As per the Employees Compensation Act, an employer is liable to pay compensation if personal injury is caused to an employee due to an accident arising out of and in course of the persons employment.Workmens Compensation insurance can be called in many different ways as shown below.* An injury does not result in the total or partial disablement of the employee for more than 3 days.* An injury doesnt result in death or permanent total disablement caused by an accident under the influence of drink or drugs.* In case of accidents caused by wilful disobedience of the rules by the employee and wilful removal of safety guards, the employer is not liable to pay compensation.