- The Policy covers the statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment
- The Act provides a very wide meaning for the term ‘arising out of and in course of employment’ (for example a workman starting from his house to the work place is treated as in course of employment). Death of or injuries arising out of an employee’s own negligence are also treated as ‘arising out of employment’
Being a legal liability policy, the claim amount payable is the amount of compensation as stipulated in the Workmen Compensation Act. An employee who is engaged for casual duties (casual not by time) is not a workman within the meaning of the Act. Those engaged for the insured’s business, profession or occupation are ‘workmen’
- Premium rates are based on the nature of duties performed as contained in the Workmen’s Compensation Tariff
- The premium is calculated on the basis of annual estimated wages disbursed to the workmen which is also the sum insured. The premium is based on wage estimates and the actual would be worked out at the end of policy. Adjustments are made for the period and for extra premium or refund as the case may be. It is therefore an adjustable policy
Completed proposal form furnishing details of the total number of workmen engaged for each type of duty and the annual estimated wages in respect of each group. As the sum insured selected is on estimated wages basis, the actuals are to be worked out at the end of policy period and premium adjusted as is necessary.
Why You Must Buy The IGI Workmen’s Compensation Policy
The liability of an employer being absolute by statute for the death of or bodily injuries or occupational diseases sustained by the workmen ‘arising out of and in course of employment of the employee’. This policy is suggested for all employers, with a workforce of a minimum of ten members.