Dear All,
The below information I got from Oriental Insurance Company.
Hope will help you all HR Professionals
Diffference between WC & PA is given :
PA Covers compensation against Accidental Injury or Death as agreed in the policy and
Mediclaim covers reimbursement against hospitalisation upto the limit covered under the policy.
From India, Pune
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494The below information I got from Oriental Insurance Company.
Hope will help you all HR Professionals
Diffference between WC & PA is given :
- WC Policy is a Legal Liability Policy whereas in PA Policy certain Agreed Benefits are granted.
- W.C. Policy covers Legal Liability towards employees in case of death or injury sustained by them during the course of Employment.
PA Policy covers Accidental bodily injuries resulting solely and directly from accident caused by EXTERNAL & VIOLENT means resulting into death or disablement any time during the period of Policy. - In case of WC Policy amount of compensation depend on the nature of injury in case of injury cases. In case of Fatal accidents the compensation is worked out by taking the factors like Age and Income of the person Injured/died. Thus it varies from case to case.
In PA Policy certain Agreed Benefits are given as per cover taken in the policy. - If PA Policy is taken for higher Sum Insured, it may cover compensation payable as per WC Policy; if it is taken for lower Sum Insured, the Award under WC may be more than the cover taken under WC.
- The WC Policy covers occupational diseases that might be contracted by workers arising out of and in the course of employment (additional premium of 25%). PA Policy merely covers injury due to accidental external and violent means. The slow process of an occupational disease is totally outside the scope of the PA Cover..
- Premium rates under WC Policy depend on the nature of duties in which the workers are involved;
whereas in PA Standard Rates are charged for all exceps for Persons working in underground mines, Explosives Magazines, Workers involved in electrical install-ation
with high tension supply,'Jockeys, Circus personnels, persons e,pgagedin activities I,ikeracing on wheelsor horse back, big game hunting, Mountaineering, Winter sports, Sking, Ice hockey, Ballooning, Polo andpersons engage,d in occupations of similar hazard.
PA Covers compensation against Accidental Injury or Death as agreed in the policy and
Mediclaim covers reimbursement against hospitalisation upto the limit covered under the policy.
From India, Pune
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Hi,
In our factory, we typically mandate that every contract workman entering the plant and earning less than 15000 must have an ESI registration. For contract workmen earning more than 15000, we simply ensure that they have some other medical insurance policy (generally covering 1 lakh mediclaim and up to 4 lakh for a group accident policy). In this case, will we have any liability as the Principal Employer if an accident occurs inside the plant?
From India
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In our factory, we typically mandate that every contract workman entering the plant and earning less than 15000 must have an ESI registration. For contract workmen earning more than 15000, we simply ensure that they have some other medical insurance policy (generally covering 1 lakh mediclaim and up to 4 lakh for a group accident policy). In this case, will we have any liability as the Principal Employer if an accident occurs inside the plant?
From India
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Yes, 4 lakh is not enough in case of death and permanent disability.
As per the WC Act, for the youngest employee with accurate calculation, the compensation is approximately Rs. 11,00,000. Thus, your PA cover should be more than 11 lakh. Otherwise, simply take a WC policy as it will also cover elements like heart attacks in the office, paralysis, which will not be covered by a PA policy. I am sure about this, but as it is a sensitive issue, I would advise talking to a lawyer and a highly expert insurance advisor.
Regards,
Manoj Chaudhari
From India, Mumbai
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As per the WC Act, for the youngest employee with accurate calculation, the compensation is approximately Rs. 11,00,000. Thus, your PA cover should be more than 11 lakh. Otherwise, simply take a WC policy as it will also cover elements like heart attacks in the office, paralysis, which will not be covered by a PA policy. I am sure about this, but as it is a sensitive issue, I would advise talking to a lawyer and a highly expert insurance advisor.
Regards,
Manoj Chaudhari
From India, Mumbai
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(Fact Check Failed/Partial)-The information provided in the user reply is incorrect. Workers' Compensation Act does not have a fixed compensation amount; it varies based on factors such as age and income. Heart attacks and paralysis in the office are covered under workers' compensation but not under personal accident policies.
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Please guide me as to what is the procedure to take WC policy for contract workmen working at my plant. Is it possible to take a blanket unnamed policy to cover anyone who enters the plant?
From India
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From India
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(Fact Check Failed/Partial)-The procedure to take a WC policy for contract workmen working at your plant involves contacting an insurance provider to customize a policy for your specific needs. Blanket unnamed policies to cover anyone entering the plant are not typical in workers' compensation insurance.
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WC is an unnamed policy. Yes, you can take a WC unnamed policy. Contact any insurance advisor for the same. Provide your details such as wage and nature of work, obtain 2-3 quotations, pay the premium.
Manoj Chaudhari
From India, Mumbai
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Manoj Chaudhari
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Workers' Compensation (WC) is not an unnamed policy. It is a specific type of insurance that provides benefits to employees who are injured or become ill due to work-related causes. Additionally, contacting an insurance advisor for WC insurance is recommended, but the process and details provided in the reply are not entirely accurate.
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I am slightly confused. Will the premium be paid by the Principal Employer or Contractor?
He has small vendors providing manpower for temporary work (sometimes for just 2-3 hours) for temporary tasks, for instance, to repair some furniture or do some waterproofing work. In most cases, these people do not have PF or ESI registration. How should we handle such cases?
Second question: In our company, all employees earning more than 15,000 are covered under a Mediclaim Policy with coverage of 1.5 lakhs and a Group Accident Policy with a maximum coverage of up to 10.5 lakhs. But we have not taken a WC policy. Does that mean that we'll be liable to pay for treatment in case any accident takes place within the company?
From India
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He has small vendors providing manpower for temporary work (sometimes for just 2-3 hours) for temporary tasks, for instance, to repair some furniture or do some waterproofing work. In most cases, these people do not have PF or ESI registration. How should we handle such cases?
Second question: In our company, all employees earning more than 15,000 are covered under a Mediclaim Policy with coverage of 1.5 lakhs and a Group Accident Policy with a maximum coverage of up to 10.5 lakhs. But we have not taken a WC policy. Does that mean that we'll be liable to pay for treatment in case any accident takes place within the company?
From India
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(Fact Check Failed/Partial)-[response] The premium for WC Policy is typically paid by the Principal Employer. For temporary workers without PF and ESI registration, compliance is still necessary. Not having a WC policy doesn't absolve liability for workplace accidents.
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Dear Sir,
I am working as an HR professional in a reputed underground mining contract company. We are involved in various types of work on a 24x7 basis (3 shifts per day), and we have different work orders for each type of work. For example, I am currently managing two work orders, X and Y. In the X work order, we have 19 persons, and in the Y work order, we have 5 persons.
Now, I have a couple of questions:
1. Is a labor license applicable in this scenario?
2. Regarding the Workers' Compensation (WC) policy:
In the X work order, although we have 19 members, we actually require only 5 workers in each shift to carry out the work. I am considering implementing a WC policy with a basic wage of Rs. 8000 for 5 persons and a basic wage of Rs. 2000 for the remaining 14 members (total of 5 + 14 = 19) to reduce the premium burden on my company. Is this legally permissible?
Your feedback and guidance on these matters would be greatly appreciated.
Thank you.
From India, Badli
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I am working as an HR professional in a reputed underground mining contract company. We are involved in various types of work on a 24x7 basis (3 shifts per day), and we have different work orders for each type of work. For example, I am currently managing two work orders, X and Y. In the X work order, we have 19 persons, and in the Y work order, we have 5 persons.
Now, I have a couple of questions:
1. Is a labor license applicable in this scenario?
2. Regarding the Workers' Compensation (WC) policy:
In the X work order, although we have 19 members, we actually require only 5 workers in each shift to carry out the work. I am considering implementing a WC policy with a basic wage of Rs. 8000 for 5 persons and a basic wage of Rs. 2000 for the remaining 14 members (total of 5 + 14 = 19) to reduce the premium burden on my company. Is this legally permissible?
Your feedback and guidance on these matters would be greatly appreciated.
Thank you.
From India, Badli
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(Fact Check Failed/Partial)-The approach mentioned for WC policy premium calculation is not legally permissible. Premiums should be based on actual wages paid, not split to reduce costs.
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Sir, this is vinit singh tomar as i am working with Linkquest Telecom Limited., so just i need Pan India Minimum Wages 2016-17, if any den please share the same........
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is not related to the original post about the difference between Workers' Compensation (WC) and Personal Accident (PA) policies. The user requested information on Pan India Minimum Wages 2016-17, which is not addressed in the original post.
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Hi, this is Shankar. In case of any requirements for insurance, understanding the policy, or any other queries, please drop me an email at opsmanager@sargaminsurance.in.
It's important to ensure that the workforce is adequately covered.
From India, New Delhi
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It's important to ensure that the workforce is adequately covered.
From India, New Delhi
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(Fact Check Failed/Partial)-The reply provided does not address the content of the original post about the difference between WC and PA policies. It's important to focus on the insurance information shared in the original post for clarity.
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Dear All,
In our factory in Gujarat, we have a Workers' Compensation (WC) policy, and we also provide coverage for employees with Mediclaim, Personal Accident (PA), and Term Life policies. These policies offer better coverage and benefits than the WC policy. Is it mandatory to have a WC policy even if better benefits are provided to employees?
From United States, Wickliffe
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In our factory in Gujarat, we have a Workers' Compensation (WC) policy, and we also provide coverage for employees with Mediclaim, Personal Accident (PA), and Term Life policies. These policies offer better coverage and benefits than the WC policy. Is it mandatory to have a WC policy even if better benefits are provided to employees?
From United States, Wickliffe
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(Fact Check Failed/Partial)-The user's reply is incorrect as having Workers' Compensation (WC) insurance is mandatory by law, regardless of other benefits provided. WC provides specific coverage for work-related injuries and illnesses, which is a statutory requirement.
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(Fact Check Failed/Partial)-The Principal Employer would have liability in case of an accident for all contract workmen, regardless of their earnings. It's crucial to ensure coverage for all workers per ESI Act.