Worjers Compensation Act - Help Needed - CiteHR
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Dear All
I require some clarification regarding the mechanics of WCA
I know that this is a form of insurance from the company to the employee in case of death or injury, while on the job
I was wanting to know if the employer does a monthly contribution for each worker as a percentage of basic pay? If yes, what is this percentage and how is it calculated?
If no, can someone explain the working of WCA
Annika Anand

Under Workmen Compensation Act, the employer shall paid the compensation only after the injury/disability or fatal accident. there is no provision for contribution. The employer is bounded with Act to pay the compensation
there is nothing like insurance in WCA. This Act has been enacted by the Govt for providing compensation to the employees in case of employment injuries and to their families in case employment injury results into death of the employee. it comes under the category of social security legislation. Employer is liable to pay the compensation and it is paid as and when a case arises. employer do not give any such monthly contribution.
Dear Annika,
It is an anonimusinsurance in which your liabilty will be shifted to the insurance company. Its positives are that it does not requre names so that casual labour and those whose salary is more than 10,000 shall be covered. Its negatives are that its benifits are discussed in a different kind of court and it takes almost a year (nearly).
Rates depends on the strength
I hope this much will be useful
Vijay Vyas

Workmen Compensation Act is a social security legislation so that in the event an employee meets with an accident "during and in the course of employment", the employee is compensated for the loss, medical costs, and loss of earning capacity (if one follows). If the employee succumbs to the accident, then his successors (read family members) are to receive the benefits.

1. For those employees working in a company which is within the ESI Notified area and are drawing wages/ salary below Rs.10,000/- per month and the company employs more than 10 such employees, the ESI (Employees' State Insurance) will apply. Under the ESI Scheme, the employer and employee together contribute about 6.5% of the wages to the ESI corporate and the Corporation accepts all the liability and is far superior to the benefit provided under the Workmen Compensation Act. It even has provisions of ESI run Hospitals (managed by the State Government concerned) and provides a lot of benefits for treatment, loss of earnings, compensation, maternity benefit (for females) and so on.

2. Where ESI is not applicable, law requires the employer to compensate an injured "workmen" through the provisions of WCA. You may go through the benefits that an injured person is entitled to under the WCA and it is quite easy to download the bare act and understand this.

3. Normally, insurance schemes are available to take care of the benefits payable under WCA and General Insurance Companies such as New India Assurance or United India Insurance Company provide for such policies. On payment of a mutually agreed premium, which is very nominal, the Insurance company undertakes to make good the compensation payable to the injured person, including some compensation for loss of wages during the period of absence during the period of treatment

4. Normally, HR would have incorporated an indication about this in the offer of appointment of employees. Even if it is not shown in the offer of appointment, employer is duty bound to either pay the benefits from the company as per WCA or pay through the Insurance Company.

5. When an injured employee gets compensation under the WCA or through an Insurance Policy, he or she may find it difficult to get any other compensation from other sources such as an Accident claim Tribunal.


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