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Workmen Compensation Insurance, Statutory Employer Liability

Meet your statutory obligations under the Code on Social Security, 2020, which absorbed the Employees' Compensation Act 1923 on 21 November 2025. Covers employer liability for workplace death, permanent total and partial disability, temporary disablement and medical expenses incurred by workers.

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Statutory Requirements
️
Code on Social Security, 2020

Mandatory for specified categories of workers

Fatal Accidents

Lump-sum compensation to dependants

Permanent Disability

Percentage-based compensation schedule

Medical Expenses

Reimbursement of treatment costs

EC Act Compliant Structure
18+ Lines of Cover
Schedule IV Full Cover Included
6h Claims Response
Coverage

What Your Workmen Compensation Policy Covers

The Code on Social Security, 2020 creates strict liability for employers. Our policy structure matches every statutory obligation and extends beyond to cover legal defence costs.

Death Compensation
Lump-sum payment to dependants on accidental death of a worker in the course of employment, calculated as per Schedule IV of the EC Act.
Permanent Total Disablement
Compensation for injuries resulting in total and permanent incapacity to earn, calculated at 60% of monthly wages multiplied by the relevant age factor.
Permanent Partial Disablement
Proportionate compensation for loss of a specific body part or function as listed in Schedule I of the EC Act.
Temporary Disablement
Half-monthly payments during the period of incapacity, subject to EC Act limits, covering the worker's loss of income while unable to work.
Medical Expenses
Reimbursement of treatment costs, hospital charges and cost of prosthetics arising from a workplace accident.
️
Legal Defence Costs
Costs of defending employer liability claims filed before a Workmen's Compensation Commissioner, including legal representation fees.
Workplace safety and compensation specialists
EC Act Specialists
Advisory Approach

Understanding Your Liability Under the EC Act

The Code on Social Security, 2020 imposes strict liability on employers, you do not need to be negligent to be liable. Any accidental injury arising out of and in the course of employment triggers a compensation obligation, and the sums involved can be substantial.

We calculate the correct sum insured based on your actual payroll, including contract labour and piece-rate workers who are frequently omitted.
We structure the policy to cover sub-contracted workers on your premises, the most common gap in workmen's compensation programmes.
Our claims team manages the Workmen's Compensation Commissioner process from first notice to final order, ensuring no procedural default.
Target Clients

Who Needs Workmen Compensation Cover

Any employer with workers engaged in specified occupations under Schedule II of the EC Act has a statutory compensation obligation, regardless of fault.

01
Manufacturers & Factories
Factories employing workmen in processes listed in Schedule II of the EC Act are mandatorily required to maintain EC cover.
02
Construction Contractors
Building and civil engineering contractors with on-site labour including sub-contractors' workers across all project sites.
03
Mining & Quarrying Operations
High-risk occupations with mandatory cover under the Mines Act and EC Act, including underground and surface workers.
04
Transport & Logistics
Commercial vehicle operators and logistics companies with drivers, helpers and warehouse staff across their operations.
05
Hotels & Hospitality
Kitchen staff, housekeeping, maintenance and security personnel across hotel and restaurant operations.
06
Retail & Commerce
Retail establishments employing cleaning, delivery, security and maintenance staff on a regular or contractual basis.
Our Process

How We Structure Your EC Programme

A thorough workforce audit and disciplined claims management process ensures your programme is fully compliant and never leaves workers or employer exposed.

01
Payroll & Workforce Audit
We review your complete workforce including employees, contract labour, casual workers and piece-rate workers to establish the correct sum insured and avoid gaps.
02
Policy Placement
We source competitive EC policy terms from general insurers, negotiate the wage declaration basis and ensure all occupational categories are correctly classified.
03
Claims Management
On a reported accident, we co-ordinate with your HR team, manage the Workmen's Compensation Commissioner proceedings and handle insurer liaison through to settlement.
Key Benefits

What Sets Our EC Programme Apart

Statutory compliance, complete workforce inclusion and disciplined claims management, the foundations of a sound workmen's compensation programme.

️
Statutory Compliance
Correct cover structure and wage declaration ensures you are fully compliant with EC Act obligations, avoiding penalties and commissioner adverse orders.
Contract Labour Inclusion
We specifically include contract and casual workers in the policy schedule, the most frequently overlooked gap in EC programmes across India.
Commissioner Proceedings
Our team manages the procedural requirements of Workmen's Compensation Commissioner hearings on your behalf, from first notice through to final award.
Annual Wage Reconciliation
We reconcile your declared wages against actual payroll at year end and adjust the premium accordingly, no gaps, no overcharging.
FAQ

Frequently Asked Questions

Common questions about workmen's compensation insurance and the EC Act, answered plainly.

The Code on Social Security, 2020, which absorbed the Employees' Compensation Act 1923 on 21 November 2025, mandates compensation for workers engaged in the specified occupations it schedules. While the Act itself does not require insurance, most state labour departments and principal employers contractually require contractors to maintain valid EC policies. For factories and construction sites, it is effectively mandatory.
It depends on how the policy is structured. Our standard EC placement includes contract and casual workers engaged on your premises, with a declaration of their wages included in the sum insured. This must be explicitly included, it is not automatic under a standard policy.
Compensation for fatal accidents is calculated as 50% of monthly wages multiplied by the age factor from Schedule IV of the EC Act, subject to a minimum of ₹1,20,000. For permanent total disability, the equivalent multiplier is 60%. The policy should be structured to cover these full statutory amounts.
Wages for EC purposes include basic salary plus dearness allowance. Overtime, bonus and other emoluments are excluded. We calculate the sum insured based on the estimated annual wage bill for all covered workers and reconcile at expiry against actual payroll records.
Accidents during commuting between home and workplace are not covered under the EC Act unless specifically extended. Road accidents during work duties, such as a driver on duty or a worker travelling to a worksite, are covered as they arise in the course of employment.

Is your workforce correctly covered?

Request a complimentary EC Act compliance review. Most employers we assess have gaps in contract and casual worker inclusion.

Request a Compliance Review →
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