Workman Compensation act
Murugesh
(Querist) 27 June 2009
This query is : Resolved
Dear sir,
We are doing a turnkey project and we have only above supervisor catogery staffs in our company. In this situation which insurance is better to our employer as well as employee. Is workman compensation act or Personal accident?
Is workman compensation is mandatory?
Please explain.
H. S. Thukral
(Expert) 27 June 2009
Workmen's Compensation Act is not an insurance. It only creates liability of an employer in case of an accident resulting in injuries to the employee, during the course and out of employment. If the ESI Act is applicable to an establishment then the employer need not go for any other insurance to meet this unfortunate liability. ESI Act shall take care of that. In your case, since there is only one employee, ESI Act is not applicable. You can go for a General insurance of the employee to cover up this liability.
J K Agrawal
(Expert) 28 June 2009
Personal accident Insurance will not cover liability under workmans compensation act. You should take Policy covering all risk of WC. It is better for the both.
Please keep in mind that WC policy will not cover accident which is not related to his occupation where as personal accident policy covers all risk. Again it is to be noted that personal accident policy covers risk in case of death or total disablement of at least one limb to it is not a good policy.
Murugesh
(Querist) 29 June 2009
Dear Sir, Thanks for your reply.
Still I have confusion, we have to pay more premium for insurance cover under WC compare to PA.
Also our staffs salary above 20k pm. all engineers and supervisors catogery.
As a management side we need to look the cost implication as well as employee benefit also.
Please tell me which is better in cost wise as well as employee wise.
