The workmen's compensation insurance is the primary method by which an employer can demonstrate the ability to meet the obligations imposed by the worker’s compensation statutes. It is compensation payable under a scheme set out in the Workmen's Compensation Act of India, monitored by the Ministry Of Labour. The policy covers statutory liability of an employer for death or bodily injuries caused to employees due to accidents arising out of and during the course of employment.
Workers compensation insurance serves two purposes:
- It assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work .
- And it usually protects employers from lawsuits by workers injured while working.