Protect your Workmen and Business with a Comprehensive Compensation Policy


Show your employees you care about them and their families

As a business person, you always strive to provide your workers with a safe and secure working environment. Even with the best practices and safeguards in place, accidents do take place.

In the unfortunate event of an Employee suffering bodily injury (temporary or permanent), or death during the course of his/her employment, as an Employer you are legally liable to pay compensation to the him/her or their next of kin under the Employee’s Compensation Act 1923, The Fatal Accidents Act 1855, and at Common Law.

Such incidents can however put considerable financial strain on your resources. At Ethika, we believe that investing in a sound Workmen (Employee’s) Compensation Policy reassures your employees while securing your companies financial health.

A Workmen Compensation Insurance protects businesses and business owners against financial liability arising out of workplace accidents. It encompasses not just workmen but all employees. Aside from personal accident cover a Workmen Compensation Insurance covers any additional claims that may be brought against the company.

A well-founded Workmen (Employee’s) Compensation Policy:

  • Covers statutory liability of an employer as per above laws for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment.
  • Recognizes that The Employee’s Compensation Act provides a very wide meaning for the term ‘arising out of and in course of employment’ (for example a workman starting from his house to the work place is treated as in course of employment). Death of or injuries arising out of an employee’s own negligence are also treated as ‘arising out of employment’.
  • Recognizes that Benefits under Common Law the liability is unlimited.
  • Further, the Employees covered under ESI Act need not be covered under this policy.
  • Additionally, legal costs and expenses incurred can also be covered with Insurers consent.
  • Greater engagement of employees with company growth

The premium rates for such a compensation policy are based on the nature of duties performed and on the basis of annual estimated wages disbursed to the workmen.

  • Death
  • Permanent total disablement
  • Permanent partial disablement
  • Temporary disablement
  • Occupational diseases
  • The policy can also be extended to include medical expenditure for necessary treatment
  • The policy can be extended to cover to include the Contractors Employees
  • The Insured’s liability to contractors’ employees (unless specifically declared and covered)
  • Any liability of the Insured which attaches by an agreement but which would not have attached in the absence of such agreement.
  • Any interest and/or penalty which may be imposed on an insured because of failure to comply with the requirements of the said Workmen’s Compensation Act, 1923 as amended.

Workmen Compensation Insurance Vs Group Personal Accident Insurance (Policy Comparison)

At Ethika we believe that by understanding the risks and the specific coverage offered by different insurance policies, we can help our clients make better more informed decisions. We therefore recommend that in addition to a Workmen Compensation Policy, employees be made aware of the financial securities and risk coverage offered by Group Personal Accident Insurance.

Accident Due to EmploymentYesYes
Accident Outside WorkplaceNoYes
Accident Due to Drug/Alcohol AbuseYesNo
Occupational DiseaseYesNo
CompensationDependent on IncidentFixed
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