This insurance policy is essential for each and every employer, either as the principal or the contractor who engages "workmen" as defined by the Workmen's Compensation Act to cover his liability towards them under statutory and Common Law. This insurance policy protects the insured party from legal liabilities against injury or death of any of his employees who is a "workman" as defined by the Workmen's Compensation Act.

Risks covered
This insurance policy is necessary for every employer since it indemnifies him against his legal liability as an "employer" towards accidental or fatal injuries sustained by his work men during work.

On extra payment of premium, medical, surgical and hospitalisation expenses including transportation costs are also covered.

Liabilities that may arise owing to diseases mentioned in Section III (C) of Workmen's Compensation Act during the course of employment are also covered.

Compensation Offered
This insurance policy stands subject to the provisions of the Workmen's Compensation Act. The sum insured is based on the annual wages of the workmen during the insurance period.

So the compensation is adjusted at the end of the policy period or submission of the statement of actual wages paid during the insurance period.

The policy can also cover thze medical expenses of the employer's workmen up to the limit specified under the policy.