Dear All,

One of my employee met with road accident while performing domestic work out side company campus and not during normal working hours. Company is having Policy of Personal Accident as well as Mediclaim of good amount and said employee is covered under the scope of PA polcy as well as Mediclaim scheme.

Now the question is whether employee will be entitled to get the benefit under the scope of Personal Accident Policy though the accident has no connection with duty or company’s work? (I suppose as there is coverage of 24 hours there shall be compensation from Insurance Company towards the absent days of employee and medical expenses)

His medical expenses are covered under the Medicalim Policy hence there is no issue on this front.
But the accident has no connection with his job or duty then also company is suppose to pass on the amount received towards the claim of Personal Accident from Insurance Company to employee??

Kindly share the practice being observed by the company under the circumstances as stated above.

Your early response will help me to take appropriate decision.


From India, Mumbai
Dear Venkatachalapathi,
Thanks for response.
The policy owns by company. It is Group Personal Accident Policy from Insurance company.
All other members are also requested to particiapte as to formalise the policy for my comapany/employee.

From India, Mumbai
Dear Professional colleague,

Any company takes personal accident policy as a measure of employee welfare; that is a criterion for attracting and retaining a talent in one’s organisation. There are quite few expenses and benefits which can not be availed in Mediclaim policy and are covered in Personal accident policy like loss of pay during the leave/absence period or compensation for partial/permanent/temporary disablement; that is the reason companies are taking both the policies for employees. The company can not take away the money passed by insurance agency in favour of employee; legally and morally speaking; this is not a core business of organisation where organisation can take the amount as ‘income or gain’. I have worked with quite a few organisations or repute in India; and always had policy to forward the amount passed by insurance agency to concerned employee.

I think other collegues in this forum shall also back this opinion.

Hope this helps in taking appropriate decisions.



From India, Mumbai
Generally, all good companies deal their employees as family members. This “family culture” fosters the organizational commitment amongst their employees and motivates them to stay and strive for the company. Such companies give loans and advance against salary to their employees in case of emergent need of money.

For maintaining proactive Industrial Relations, it is also imperative to provide genuine welfare benefits to the employees before it becomes their demand resulting in dispute. These disputes are the driving force that create the need of shifting from Individualism to Collectivism i.e., birth of Trade Unions.

Providing welfare benefits after negotiations with Trade Union never creates goodwill for the company.

That is why we should give loan (only remains debit in employee’s account without any deductions) to meet medical expenses and settle the loan account by adjusting amount received from Insurance Company later on.

To quote there is Vardhman Spinning & General Mills Limited of Ludhiana that not only provides such loan facility to its workers but also in rare cases waives off the balance amount after receipt of insurance claim amount. Furthermore, this company even facilitates the workers to litigate his case in Civil Courts under MACT by giving Advocate’s Fees in advance. Other good corporates houses have also shown similar examples in delaing with their emplyee in need.


From India
Dear Venkatachalapathi, I hope I have clear your doubts. Expecting your response now. Regards, ACCHR
From India, Mumbai

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