Policy Overview
This policy provides financial protection to the employer against legal and statutory liability arising from accidental injury, illness, disablement, or death sustained by employees during the course of employment in the insured’s business activities.
Who Can Take This Policy?
This policy is suitable for:
- Manufacturers and Industrial units
- Construction companies and Contractors
- Warehouses and Logistics operators
- Engineering and Fabrication units
- Hotels, Restaurants, and Service industries
- Commercial establishments employing workers/staff
Policy Description
The Policy covers legal liability of insured towards its employees (Non-NPS Registered) as per Workmen’s Compensation Ordinance 1931 (including subsequent amendments) or Employers’ Legal Liability (employees registered under the National Pensions Scheme), in respect of bodily injury and/or disease arising out of and in the course of employment.
- Accidental Medical expenses cover
- Repatriation cover for foreign employees
- Contract/casual labour inclusion
The Indemnity limit is determined based on the employer’s estimated annual wages/ payroll
The basis of indemnity includes:
- Total estimated annual remuneration/wages of employees covered under the policy
- Nature of occupation and risk exposure of employees
- Number of employees engaged in the business
- Chosen Limit of Liability/Indemnity under Common Law
Accurate declaration of wages and job classifications is essential for correct coverage.
This policy does not cover:
- Injuries not arising out of and in the course of employment
- Wilful misconduct or intoxication of employee
- Contractual liability beyond statutory or Common Law liability
- War, nuclear risks, and radioactive contamination
- Non-employee or third-party claims
- Fines, penalties, and punitive or exemplary damages
- Undeclared employees or unreported wages (unless agreed)
Insured's Duties
The Insured must:
- Maintain safe working conditions and comply with labour regulations
- Comply with all statutory and safety regulations
- Keep accurate records of employees and payroll
- Notify insurer immediately of any incident that may give rise to a claim
- Not to admit liability without insurer’s consent
- Inform Police wherever applicable
- Provide all supporting documents, medical reports, and wage records
- Allow inspection by insurer or appointed surveyor
Claims Procedure
- Notify insurer immediately upon occurrence of incident
- Submit completed claim form and supporting documents
- Inform insurer of any legal notice or summons received
- Do not admit liability or settle without insurer approval
- Claim assessment and settlement as per policy terms
Policy Period
- Typically, 12 months
- Renewable annually
Premium Factors
Premium is based on:
- Nature of business activity and risk classification
- Total annual wages / payroll
- Number and category of employees
- Claims history
- Extensions selected