherever possible. Early reporting allows faster investigation and avoids disputes.
- 2
Ensure the injured worker receives immediate medical attention. Retain all medical bills, prescriptions, hospital reports, and discharge summaries.
- 3
Log into the Onsurity employer dashboard and initiate a new claim. Enter the incident details, upload supporting documents, and submit.
- 4
Onsurity's team helps compile and forward the claim to the insurer, and coordinates any additional information or medical examination report the insurer requests.
- 5
Once the insurer assesses and approves the claim, compensation is disbursed directly to the worker's registered bank account — or to the nominee in case of death. The IRDAI-licensed insurer decides and pays the claim; Onsurity assists throughout.
Tools, guides & explainers
Size up premiums, benchmark your cover and get clear on the rules before you buy.
WC & GHI Premium Calculator
Get an indicative per-employee monthly cost in seconds.
Open →Is your policy good enough?
Score your current group cover out of 100 and find the gaps.
Open →Workmen Compensation Policy
Full workmen’s compensation policy — coverage, exclusions and how to buy.
Open →ESI vs Group Health Insurance
Where the statutory ESI scheme ends and private cover begins.
Open →Cashless claims, explained
How cashless treatment works and when you can use it.
Open →Network hospitals
What a network hospital is and why it matters at claim time.
Open →Insurance terms, explained
Sum insured, waiting period, co-pay and more in plain English.
Open →Get a quote
Share your workforce details for a tailored WC quote in minutes.
Open →Complete your business protection stack
Workmen’s compensation covers your people at work. Four more cover everything around them.
Asset Insurance
Protection for asset damage due to fire, flood or theft.
Know more →Commercial General Liability Insurance
Protection for third-party injury or property damage.
Know more →Cyber Insurance
Protection for data breach or cyber attack causing financial loss.
Know more →Directors & Officers Insurance
Protection for directors & officers when business decisions lead to claims.
Know more →Frequently Asked Questions
Common questions about Workmen's Compensation Insurance, answered.
In India, paying compensation for work-related injuries or death is mandatory by law — this liability now sits under the Code on Social Security, 2020 (Chapter VII), which replaced the Employees' Compensation Act, 1923 from 21 November 2025. Buying a dedicated insurance policy is not strictly forced on every business, but it is how most employers cover that liability and is highly recommended for high-risk sectors.
No. Group personal accident pays your employee a lump sum for an accident anywhere, at work or outside it. Workmen's compensation covers work-related injury and also covers your liability as the employer if a claim is brought. Many businesses hold both, for different reasons.
Group health pays hospital bills. It doesn't replace wages, pay compensation, or defend you against a claim from an injured employee.
Workmen compensation only covers contract workers where those workers have been declared in the policy. An Onsurity advisor will look at how your contracting is structured and recommend the best measure.
It is calculated based on your total wage roll and the risk class of the work. Headcount matters less than what people are doing.
Explore Related Coverage
Complement your WC policy with these business-insurance products.
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Group Personal Accident Insurance
Voluntary accident cover for all employees — including white-collar staff — providing 24/7 protection anywhere in the world. GPA complements WC coverage and is not a statutory substitute for it.
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Explore the full business insurance suite — combining WC, GPA, fire, liability, and more into one digital platform purpose-built for Indian SMEs and their unique compliance and risk needs.
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