Question: Workmen compensation policy mandatory?

Yes, Workmen Compensation (Employee Compensation) policy is mandatory if you employ workers such as laborers, helpers, drivers, or staff. As per law, the employer is liable to compensate employees for injury, disability, or death arising out of work. This policy protects the employer from legal and financial liability. If you have no employees, the policy is not required.

Yes, Workmen Compensation (Employee Compensation) policy is mandatory in most cases. If you have employees, workers, helpers, drivers, cleaners, laborers, or staff working for you and they get injured, disabled, or die during work, you are legally responsible to pay compensation. This rule comes under Indian labour laws. Even if you have only 1 worker, the policy is usually required. Why this policy is important: It protects you (employer) from paying huge amounts from your own pocket Medical expenses, disability, or death compensation are covered by insurance Without this policy, authorities can impose penalty or legal action When it is compulsory: Construction, factory, shop, office, transport, warehouse, etc. Drivers and helpers (very important) Contract or daily wage workers also included If you have no employees at all, then it is not required. If your agent is not explaining properly, you should: Ask clearly: “Is my business covered under employee compensation law?” Or take advice from another agent or advisor