Employee Compensation protects an organization from the threat of expensive lawsuits and large compensation payouts. The policy covers an employer's legal liability for the death of or bodily injuries or occupational diseases sustained by workmen in the insured's immediate service and arising out of and in the course of employment. It is compensation to be paid under a scheme set out in India's Employee Compensation Act, monitored by the Ministry of Labour.
The employer’s legal liability under the Act to pay compensation to employees not covered under the ESI Act for bodily injury or disease sustained/contracted out of and in the course of employment is covered by this policy. Liability to employees under the Indian Fatal Accident Act 1855 and at Common Law is also covered under the policy.
