Dear All:

Our company is registered under shops & establishments act. I wanted certain details with regard to workmen's compensation in the event of an accident while the employee is on duty whether in or outside the premises of the company.

Our work conditions does not have any scope for occupational diseases. Now we wonder if a personal accident policy would suffice to cover the liability of the company in the above case?

I guess legally it does not really cover the liability but could be worked out with a mutual agreemnt with the employee by taking his consent in writing that in such events, the compensation from the insurance company shall be treated/hold good as the the compensation from the employer and that he will not approach the labour court for any further compensation from the employer.

I would like to know if any of the companies are doing this and if yes, what is the format of agreement?

To my knowledge the highest limit of compensation under WCA is 4 laks.

Please correct me if I am wrong at interpreting WCA in any way.

Thanks and looking forward to a valuable response at the earliest.

23rd June 2005
The Indian Workmen's Compensation Act 1923 provides for the payment of compensation by the employer 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.

The maximum compensation payable is upon the following scale (as per W.C. Amendment Act 2000)

* Fatal Injury Rs.4,57,080

* Permanent Total Disablement Rs.5,48,496

* Permanent Partial Disablement : According to incapacity

* Temporary Disablement : Half monthly compensation

Bajaj Allianz General Insurance Company Limited policies give an employer any of the following two forms of cover :

* Indemnity against the Employers legal liability to his Employees under the Indian Workmen's Compensation Act 1923, and subsequent Amendments of the said Act prior to the date of issue of the policy, under the Indian Fatal Accidents Act, 1855, and at common Law.

* Indemnity against the Employers legal liability to his Employees under the Indian Fatal Accidents Act, 1855 and at common law.

In addition, the company bears the costs and expenses incurred with its written consent in the settlement of claims.


Other than Bajaj Alliance, some other companies such as National India Assurance Company also provides similar insurance.... Check up
29th June 2005 From India, Ahmadabad
what was the monthly wages of a workman for the purpose of 4(a) and (b) as on 05-10-2009 for computation of compensation under workmen’s compensation act, 1923
8th July 2010 From India, Delhi
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