excelsior Started The Discussion:
In a location not covered under ESI (non-implement zone), I am required to offer workman compensation policy to my 20 contract security staff with a basic of Rs 5000/-pm ( gross pay 7000/-) for 1 or 2 years.
Can you please indicate options (if any & relative merits), basis & budgetary calculations for taking workman compensation policy? Any desirable additional clauses over and above statutory ? Thanks.
The company that i was in used to calculate WC for the contract associates in the below formula:
Upto 48000 Gross Per Annum , WC = 118 PA
If Gross > 48000PA , then WC = (actual gross - 48000)*0.12%)+118 PA
In your case Gross PA is 84000PA per employee.. so WC will be calculated accordingly.
WC Policy premium will calculate on the basis of salary and the type of category (i.e skilled or unskilled and semiskilled) I am attaching recent quotation from UNITED INDIA INSURANCE COMPANY LTD. And there is no hard rule to calculate the premium. We got quotations from different companies with deferent premiums. And funny thing is we got two equations from same company one is from local office and second one is from corporate division Hyd. Corporate division Hyd quotation with less premium and local quotation with higher premium.
My advice is to get the quotations from corporate divisions of all insurance companies not from local offices.
All the best
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