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Insurance policies for human resources in an organisation

 

                                       


Of all the capitals invested in an industry, human capital is the top most. Human resource is largely acclaimed to be the wealth behind a successful organisation. Employees are the real cogs in the wheel who keep the industry running despite setbacks. In such a scenario, employee retention assumes significance which in itself is a huge task. A disgruntled employee can mar a company's reputation or  impede the seamless progress of a business. We hear a lot of organisations facing employee attrition  i.e losing talented, high-performing, high value employees. Employers must engage the employees and prevent attrition with various programmes and employee benefits such as:

  • Training and development 

  • Award and rewards

While there are numerous factors for employee attrition, a poor compensation scheme or lack of proper employee benefit program are major reasons. Another factor for employee attrition is the way companies treat their employees when they face troubles during the course of their employment.

Employers are liable in the event of unforeseen accidents to employees while in their service.  Various group policies facilitate in adding  value to the work force and in discharging employers statutory obligation. Some are detailed below:

  • Group Personal Accident 

  • Employees Compensation

  • Group Health Insurance

Group Personal Accident Insurance  covers death, disablement ,bodily injuries to the employee resulting solely and directly from an accident caused by external violent & visible means within 12 months of its occurrence. Accident may include events like Rail/Road/ Air accidents,injury due to any violent collision or fall etc.,

What is the cover under GPA policy?

  • Table I    :  Death cover

  • Table II   :  Death and Permanent Total Disablement

  • Table III  : Death Disablement & Temporary Total Disablement

Medical expenses  can be covered on payment of additional premium .This is a world wide cover & 24  hour cover. Compensation is paid to the nominee as detailed in the proposal form.     

Employees compensation Policy:

Employees  Compensation Act Provisions stipulates that all employees who are not covered by ESI Act   must be covered under EC policy; this includes Clerical and Casual Employees. Coverage is for employment injury, which means any personal Injury caused to an Employee by accident arising out of and in the course of his employment. Employees Compensation policy is mandatory for an employer as per Act and for regulatory compliance.

The liabilities covered are as per EC Act, 1923  and  Common Law. E C Act provides for employers to pay Compensation as structured in the EC Stipulations, for employment Injuries on No-fault Basis.

Compensation is payable by Employer for:

  • Death of Employee 

  • Permanent Total Disability  

  • Actual Medical Expenses incurred by the employee for treatment of injuries caused during the course of employment.

  • Funeral Expenses are also payable 

What is the Sum Insured under E C Policy ?

Sum Insured is calculated based on the Gross wages paid for the insured Employees. Premium is charged on the Gross Wages. EC policy is also issued on an unnamed basis and premium is adjustable on expiry of policy by reconciling the policy Sum Insured with actual wages paid. Additional premium paid is refunded provided there is no claim.

Medical Expenses are included on additional premium payment.

Group Health covers:

What is the cover offered under Group Health Covers?

  • Hospitalization, Pre  & Post hospitalization, Domiciliary Hospitalization & Health checkups.

  • Sum Insured chosen, may be Individual or Floating  depending on the family type and size & age.

  • Group cover is  an employer's choice to cater  to employee benefits with Maternity cover for young employees and their spouses.

  • Group Health insurance  can be structured as per specific requirements. Further health insurance for employees working abroad can be covered from India at a very competitive cost subject to certain conditions.

Section 80D of the Income Tax Act states that the employer paying group health insurance premiums may avail of tax benefits from the taxable income.

Other Covers :

  • Retirement covers

  • Group Gratuity covers

  • Group Annuity  Covers

The purpose of compensation schemes  is to motivate employees to perform better and for regulatory compliance. A good compensation scheme can meet both these goals. Compensation plans can improve employee loyalty and encourage people to stay with the company.

Such strategies also increase goodwill and brand image of the company and employers can avail various  tax benefits as these premiums can be shown as an expense by the employer. Finalizing the appropriate insurance cover needs planning and strategy.

We at Zen Insurance assist in choosing the right Insurance cover to suit your needs . Please contact us for assistance.

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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