The Workmen (Employee’s) Compensation Policy

In an unfortunate event of an Employee suffering a bodily injury (temporary or permanent), or death during the course of employment, Employer is legally liable to pay compensation to the Employee under the Employee’s Compensation Act 1923, The Fatal Accidents Act 1855, and at Common Law.

  • The 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.
  • The 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 or injuries arising out of an employee’s own negligence are also treated as ‘arising out of employment’.
  • The Benefits under Common Law the liability is unlimited.
  • The Employees covered under ESI Act need not be covered under this policy.
  • Additionally, legal costs and expenses incurred can be covered with Insurers consent.

Cover For:

  • Death
  • Permanent Total Disablement
  • Permanent Partial Disablement
  • Temporary Disablement
  • Occupational Diseases.
  • Policy can also be extended to include medical expenditure for necessary treatment
  • Policy can be extended to cover or include the Contractor’s Employees.


  • Premium rates are based on the nature of duties performed and on the annual estimated wages disbursed to the workmen


  • The Insured 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
  • This insurance does not cover 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.

Group Personal Accident policy

The number of people that get injured in traffic or other accidents is staggering. And it is not as if these accidents are confined to the streets. It could happen at the office or God forbid, at home, the place where we feel the safest. Unfortunate accidents have a knack of throwing the financial footing of a whole family out of kilter for a long time.

If we are a breadwinner, an accident can create serious financial problems for our family. It can ruin the comfort and security we work so hard to provide them. Just think of it, who will help them settle the financial commitments in our absence or in case of our disability to earn any more, temporarily or permanently? We need to be prepared.

Personal accident insurance covers the risk of bodily injuries arising directly from an accident that was caused by external, violent and visible means and results in death or disablement.

Disablement could be temporary or permanent.

This cover is for 24 hours, World wide cover.

Maximum sum insured can be taken is about 10 times of annual income.

Group Personal Accident policy is a benefit policy and cannot be a substitute for a WC policy. Group Personal Accident policy can be taken over and above a WC policy to provide extra benefit for the employees as compensation payable under WC is quite less.

Detail comparison is as below table


# Workmen Compensation Policy Group Personal Accident Policy
1 WC insurance is a policy to protect the employer against his liability from the workmen compensation act as well as Fatal Accidents and common Law. Therefore the liability is beyond just the Workmen Compensation act and the definition of “workmen” and encompasses all employees of the organisation. A PA (personal accident) policy benefits the employees in case of an unforeseen event.
2 Workmen Compensation is payable for accidents/ diseases arising out of and during the course of employment… A PA policy pays if the insured dies or sustains any bodily injury resulting solely and directly from accident caused by external, violent and visible means whether due to employment or otherwise
3 Workmen Compensation will come into force in case of occupational diseases A PA policy will not come into force in case of occupational diseases..
4 Under the WC act compensation is payable even if the workman was under the influence of drinks/drugs or he has disobeyed safety regulations i.e. out of the employee’s negligence. This would not be payable under the Personal accident cover.
5 In a Workmen Compensation policy the compensation that would be due to an employee is fixed by the Tariff. It is calculated on the basis of the severity of event, the age of the employee and the wage of the employee. In a PA policy the employer can choose the sum insured which can be a multiple of the salary or a graded cover according to the designation.
6 Even after getting compensation under the PA policy an employee/dependents can claim compensation under the workmen’s compensation act (over and above the compensation under PA) so one has to be prepared for such an eventuality As PA is a benefit policy and not under any Act all compensations are benefits offered to the employees and does not do away with the liability under law