The insured should be in your payroll. In the eventuality of claim, the insurance companies verify your attendance, paysheet and appointment procedures.
I share my experience while working on a contracting company. We covered only 50 workmen whereas in actual we did employ around 125 workmen. One worker met a fatal accident while on duty. We preferred a claim based on the compensation derived by WC commissioner, labour Office. But our claim was rejected as the insurance companies had discovered that we had engaged more workmen than the numbers mentioned in WC policy. Principal employer deducted the compensation payable from our bills and deposited with the Labour commissioner.
Regards
R.Ponraj
From India, Lucknow
604I share my experience while working on a contracting company. We covered only 50 workmen whereas in actual we did employ around 125 workmen. One worker met a fatal accident while on duty. We preferred a claim based on the compensation derived by WC commissioner, labour Office. But our claim was rejected as the insurance companies had discovered that we had engaged more workmen than the numbers mentioned in WC policy. Principal employer deducted the compensation payable from our bills and deposited with the Labour commissioner.
Regards
R.Ponraj
From India, Lucknow
WC Policy on the basis of the salary sheet (total wages drawn). You have to file the monthly returns of workers leaving and joining together with the wage bill. The premium is calculated on the basis of wage bill and the adjustments of difference of premium are carried on every month. You have to give the particular of the deceased employee (wages/age/name/death certificate and other documents).
From India, Chandigarh
From India, Chandigarh
Dear Shri Javed,
I want your Email ID & Cell No.to share with you the knowledge.You are seems to be compitent enough under labour laws issue.
Thanks
Mangesh Wakodkar
9766422771
From India, Pune
I want your Email ID & Cell No.to share with you the knowledge.You are seems to be compitent enough under labour laws issue.
Thanks
Mangesh Wakodkar
9766422771
From India, Pune
Hello Jawed,
Pl share your views/knowledge on the following:
Is there any legal provision for having "Site specific WC Policy" and "All India Valid" policy? Also share industry practices on the same.
Regards,
From India, Pune
Pl share your views/knowledge on the following:
Is there any legal provision for having "Site specific WC Policy" and "All India Valid" policy? Also share industry practices on the same.
Regards,
From India, Pune
Dear Gaurang Sheth.
First of all one thing I need to mention before going into ur question:
that it is no where mentioned in WC Act that WC Policy is to be done from Insurance company or not. There is only one thing and that is Compensation paid to an Employee for employment injury arising out of and in the course of employment. it is irrelevant whether you had your employees covered under WC Insurance Policy or not.
It is very much dependent in your company’s requirement and working area that whether you will go for “Site specific WC Policy” or “All India Valid” WC Insurance Policy.
There are some company (mainly construction companies) who use to work in all over India because of their job demands. So it will be better for that company to go for All India Valid Insurance Policy because they do not know where and how many workers will be engaged in a particular site and further they do not know where they will have to work in India in a year. And for that insurance coverage the premium amount is very high in respect to the Site specific Policy.
There are some companies which operates in only place and their employees are not required to go to other places for work then it will be good to go for Site Specific Insurance Policy.
There is no risk involved for the Principal Employer as far as the All India Insurance Policy is concerned as like Site Specific Policy if the Contractor is maintaining all the documents necessary in case of accident. And further the Principal Employer may include a clause under Work Order/Purchase Order that in case of accident the total financial and administrative liability will have to be borne by the Contractor and in failing of such clause, the amount which is required to be paid by the PE will be deducted from their bill.
Regards.
Jawed Alam.
From India, Dhanbad
First of all one thing I need to mention before going into ur question:
that it is no where mentioned in WC Act that WC Policy is to be done from Insurance company or not. There is only one thing and that is Compensation paid to an Employee for employment injury arising out of and in the course of employment. it is irrelevant whether you had your employees covered under WC Insurance Policy or not.
It is very much dependent in your company’s requirement and working area that whether you will go for “Site specific WC Policy” or “All India Valid” WC Insurance Policy.
There are some company (mainly construction companies) who use to work in all over India because of their job demands. So it will be better for that company to go for All India Valid Insurance Policy because they do not know where and how many workers will be engaged in a particular site and further they do not know where they will have to work in India in a year. And for that insurance coverage the premium amount is very high in respect to the Site specific Policy.
There are some companies which operates in only place and their employees are not required to go to other places for work then it will be good to go for Site Specific Insurance Policy.
There is no risk involved for the Principal Employer as far as the All India Insurance Policy is concerned as like Site Specific Policy if the Contractor is maintaining all the documents necessary in case of accident. And further the Principal Employer may include a clause under Work Order/Purchase Order that in case of accident the total financial and administrative liability will have to be borne by the Contractor and in failing of such clause, the amount which is required to be paid by the PE will be deducted from their bill.
Regards.
Jawed Alam.
From India, Dhanbad
I differ with Jawedalam,
In some cases, the nature of work will be labour intensive. As anyone can not predict the accident and its attendant consequences. It was always prescribed in such cases that WC coverage is must. Otherwise, the pricipal employer is liable for the compensation arising out of such claims.
The WC policy can be taken for multiple locations but all job locations shall be furnished to the insurance companies.
Regards
R.Ponraj
From India, Lucknow
In some cases, the nature of work will be labour intensive. As anyone can not predict the accident and its attendant consequences. It was always prescribed in such cases that WC coverage is must. Otherwise, the pricipal employer is liable for the compensation arising out of such claims.
The WC policy can be taken for multiple locations but all job locations shall be furnished to the insurance companies.
Regards
R.Ponraj
From India, Lucknow
Dear R.Ponraj
What u r saying that is correct but its only prescribed not complusary/medatory in WC Act. Just take our plant's (thermal Power Station) example where the labour structure is like:
1. Permanent Employee: Around 950 nos.
2. Contract Labour : Around 1500 nos. on daily basis at Operation & Maintenance Site.
3 Contract Labour : Around 3000 nos. on daily basis at Construction Site for new units of 250 MW X 2 EACH.
Our Permanent employees are not covered under any WC Insurance Policy.
Contract labour (O&M and Construction worker's WC Policy is done by Contractors)
But that does not mean that in case of accident to our permanent employee, we do not pay compensation as per WC Act. Our head office pay all the compensation amount from its own.
that is why i said......
waiting for ur suggestion if our company is doing wrong..
regards.
Jawed Alam
From India, Dhanbad
What u r saying that is correct but its only prescribed not complusary/medatory in WC Act. Just take our plant's (thermal Power Station) example where the labour structure is like:
1. Permanent Employee: Around 950 nos.
2. Contract Labour : Around 1500 nos. on daily basis at Operation & Maintenance Site.
3 Contract Labour : Around 3000 nos. on daily basis at Construction Site for new units of 250 MW X 2 EACH.
Our Permanent employees are not covered under any WC Insurance Policy.
Contract labour (O&M and Construction worker's WC Policy is done by Contractors)
But that does not mean that in case of accident to our permanent employee, we do not pay compensation as per WC Act. Our head office pay all the compensation amount from its own.
that is why i said......
waiting for ur suggestion if our company is doing wrong..
regards.
Jawed Alam
From India, Dhanbad
Dear Jawed,
Permanent employees are covered under Group Insurance Policies. What we are discussing is about workmen Compensation policy. I am also from Power sector and we engage contract labour. We insist all the sub-contractors to cover their workmen under WC as most of the sub-contractors are not financially healthy to take care of compensation arising out of any eventualities. I agree that WC coverage is not mandatory as per law.
Regards
R.Ponraj
From India, Lucknow
Permanent employees are covered under Group Insurance Policies. What we are discussing is about workmen Compensation policy. I am also from Power sector and we engage contract labour. We insist all the sub-contractors to cover their workmen under WC as most of the sub-contractors are not financially healthy to take care of compensation arising out of any eventualities. I agree that WC coverage is not mandatory as per law.
Regards
R.Ponraj
From India, Lucknow
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WC Amendment Act 2009.doc
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