Workman compensation policy (calculation)
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Workman compensation policy (calculation)

excelsior Started The Discussion:

Dear All,

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.

Excelsior

Jeene - Member Since: Sep 2006
Hi,

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.

Regards,
Jeene

gawalipankaj - Member Since: Aug 2007
I dont know exactly calculation of WC policy, but you can contact any agent of general insurance company, such united india or iffco tokio, they will guide you.

vkokamthankar - Member Since: May 2008
  • Very simple. Contact 3-4 General Insurance Cos. convinient to you. (New India Assurance, Oriental Insurance, Bajaj Allianz etc.) Ask for quotations.
  • Choose vendor after comparison. No need to do any budgeting and all.
Quote:
Originally Posted by excelsior View Post
Dear All,

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.

Excelsior

kvjraghunath - Member Since: Aug 2010
Dear Friends,

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

KVJ Raghunath


Attached FilesProvided by community member kvjraghunath. Join us to learn and grow with your peers.
File Type: doc United India.doc (74.0 KB, 1214 views)
D.V.Vinod kumar - Member Since: Apr 2011
Dear All, Could you please advise on WC policy premium amount, wthether we have to consider gross salary or basic salary for calculation of premimu amount.. Regards, Vinod

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