Workmen Compensation
Insurance

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at just ₹4,000 per year* for your business

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workmen compensation policy

Every day, 3 workers tragically lose their lives in Indian factories. From 2017 to 2020, India reported an average of 1,109 deaths and over 4,000 injuries in registered factories annually. Shockingly, the construction sector alone witnesses up to 38 fatal accidents daily across the country.

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    What is a Workmen Compensation Insurance?

    Workmen compensation policy offers compensation to employees who suffer injuries or disabilities due to workplace accidents. Additionally, it provides death benefits to the families of employees who have lost their lives while on the job.

    workmen compensation insurance

    The Workman’s Compensation (WC) Act of 1923 and the Fatal Accidents Act of 1855 mandate that employers must provide compensation to employees for work-related injuries, disabilities or death. Therefore, it is mandatory for any manufacturing unit, factory, warehouse, trading company, or service establishment to obtain this policy.

    workmen compensation policy cover

    What is covered?

    • Death: This includes an amount equal to 50% of the deceased workman’s wages, multiplied by the relevant factor#, or a minimum of ₹1,20,000, whichever is higher.
    • Permanent Total Disability: In case of permanent total disability, the compensation is 60% of the deceased workman’s wages, multiplied by the relevant factor#, or a minimum of ₹1,20,000, whichever is higher.
    • Permanent Partial Disability: The compensation is determined based on the percentage of loss of earning capacity resulting from the accident, as stated in the WC Act or the percentage assessed by a qualified medical practitioner.
    • Temporary Total Disability: In the event of temporary total disability, a half-monthly payment equivalent to 25% of the workman’s monthly wages is provided.

    What is covered?

    #The Workmen Compensation Act specifies a Factor Multiplier table based on the employee’s age and wages.
    *Scheduled II of Workmen’s Compensation Act 1923 defines the list of working sectors where the policy is mandatory.
    We’ve forged partnerships with India’s foremost insurers and the world’s largest AA-rated reinsurers to bring important products to companies like yours.

    The Power of Workmen Compensation Insurance

    Cement plant tragedy: An oxygen cylinder explosion at a cement plant led to the tragic loss of 3 contract workers’ lives, while 2 other workers suffered severe injuries. Fortunately, having a Workers’ Compensation policy in place enabled the cement manufacturer to provide compensation to the families of the deceased and to those who sustained severe injuries.

    Fire at plastic granule unit : Nine workers suffered serious burns in a fire accident while working on the production of plastic granules at a manufacturing unit. The incident occurred at night, resulting in over 50% burns for these employees. The company’s Workmen Compensation policy came to their aid by compensating the injured workers and covering their medical treatment expenses.

    Workmen Compensation Insurance

    Why Invest in a Workmen Compensation Insurance?

    Mandatory by Law:

    The Workmen’s Compensation Act of 1923 necessitates a specialised insurance policy for frontline workers to ensure fair compensation in the event of work-related injuries. Not maintaining Workmen Compensation policy may invite fines and penalties against the company.

    Risk Mitigation:

    This policy serves as a critical shield for businesses by mitigating the risk of substantial compensation payments and potential
    legal actions.

    A shield for high-risk exposure companies:

    It is particularly valuable for organisations with employees exposed to elevated health and safety hazards, making it essential for manufacturing, mining, construction companies, and transport undertakings, factories, plantations and similar establishments with over 20 workers.

    Investing in a Workmen Compensation Insurance policy is a proactive step to protect the rights of employees and shield businesses from financial and legal repercussions.

    What is not covered?

    • Accidents occurring at a location other than the place of employment.
    • Self-inflicted injuries or the deliberate worsening of an accidental injury.
    • Injuries caused by accidents or diseases are directly attributable to war, invasion, and similar events.
    • Health issues or accidents that occur when the employee was under the influence of alcohol or drugs.

    Claims Roadmap

    Acknowledgment and Co-ordination

    1. Employee Reports Injury

    Employee is required to promptly report any injury to their employer, along with a medical report.
    Thorough Review

    2. Employer Submits Details

    The employer proceeds to submit comprehensive details of the injury, including medical reports and the compensation amount to the Workmen Compensation Commission.
    Independent Investigation

    3. Commission Review

    The Workmen Compensation Commission reviews the entire case file and, upon assessment, issues a claim report.
    Legal Counsel Engagement

    4. Claim Submitted to Insurer

    After the claim report is submitted to the insurance company, the insurer processes the claim in accordance with the final decision of the commission.

    Why Onsurity

    Custom Solutions

    Custom Solution

    We create plans that fit your needs after assessing your risk exposure.

    Personal Touch

    Personal Touch

    We combine digital ease with personalised service.

    Great Risk Management

    Great Risk Management

    We’re backed by experts who understand unforeseen risks.