An employer must compensate workers who receive injuries or encounter occupational diseases during work. Such compensation is payable under the Workmen’s Compensation Act.
An employer may obtain an insurance policy to cover such liability. The premiums are usually payable based on wages. Therefore, it is also known as ‘Employers’ Liability Insurance.
Standard Cover in a Workmen Compensation Policy
The policy covers any insured employee who may sustain personal injury by accident or disease arising out of and during his employment. The company will indemnify the insured against all sums for which the insured is held liable to pay to his employees under Workmen’s Compensation Act, 1923, the Fatal Accidents Act 1855, and Common Law.