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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