Is WMC policy mandatory for Chemical industry?
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Hi Pardeep,
Yes, it's applicable. The then 'Workmen Compensation Act 1923 has been renamed as the 'Employees Compensation Act'. Under this establishments covered are stipulated in the 'Definitions' clause 2 of the Act which reads as follows:
---------
THE EMPLOYEE’S COMPENSATION ACT,1923
[as amended through EC(Amendment)Act,2017]
PREAMBLE.-
An Act to provide for the payment by certain classes of employers to their *[Employees] of compensation
for injury by accident.
Whereas it is expedient to provide for the payment by certain classes of employers to their workmen of
compensation for injury by accident;
It is hereby enacted as follows:--
1. Short title, extent and commencement.-(1) This Act may be called the *[Employee's] Compensation
Act, 1923.
(2) It extends to the whole of India .
(3) It shall come into force on the first day of July, 1924.
2. Definitions.- (1) In this Act, unless there is anything repugnant in the subject or context,--
(e) "employer" includes anybody of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a *[employee] are temporarily lent or let on hire to another person by the person with whom the *[employee] has entered into a contract of service or apprenticeship, means such other person while the *[employee] is working
for him;
(f) "managing agent" means any person appointed or acting as the representative of another person for the
purpose of carrying on such other person's trade or business, but does not include an individual manager
subordinate to an employer;
xxxx
Also for your immediate ref. the full text of the act is attached which will be handy to you in implementing its provisions together with amendments issued from time to time.

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Dear Pardeep,
The Employees Compensation Act,1923 does not make it compulsory for the employer to take up any insurance policy to cover his legal liability towards any compensation under the Act.
Thanks for the reply.
I want to know more thing, Is WCP covers the accident outside the factory/company premises?
Hi Pardeep,
As you know the purpose & scope of the WC legislation to address the remedy that the employers have to facilitate to their employees in the event of physical losses, damages to the persons such as from temporary disablement to the permanent disablement including death etc., which "arising while he/she on duty & in the course of employment". This specific definition emphasizes the impact period during which he/she is inside the premises/precincts and also to & fro travel between work place & residence. There are enough no.of judgments passed by the apex court(s) making clear majority of doubts arose in the context. This piece of legislation in a way implies & making the employers accountable for the damages suffered by their employers either due to their negligence w.r.t. not ensuring due safety measures in place to prevent accidents of any reason or unforeseen circumstances. To get over the probable considerable financial & social implications in case of grievous injury if sustained a prudent employer should adequately ensure insurance cover by properly availing pertinent clauses of policy so that major consequences are taken care of adequately. Some may think why such insurance cover is necessary when there is no scope of such serious accidents within the premises. This is answered thus, ambulances, fire fighting brigades are inevitable though they are seldom used.
Dear Pardeep,
I think the above answer of Mr. Kumar covers the entire points of employment accident as well as the necessity of taking insurance against such employment accidents the happening of which may be mostly by the very nature of ones employment. Now, to be brief, though the contingency of the occurrence of an employment accident is generally confined to the place and time of work, at times the question whether the accident is one arising out of and in the course of the victim's employment would be determined , as rightly pointed above, based on the doctrine of notional extension of time and place of employment. Simply put when the accident happens somewhere outside the work place or working hours and as a result of which an employee gets injured, it is a kind of positive analysis into the question whether the time and place of occurrence of accident could be logically connected to the victim's employment. IF the answer is affirmative, the employer would be liable to compensate.
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