Employer’s Liability (Workmen’s Compensation)

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Employer’s Liability (Workmen’s Compensation)

It is the general practice for companies to arrange Workmen's Compensation Policies covering their employees. Workmen's compensation policy is issued by the Insurers covering the liability set out in the Workmen's Compensation Ordinance to pay compensation to employees for personal injury sustained due to an accident or disease arising out of course of the employment. Further, this policy covers liabilities arising out of common law as well. According to the Workmen's Compensation Ordinance, employers are liable to pay compensation for employees of all categories for injury or disease arising out of the business of the employer during the course of the employment. However, there is no legal requirement for employers to have insurance cover. Nevertheless, employers obtain WCI cover to protect their interest since they not only pass the WCI Ordinance liabilities to the insurer but also common law liability as well. 

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