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Workplace Injury Claims Spike 31%
Worker safety is gaining focus as workplace injury claims among India's Micro, Small, and Medium Enterprises (MSMEs) surged 31% between FY2025 and FY2026. The BimaKavach Workplace Risk Report 2026, which analyzed data from over 6,000 MSMEs across various sectors, highlights this sharp increase and growing risks.
Why Claims Are Rising
The claim increase stems from both more accidents and broader economic trends. Higher business activity means more workers are on site, leading to potential incidents. Importantly, better awareness and digital tools have improved how claims are reported, meaning fewer incidents go unlogged than before.
Top Risks: Sectors and Seasons
Factories and manufacturing units face the highest number of injury claims, often from machinery accidents, slips, falls, or construction. IT and tech firms report very few claims, even with insurance. Seasonal factors are also key: the monsoon season (June-September) accounts for 43% of total claims, with July proving especially hazardous due to wet conditions and transport issues.
Insurance Use Shifts: Compliance to Safety Net
Most MSMEs (94.6%) still buy workmen's compensation insurance mainly to meet legal compliance. However, a noticeable shift is occurring as more firms start seeing insurance as a crucial safety net, not just a formality. Rapid digital processes support this, with about 69% of policies issued the same day and over 82% activated within three days, offering prompt protection.
Towards Proactive Safety
The report highlights that workplace risks are dynamic, changing with seasons, sectors, and operations. As businesses grow, the trend is moving from reacting to accidents to proactively preparing for risks. This foresight is expected to shape future workplace safety in India.