Workmen's Compensation (WC) Insurance

The new Employee Compensation Act has brought in major amendments for all the compensations under this Act:

• Medical Expenses, which was amended from a limited maximum exposure of INR 2,400 (earlier) to actual expenses incurred to treat the employee
• The liability for Death and Disability has been doubled, with the maximum liability for death increasing to INR 914,160 and for Permanent total disability increasing to INR 1,096,922
• Compensation towards Funeral Expenses has also been increased to INR 5,000 from INR 2,500 earlier

• The insurance covers the employer's statutory liability for workmen's death, bodily injuries, or occupational diseases arising during employment
• The Act has a broad definition of 'arising out of and in the course of employment', including injuries caused by the employee's negligence
• WC Cover under Common Law is for all institutions and corporations with unlimited liability, while WC Cover under the Act is limited to industrial outfits and follows specific provisions for compensation in various situations

This insurance is designed for employers who hire workmen, as it covers their liability for accidental death, bodily injury, or occupational diseases as per the Workmen's Compensation Act, 1923

• Premium rates depend on the nature of duties performed.
• The premium is calculated using the estimated annual wages paid to the workmen, which also serves as the sum insured.
• At the end of the policy period, actuals will be reconciled, leading to adjustments in premiums, making it an adjustable policy.

This insurance does not cover any interest and/or penalty that may be imposed on all insureds or an insured on account of failure to comply with the requirements of the said Workmen's Compensation Act, 1923, as amended