Employee Compensation

Scope of Cover
This insurance covers legal liability of employees under the Workmen’s Compensation Act 1923 (amended), Indian Fatal Accidents Act 1855 and at Common Law. The cover includes all costs and expenses incurred by the insureds with the Insurance Company’s consent in defending any claim for compensation preferred under any of these Acts.

The Indian Workmen’s Compensation Act 1923 provides for the payment of Compensation by the employee to his employees (for their dependents in the event of fatal accidents) if personal injury is caused to them by accidents arising out of and in the course of their employment.

According to the Workmen’s Compensation (Amendment) Act 2000, the maximum sum payable is:

Fatal injury – Rs. 457,080.00
Permanent Total Disablement – 548,496.00
Permanent Partial Disablement – depending on the extent of incapacity
Temporary Disablement – Half-monthly compensation

Optional Extension
There is provision to cover certain disease mentioned in part “C” of schedule III of Workmen’s Compensation Act.

Exclusion
The insurance does not cover any interest or penalty, which may be imposed on insured for failure to comply with the requirement of the Workmen’s Compensation Act 1923, as amended.