Employers are legally required to cover employees for workplace injuries. Workers compensation insurance protects both you and your team. Learn what's mandatory and what's recommended.
Workers Compensation Insurance
Employers are legally required to cover employees for workplace injuries. Workers compensation protects both you and your team.
What it covers: medical expenses, disability benefits, death benefits, and rehabilitation costs for workplace injuries and illnesses.
Premium: based on employee count, salary, and risk level. ₹500–₹2,000/employee/year is typical. Construction and other high-risk work: ₹2k–₹5k/employee/year.
Legal Requirement
Employees' State Insurance (ESIC) is mandatory with 10+ employees in manufacturing or 20+ in services. Private workers compensation can supplement or replace ESIC for better coverage.
That's the legal baseline. What your own policy pays per injury—and who it actually covers—is in the wording. Check what YOUR policy actually says.
Frequently asked questions
Is workers compensation mandatory?
Yes, via ESIC for eligible businesses (10+ employees manufacturing, 20+ services). Private workers compensation can supplement ESIC or cover ineligible employees.
What's covered in workers compensation?
Workplace injuries, occupational diseases, death from work accident, disability benefits, medical expenses, rehabilitation. Excludes: Injuries outside work, self-inflicted, intoxication.
How much does it cost?
ESIC: 1.75% of employee salary (shared employer + employee). Private: ₹500–₹2,000/employee/year (low risk), ₹2k–₹5k/employee/year (high risk like construction).