TrueInsureAgent
8
Workmen Compensation
Statutory under the Employee’s Compensation Act, 1923

Your legal liability to pay compensation when an employee is injured or killed at work. This is not optional generosity — the Act fixes the amounts, and they are payable whether or not you were at fault. Insurance simply funds a liability you already have.

₹52,000
from, 45 employees
50%
of monthly wages × relevant factor
30 days
to report a fatal accident

Illustrative figures until sourced from the insurer of record.

What it covers

Death and disability

Scale fixed by the Act

Medical expenses

Treatment of the injury

Legal costs

Commissioner proceedings

Contract labour

Extendable to contractors

Plans

45 employees, light manufacturing, ₹2.16 Cr wage roll

Premiums and claim-settlement ratios are illustrative until sourced from the insurer of record.

Employee Compensation

93.7% settled
New India Assurance

Most experienced at Commissioner proceedings, which is where these claims are actually decided.

₹52,000
a year
Quote this

Workmen Comp Plus

97.1% settled
Bajaj Allianz

Extends automatically to contract labour and includes occupational disease cover, which the base Act wording does not.

₹58,400
a year
Quote this

Employee Care

95.9% settled
Cholamandalam MS

Cheapest. Strong on manufacturing risk, but contract labour must be declared and endorsed separately.

₹49,600
a year
Quote this
What it will not pay for

Read this before you buy.

  • Injury from the employee’s own intoxication or wilful disobedience of safety rules
  • Injuries outside the course of employment
  • Employees not on the declared wage roll
  • Contract labour unless specifically declared and endorsed
  • Occupational disease unless the extension was bought
How a claim works

This claim is a legal process, not a settlement negotiation. Amounts are fixed by statute, and disputes go to the Employee’s Compensation Commissioner rather than to the insurer.

  1. 01

    Record it and treat

    · day 1

    Enter it in the accident register and get the employee treated. Report fatal and serious accidents to the labour authorities within the statutory window.

  2. 02

    Notify the insurer

    · week 1

    With wage records and the employment proof. Compensation is calculated from the monthly wage, so payroll records drive the amount.

  3. 03

    Compensation computed by statute

    · weeks 2–8

    Death and permanent disability are 50% of monthly wages multiplied by an age-based relevant factor. There is no negotiation on the formula.

  4. 04

    Paid, or contested at the Commissioner

    · months

    If the employee disputes the amount, it goes to the Commissioner. The insurer defends and pays the award, including interest and any penalty.

The common mistake

Assuming group accident cover does this job. Group personal accident pays a fixed benefit to the employee; workmen compensation funds your statutory liability under the Act. A commissioner’s award is enforceable against the company either way.