Dear All,
One of my employee met with road accident while performing domestic work out side company campus and not during normal working hours. Company is having Policy of Personal Accident as well as Mediclaim of good amount and said employee is covered under the scope of PA polcy as well as Mediclaim scheme.
Now the question is whether employee will be entitled to get the benefit under the scope of Personal Accident Policy though the accident has no connection with duty or company’s work? (I suppose as there is coverage of 24 hours there shall be compensation from Insurance Company towards the absent days of employee and medical expenses)
His medical expenses are covered under the Medicalim Policy hence there is no issue on this front.
But the accident has no connection with his job or duty then also company is suppose to pass on the amount received towards the claim of Personal Accident from Insurance Company to employee??
Kindly share the practice being observed by the company under the circumstances as stated above.
Your early response will help me to take appropriate decision.
ACHR
From India, Mumbai
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1One of my employee met with road accident while performing domestic work out side company campus and not during normal working hours. Company is having Policy of Personal Accident as well as Mediclaim of good amount and said employee is covered under the scope of PA polcy as well as Mediclaim scheme.
Now the question is whether employee will be entitled to get the benefit under the scope of Personal Accident Policy though the accident has no connection with duty or company’s work? (I suppose as there is coverage of 24 hours there shall be compensation from Insurance Company towards the absent days of employee and medical expenses)
His medical expenses are covered under the Medicalim Policy hence there is no issue on this front.
But the accident has no connection with his job or duty then also company is suppose to pass on the amount received towards the claim of Personal Accident from Insurance Company to employee??
Kindly share the practice being observed by the company under the circumstances as stated above.
Your early response will help me to take appropriate decision.
ACHR
From India, Mumbai
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Dear Venkatachalapathi,
Thank you for your response. The policy is owned by the company. It is a Group Personal Accident Policy from the insurance company. All other members are also requested to participate in formalizing the policy for my company/employees.
Regards,
ACHR
From India, Mumbai
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Thank you for your response. The policy is owned by the company. It is a Group Personal Accident Policy from the insurance company. All other members are also requested to participate in formalizing the policy for my company/employees.
Regards,
ACHR
From India, Mumbai
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Dear Professional colleague,
Any company takes personal accident policy as a measure of employee welfare; that is a criterion for attracting and retaining a talent in one’s organisation. There are quite few expenses and benefits which can not be availed in Mediclaim policy and are covered in Personal accident policy like loss of pay during the leave/absence period or compensation for partial/permanent/temporary disablement; that is the reason companies are taking both the policies for employees. The company can not take away the money passed by insurance agency in favour of employee; legally and morally speaking; this is not a core business of organisation where organisation can take the amount as ‘income or gain’. I have worked with quite a few organisations or repute in India; and always had policy to forward the amount passed by insurance agency to concerned employee.
I think other collegues in this forum shall also back this opinion.
Hope this helps in taking appropriate decisions.
Regards,
Aaditya
From India, Mumbai
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Any company takes personal accident policy as a measure of employee welfare; that is a criterion for attracting and retaining a talent in one’s organisation. There are quite few expenses and benefits which can not be availed in Mediclaim policy and are covered in Personal accident policy like loss of pay during the leave/absence period or compensation for partial/permanent/temporary disablement; that is the reason companies are taking both the policies for employees. The company can not take away the money passed by insurance agency in favour of employee; legally and morally speaking; this is not a core business of organisation where organisation can take the amount as ‘income or gain’. I have worked with quite a few organisations or repute in India; and always had policy to forward the amount passed by insurance agency to concerned employee.
I think other collegues in this forum shall also back this opinion.
Hope this helps in taking appropriate decisions.
Regards,
Aaditya
From India, Mumbai
Acknowledge(0)Amend(0)
Generally, all good companies treat their employees as family members. This "family culture" fosters organizational commitment among employees and motivates them to stay and strive for the company. Such companies provide loans and advances against salary to employees in case of an emergent need for money.
For maintaining proactive Industrial Relations, it is also imperative to provide genuine welfare benefits to employees before it becomes their demand, resulting in disputes. These disputes are the driving force that creates the need to shift from individualism to collectivism, i.e., the birth of Trade Unions.
Providing welfare benefits after negotiations with Trade Unions never creates goodwill for the company.
That is why we should provide loans (which only remain as a debit in the employee's account without any deductions) to meet medical expenses and settle the loan account by adjusting the amount received from the Insurance Company later on.
To illustrate, Vardhman Spinning & General Mills Limited of Ludhiana not only provides such loan facilities to its workers but also, in rare cases, waives off the balance amount after the receipt of the insurance claim amount. Furthermore, this company even facilitates workers to litigate their case in Civil Courts under MACT by giving advance Advocate's Fees. Other good corporate houses have also shown similar examples in dealing with their employees in need.
Regards,
From India
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For maintaining proactive Industrial Relations, it is also imperative to provide genuine welfare benefits to employees before it becomes their demand, resulting in disputes. These disputes are the driving force that creates the need to shift from individualism to collectivism, i.e., the birth of Trade Unions.
Providing welfare benefits after negotiations with Trade Unions never creates goodwill for the company.
That is why we should provide loans (which only remain as a debit in the employee's account without any deductions) to meet medical expenses and settle the loan account by adjusting the amount received from the Insurance Company later on.
To illustrate, Vardhman Spinning & General Mills Limited of Ludhiana not only provides such loan facilities to its workers but also, in rare cases, waives off the balance amount after the receipt of the insurance claim amount. Furthermore, this company even facilitates workers to litigate their case in Civil Courts under MACT by giving advance Advocate's Fees. Other good corporate houses have also shown similar examples in dealing with their employees in need.
Regards,
From India
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Personal Accident Policy for Mah Govt employees 18.2.2017.pdf
Employee reference policy.doc