To safeguard organisations from the threat of costly lawsuits, insurers offer workmen’s compensation policy. It is an insurance policy which covers statutory liability of an employer for death, bodily injury or occupational diseases sustained to employees. It is also known as the ‘Employees Compensation (Amendment) Bill, ‘Employer’s Liability Insurance and ‘Worker Compensation Policy’.The workmen’s compensation policy is the primary method by which employers can show their ability to satisfy the obligations imposed by the worker’s compensation statutes. As employers pay for this insurance, no contribution is required to be made by employees.As per the Workmen Compensation Act in India, the main employer or contractor is liable to pay compensation to employees in case of any mishappening at the workplace.