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What is Workmen Compensation Insurance?

A Workmen Compensation Insurance policy provides financial support to your employees in the event of work-related injuries or illnesses. In such an event, the employer needs to pay compensation to the employee under the Employee’s Compensation Act 1923. This insurance policy, which is also known as Worker’s Compensation Policy (WC Policy), fosters a conscious work environment benefiting you and your employees.

A WC policy helps you, the employer, pay the required compensation to the employee or his/her family in case of death or bodily injury leading to partial, permanent and temporary disablement suffered due to an accident at the workplace during the employment course. In exchange for receiving the benefits through this policy, employees generally forfeit the option to sue their employers due to negligence at the workplace.

What is the Workmen Compensation Act?

The erstwhile Workmen's Compensation Act 1923, now known as Employee's Compensation Act, provides financial compensation to employees if they encounter an accident while doing their duties. Under this law, all full-time, part-time or casual employees are liable to receive financial protection. The Act's provisions kick in when employees suffer injuries that render them incapable of performing their duties or they succumb to their injury.


The compensation workers are eligible to receive under this Act are:

Scenarios Compensation Beneficiary
Temporary total/partial disability due to an injury 50% of daily wages (up to a maximum of Rs. 15,000 per month) multiplied by the number of leave days taken
  1. To the injured
  2. To the employer only if no objection 
certificate received by injured
Permanent total/partial disability due to an injury
60% of the employee’s monthly wages (up to a maximum of Rs. 15,000) multiplied by percentage of disability and relevant age factor OR An amount of Rs 1.4 lakhs, whichever is more
  1. To the injured
  2. To the employer only if no objection 
certificate received by injured
Death resulting from injury
50% of the employee’s monthly wages (up to a maximum of Rs. 15,000) multiplied by the relevant age factor OR An amount of Rs 1.2 lakhs, whichever is more
  1. Employee's Compensation Commissioner
  2. Employer only if the employer provides proof of the amount paid to the commissioner.

Why is Workmen Compensation Insurance Policy Important?

Financial support

This insurance offers financial assistance and support to employees when they suffer injuries or illnesses at work. It covers their medical expenses and a portion of lost wages.

Boosts employee's trust and morale

Offering this insurance demonstrates your commitment to employee well-being. Employees can feel more valued and supported, knowing that they are protected in case of an unfortunate event.

Improves reputation

Prioritising employee safety and well-being can positively impact how customers and investors perceive your company. An worker’s compensation policy enhances your brand image by demonstrating corporate responsibility and ethical business practices.

Ensures Compliance

Several contracts and agreements with clients and vendors may require proof of this insurance policy. When you have it, it ensures your business remains compliant with contractual obligations. This can help you avoid legal disputes or agreement termination.

Business risk mitigation

A WC policy helps mitigate the financial risks arising from workplace injuries or illnesses, providing a safety net against unexpected events that could jeopardise your operations and negatively impact your revenues.

Peace of mind

While employees know they are financially cushioned in case of injuries suffered on job, employers get the assurance they are fulfilling their legal obligations and protecting business interests.

What is covered under Workmen Compensation Insurance?

Inclusions Exclusions

Accidental death

Permanent total or partial disability

Temporary total disability

Occupational diseases@ Central Know Your Customer (CKYC) is a centralised repository for KYC documents of individuals. CKYC is a 14 digit number linked with the ID proof.

Covers contractors, sub-contractors and their employees

Medical extensions@ Central Know Your Customer (CKYC) is a centralised repository for KYC documents of individuals. CKYC is a 14 digit number linked with the ID proof.

Terrorism@

Pan India coverage@

Compressed air disease@ Central Know Your Customer (CKYC) is a centralised repository for KYC documents of individuals. CKYC is a 14 digit number linked with the ID proof.

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Injuries outside the course of employment

Self-inflicted injuries or those under the influence of substances

Non-compliance with safety regulations

Pre-existing conditions not aggravated by work

Underground or underwater mine/ underground services

Quarries

Wrecking or demolition

Losses suffered due to offshore rigs

Aircraft crew wrt flight risks

Fire bridges

Ship crew

Services in armed forces

Operations of railways

Firecracker manufacturing activity

Losses suffered in manufacturing or supplying Central Know Your Customer (CKYC) is a centralised repository for KYC documents of individuals. CKYC is a 14 digit number linked with the ID proof.

Pandemics/epidemics as declared by WHO or Government of India

See all

Note

for detailed understanding of the add-on please go through with the policy wording

Advantages of ICICI Lombard’s Workmen’s Compensation Policy

Our Worker’s Compensation Insurance policy offers a range of advantages. These include:

Robust and flexible coverage

This is one of the significant advantages. A Worker’s Compensation Policy provides extensive coverage to both employers and employees. Read more Content

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Seamless claims settlement process

Efficient service when handling claims sets us apart from the rest. Our claims settlement team springs into action when a claim is filed. They provide the necessary.. Read more Content

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Custom solution for your business needs

At ICICI Lombard, we recognise that every business has its own set of challenges and risks. That’s why our employee’s compensation insurance policy is thoughtfully designed to..Read more Content

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Streamlined and convenient buying journey

We value your time and have taken the necessary steps to make the buying journey as seamless as possible. You can buy our Worker’s.. Compensation Policy with just a.. Read more Content

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Why you should buy ICICI Lombard’s Workmen Compensation Insurance Policy?

Looking for one reason to buy our WC policy? There are many, including:

Extensive coverage

ICICI Lombard’s Workmen Compensation Insurance provides extensive protection for you and your employees, ensuring workplace risks and liabilities are managed effectively.

Quick and easy purchase:

The buying process is straightforward and efficient, saving you time and effort.

Customisable options

Tailor the policy to meet the specific needs of your business with our flexible and adaptable plans.

Dedicated claims support

Our expert claims settlement team ensures a smooth, hassle-free and timely resolution of claims.

Effortless experience:

Enjoy a seamless process from start to finish, designed to prioritise your convenience and satisfaction.

How to buy Workmen Compensation Insurance Policy from ICICI Lombard?

To purchase WC insurance online:

  • Start by filling in your details on the right side of the webpage here. This includes your mobile number, email, company name, and pin code.

  • Once you’ve filled the necessary details, click on ‘Proceed to Buy’.

If you need assistance, you can fill out the ‘Request a Callback’ form and our team will get in touch with you at your preferred time to address any questions or assist you with your policy purchase.

For more information, feel free to email us at businessinsurance@icicilombard.com

What is the claim process for Workmen Compensation Insurance?

1
Notify Immediately

Intimate us here about the accident and the resulting disablement or death of the worker.

2
Verification by Insurer

An investigating officer from the insurance company will verify the claim to ensure its authenticity.

3
Gather Evidence

Collect all necessary information and supporting documents related to the incident.

4
Submit Claim Form

Provide the completed claim form along with the following details:

  • Policy number

  • Name of the insured

  • Name of the injured worker

  • Date and nature of the accident

  • Brief description of the incident

  • FIR (if applicable)

  • All other relevant documents needed to process the claim.

Employee’s Compensation Insurance blog articles

Types Of Fall Protection At Workplace

This article explains the importance of fall protection systems such as guardrails, PFAS, safety nets, and warning lines, and details how insurance helps with medical, legal, and financial coverage after workplace falls. Read more Content

Read more
Driving Safety Tips For Employees

The blog outlines essential driving safety practices for employees and explains how group insurance provides financial and medical support in case of road-related accidents and mental health concerns.Read more Content

Read more
Types Of Industrial Accidents

The article lists major industrial accidents such as slips, machinery entrapments, vehicle crashes, electric shocks, and chemical exposure, and explains safety measures and the importance of workmen’s compensation insurance.Read more Content

Read more
Read more

Frequently asked questions - Workmen Compensation Insurance Policy

1.What types of injuries or illnesses are typically excluded from coverage under Worker’s Compensation Insurance?

This insurance does not cover injuries or illnesses resulting from drug or alcohol use. Additionally, it excludes self-inflicted injuries or accidents caused by the employee's intentional disregard of rules.

2.Are there any pre-existing health conditions that may be excluded from coverage under Worker’s Compensation Policy?

Pre-existing health conditions that are not directly caused by work-related activities may be excluded from coverage in this insurance policy.
It is essential to understand that each insurance policy has its own terms and conditions, which may vary from one insurer to another.

3.What are the basic coverage provided under Workmen Compensation Insurance policy?

The Worker’s Compensation Insurance offers comprehensive coverage for various types of disabilities and accidents, ensuring financial protection in case of unforeseen circumstances. Specifically, it includes accidental death, permanent total disability, permanent partial disability and temporary total disability, among others. However, please read policy wording to know detailed coverage of the policy.

4.What add-on covers are provided in Workmen Compensation policy?

A WC policy is designed to protect both employers and employees in the event of a work-related injury or illness. In addition to its core coverage, the policy offers several valuable add-ons to enhance the protection provided. These add-ons include:

  • Occupational Disease Coverage

  • Contractor/Subcontractor Coverage

  • Medical Expenses Coverage

Please read policy wording to know more about add-on covers.

5.What is Worker’s Compensation Insurance?

A WC Policy provides financial protection to employers and employees in case of workplace injuries or illnesses. It ensures that employees receive medical benefits and wage compensation if they are unable to work due to job-related incidents.

This insurance also shields employers from potential legal liabilities arising from workplace accidents. By covering medical expenses and loss of income, it offers peace of mind to both employees and employers.

6.What legal liabilities are covered in WC Policy?

The legal liabilities covered under WC policy are:

  • Fatal Accidents as governed by the Fatal Accidents Act, 1855

  • Applicable provisions under Common Law

7.What is occupational disease cover?

Occupational diseases include illnesses listed under Schedule III of the Employee's Compensation Act. These diseases arise from the nature of the occupation, such as those caused by exposure to toxic compounds.

8.What does medical extension add-on cover?

A medical extension add-on covers means medical expenses incurred by the insured for an employee's injury, provided the hospitalisation lasts more than 24 hours.

9.What is covered under Contractor /Subcontractor Coverage?

Contractor and subcontractor coverage safeguard against potential losses and damages during a construction project.

10.What is PAN India location coverage?

If the insured operates multiple locations, such as branches or factories, across the country, PAN India coverage allows the employer to secure a single insurance policy to cover employees at all locations.

11.What is the purpose of Workmen’s Compensation Insurance?

The main goal is to safeguard both employers and employees. For employers, it covers expenses related to workplace injuries or illnesses affecting their employees. For employees, it provides essential financial support and security during workplace-related injuries.

12.Who is responsible for obtaining and maintaining Worker’s Compensation Insurance?

Employers must obtain and maintain a Worker’s Compensation Insurance policy. It is your responsibility as an employer to ensure the coverage complies with legal requirements and stays active and up-to-date.

13.What types of injuries or illnesses are typically covered by Worker’s Compensation Policy?

This insurance policy generally covers a variety of injuries and illnesses that occur in the workplace due to work-related activities during employment. This includes physical injuries and occupational diseases.

14.How is the premium for Worker’s Compensation Insurance determined?

The premium for this insurance policy insurance is determined based on various factors, such as the type of work, the number of employees and their salaries, claims history, the industry, and the location, among others.

15.What steps should an employee take if they are injured at work?

When an employee gets injured at work, they should promptly seek medical attention and inform the employer about the injury as soon as possible. It's important to provide full details about how the injury occurred and its nature, allowing the employer to file a claim under the Worker’s Compensation Policy.

16.What basic information the Insurer needs to provide quotation?

Typically, to provide a quotation, you need to provide your insurer with the following information:

  • Nature of work / Occupancy

  • No. of Employees

  • Monthly wages

  • Policy duration

  • Risk Location Address

  • Claim Experience of last 3 years with amount and count of claims

17.What is the process for filing a claim under Worker’s Compensation Insurance?

The first step is to inform the employer about the injury or illness. The employer will then request details of the accident. Afterwards, the employer will notify the insurance company, complete the claim form, and submit the necessary documents related to the accident.

The insurance company will then verify the claim's authenticity and decide whether to approve or deny it. If you have purchased this policy from ICICI Lombard, you can easily inform the claim, upload the required documents, and track the claim status using this link:

https://ilhc.icicilombard.com/Customer/ClaimIntimationOnlineTracking

18.What documentation is required when submitting Worker’s Compensation Policy claim?

You need to provide the following documents while filing for a claim:

  • Death Certificate

  • FIR / MLC / Police Final Report

  • Post Mortem, Viscera Report, or Cause of Death Certificate from Treating Doctor

  • Valid Age Proof of the Injured issued by Government Authority

  • WCM Award issued by Workmen Commissioner or WCM intimation letter with Indemnity Bond (Less than 9 Lakhs claim amount)

  • If payment to corporate - Payment acknowledgment done to WCM Commissioner

  • If payment required in the name of Workmen Commissioner - Payee name and DD/Cheque dispatch confirmation

  • If medicals are claimed - Medical bills, Prescriptions, Discharge Summary

  • Authorized Disability Certificate from Government Hospital (Civil Surgeon)

  • Hospital treatment papers confirming type and percentage of disability (X-Ray reports, Discharge Summary, Consultation notes)

  • Cancelled cheque with claimant/payee name printed or Passbook copy or NEFT form verified by bank

  • If payment required in the name of Employer - NOC (No Objection Certificate) declaration from the injured

See all

Disclaimers

  • ~ The premium starting from ₹750/year is applicable for Employee’s Compensation Policy. Actual premiums may vary depending on factors such as industry type, number of employees, wage structure, coverage options, and the insurer's underwriting criteria. The figure mentioned above is excluding GST.
  • * As on April 2020 to September 2025
  • ^ Numbers are for FY 2023-24 for Commercial lines business
  • # As on FY 2025 in the private sector
  • ** As per Employee’s Compensation Act 1923, and subsequent amendments of the said Act prior to the date of issuance of a policy.
  • @ Upon payment of additional premium, the following covers can be opted for.
  • + Available on payment of additional premium & in case of hospitalization for more than 24 hours
  • & Worker suffered absolute deafness — considered as 100% loss of earning capacity.
  1. Apnews
  2. Economics Times
  3. Economics Times
  4. Newagebd
  5. Hindustan Times
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