In an increasingly global work environment, employee rights have rapidly moved forward.
To protect organisations from the threat of expensive lawsuits and large compensation
pay-outs, HDFC ERGO has the Workmen’s Compensation / Employer’s Liability Insurance.
The workmen’s compensation insurance is the primary method by which an employer
can demonstrate the ability to satisfy the obligations imposed by the worker’s compensation
statutes. It is compensation payable under a scheme set out in the Workmen’s Compensation
Act of India, monitored by the Ministry of Labour.
The policy covers statutory liability of an employer for the death of or bodily
injuries or occupational diseases sustained by workmen in the Insured’s immediate
service and arising out of and in the course of employment.
Employer’s liability insurance covers for bodily injury to employees occurring within
the scope of their employment when that liability is not covered by worker’s compensation.
Relevant statutes and laws
under WC/EL policy
The policy covers legal liability of an employer under:
- Workmen’s Compensation Act, 1923, and subsequent amendments of the said Act prior
to the date of issue of the policy
- Indian Fatal Accidents Act, 1855, and subsequent amendments of the said Act prior
to the date of issue of the policy
- Common Law
Who needs these
policies?
- Any employer, whether as a principal or contractor, engaging “workmen” as defined
in the Workmen’s Compensation Act.
- Any employer of employees who do not qualify as “workmen” but share an employee-employer
relationship.
- Death
- Permanent total disablement
- Permanent partial disablement
- Temporary disablement
- Legal costs and expenses incurred with the company’s consent
- Actual medical, surgical and hospital expenses including the cost of transport to
hospital for accidental employment injuries
- Any compensation for diseases mentioned in Part ‘C’ of Schedule III of the Workmen’s
Compensation Act, 1923, which arise out of and in the course of employment
- Any injury which does not result in fatality or partial disablement for a period
exceeding 3 days
- The first 3 days of disablement where the total disablement is less than 28 days
- Any non-fatal injury caused by any accident directly attributed to:
- Influence of drinks or drugs
- Willful disobedience of an order for securing safety to the workman
- Willful removal or disregard of a safety guard device
- War group and nuclear group of perils
- Liability to employees of contractors of the Insured (unless separately declared
and covered)
- Liability of the Insured assumed under an agreement
- Diseases mentioned in Part ‘C’ of Schedule III of the Workmen’s Compensation Act,
1923
- Any change in statute provisions after the policy has commenced