Employee Compensation Insurance Policy
In an increasingly global work environment, employee rights have rapidly moved
forward. To protect organizations from the threat of expensive lawsuits and large
compensation pay-outs, Insurance companies have the Employee Compensation.
The employee compensation insurance is the primary method by which an employer
can demonstrate the ability to satisfy the obligations imposed by the employee’s
compensation statutes. It is compensation payable under a scheme set out in the
Employee Compensation Act of India, monitored by the Ministry of Labour.
Coverage
Coverage under the following laws:
1. Employee Compensation Act, 1923
2. Common Law
3. Fatal Accidents Act, 1855
1. Death
2. Permanent Total Disablement
3. Permanent Partial Disablement
4. Temporary Total Disablement
5. Legal expenses and cost incurred with the company’s consent
2. Common Law
3. Fatal Accidents Act, 1855
Provides coverage to all the employees of an organization against the following:
1. Death
2. Permanent Total Disablement
3. Permanent Partial Disablement
4. Temporary Total Disablement
5. Legal expenses and cost incurred with the company’s consent
The death or injury should arise out of and in the course of employment. However, the policy also covers employees under the Doctrine of Notional Extension.
What's Not Covered
Contractual Employees: There must exist an employer employee relationship between the insured and his employees. Employees belonging to the contractors of the principle are however not covered under the policy.
Medical Expenses: Hospitalization expenses incurred by the employee are not covered under the policy.
Occupational Disease: Diseases mentioned in Part ‘C’ of Schedule III of the Workmen’s Compensation Act, 1923 are not covered under the policy.
Any injury which does not result in fatality or partial disablement for a period exceeding 3 days
Liability of the Insured assumed under an agreement.
The first 3 days of disablement where the total disablement is less than 28 days.
Cumulative bonus for each claim free year.
Extensions
Contractual Employees
Can be covered as an extension if they are specifically declared under the policy
Occupational Diseases
Any compensation for diseases mentioned in Part ‘C’ of Schedule III of the Workmen’s Compensation Act, 1923, which arise out of and in the course of employment.
Medical Expenses
With Per Employee and Aggregate Limit , Per Employee Limit , Aggregate Limit , Actual Expenses Incurred
