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EMPLOYEES COMPENSATION POLICY

 

EMPLOYEES COMPENSATION POLICY

      Compensation is a tricky term, questions as to what is the exact sum, how much is too much, is it adequate for the loss and trauma suffered remain unanswered. Employers are bound to compensate the employee if   he/she suffers death or injury while on duty. It is a statutory obligation. The amount of compensation is decided based on the court’s award which takes into cognizance the age of the deceased/injured employee, dependency and gravity in case of injury.

Workmen’s Compensation insurance is a method to satisfy the obligations imposed by the worker’s compensation Statutes. Earlier known as the Workmen Compensation Act 1923 is now amended and renamed as Employees Compensation Act (E C Act ) 1923

Important E C Act Provisions:

E C Act now covers all Employees (earlier name Workmen) including Clerical and Casual Employees who are not covered by ESI Act.

Employment injury means personal Injury caused to an employee by accident arising out of and in the course of his employment.

Structured Compensation payable by employer for

Ø  Death of Employee

Ø  Permanent Total Disability 

Employer shall also reimburse the employee for:

·         Actual medical expenses incurred by him for treatment of injuries caused during the course of employment.

·         Funeral expenses are also payable

How is the sum insured calculated?

The policy does not have any SI but covers as per EC Act, 1923 limits. Sum Insured for premium calculative purpose will be the gross wages paid for the insured employees. Premium is charged on the gross wages.

For calculation of compensation, wages shall be standard wages as laid out in the Act as amended from time to time

E C Commissioner shall dispose of cases within 3 months of receipt of reference.

Employees Compensation Policy has following features.

EC policy is issued on unnamed basis and premium is adjustable on expiry with actual wages paid.

What is the cover?

The liabilities covered are as per EC Act, 1923 and Common Law.

             E C Act provides for employer to pay compensation for employment injuries on No-fault Basis.

Additional covers are available for

   Occupational Diseases -  Occupational Diseases are defined in the Act.

               Medical Expenses.

               Employees of Contractors.

   Employees of Sub-Contractors.

WC policy can be issued normally for one year but can be issued for project periods that is more than 12 months. Employees Compensation policy is mandatory for an employer and for regulatory compliance.

 

 

 

Disclaimer:   

Zen Insurance is an IRDAI registered broker which facilitates quick & accurate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products

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