In India, the Workmen's Compensation Insurance policy is embedded with Employer Liability. It provides coverage for employer's liability arising under the i) Workmen's Compensation Act, ii) Fatal Accidents Act and iii) Common Law. While compensation to workmen is statutory under law, insurance thereof is not compulsory. However, since the WC policy includes both Statutory and Common Law liabilities, most corporate prefer to incept the same. The Common Law section duly secures the liability of the employer since the liability is Unlimited.
Earlier the WC Policy was covering only 'Workers' and now with the recent amendments, the ACT itself is read as "THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009" and wherever "workman" or "workmen" is mentioned in the entire Act, it has been replaced by "Employee", thus widening the coverage