Anonymous
I have few questions and need seniors and esteemed members advice ;
1. Is WC Policy Mandatory?, If not is there any judgement on this.
2. Is it compulsory to take exact number of workmen in WC Policy. Can we take upto 50% of total strength without name. Again any judgement copy on this.

From India, Bangalore
Dear friend,

As far as I know,

1) No statutory mandate in the Employees Compensation Act,1923 for taking up insurance policy against injuries caused to employees due to employment accidents.However, if the employer is a owner of a motor vehicle, S 146 of the Motor Vehicles Act, 1988 mandates a suitable insurance policy in respect of third parties' risk arising out of the vehicle's use in a public place.S 147(1) of the M.V.Act makes it obligatory for the insurer to cover the liability under the E.C Act,1923 in respect of death or bodily injury of an employee arising out of n in the course of employment and such a liability is with regard to the available compensation under the Act.In other words the insurer virtually steps into the shoes of the employer for the purpose of paying the compensation to the workman.In case you are a Contract Labor Establishment, your Principal Employer can insist an E.C.Insurance Policy in respect of the contract labor you are going to supply.If the contract is very dear to you, u have to take up an insurance policy accordingly.

2)As it is, there is no legal compulsion to take insurance in respect of all the workmen likely to be actually employed.Since insurance is virtually a contract between the employer n the insurer, the conditions are to be discussed n decided mutually.Normally, unnamed insurance policies are taken in respect of workmen category-wise depending upon normal requirements of any work.

The necessity for quoting judgments arises only in case of practical ambiguities and I do hope there is none regarding your queries!!!

From India, Salem
As rightly said by Mr.Umkanthan, it is not mandatory statutorily to obtain an insurance cover for the employees except as provided under the Motor Vehicles Act. However, what is mandatory is the liability to pay compensation to the employee, if injured in the course of employment. Thus it is advisable to take insurance, whether as immediate employer or as principal employer, to cover not only the employees against injuries but also yourself against liabilities under EC Act 1923.
B.Saikumar
Mumbai

From India, Mumbai
Thank You very much for your valuable suggestions Umakanthan.M Sir and B.Saikumar Sir. Sir i am requesting for judgement is, our priciple employer is insisting for taking WC Policy and that also upto the total number of workforce. Though contract does not not say so.
We have tried a lot to persuade them but they are not paying head and instead asking for any legal documentary proof. That is why if i get any advice on same may i would satisfy their need.
Abhishek

From India, Bangalore
Dear Abishek,
What is normally seen from general practice, in respect of Group Insurance Policies for the liability under the E.C Act,1923,is that Insurance Companies do not insist on the actual no of people likely to be employed as contract labor since such policies are Unnammed Policies but a fair no of coverage of every category of employees and the rates of wages basing on which compensation would be determined in case of claims.Of course, the probability of injury to all the workmen in case of an employment accident is very remote.However, you cannot blame your Principal Employer for his insistence on taking up a policy in respect of the maximum no of c.l likely to be employed.Anyway, he is going to reimburse the cost on this score or you are to add up to your rate.So, proceed accordingly.

From India, Salem
Workmen compensation policy is taken in the interest of the company. By taking the policy, any liability arises will be taken care by the insurance company. J.Ambashankar
From India, Chennai
Hi,
First of all you have not mentioned whether your' first is comes under the purview of factory / establishment where 10 / 20 employees are working. Secondly you have to find out whether the factory / establishment located is coming under the purview of ESI Act or not. If it comes under the ESI Act you can cover your employees under the Act, who are drawing a salary upto Rs.15000/- per month. Once employees covered under the ESI Act no need of covering under any insurance policy. Howerver, if ESI Act, is not appliacable if any accident happened arising out of and during the course of employment principle employer has to pay huge compensation to the injured person or his legal heirs. In order to avoid this we can take master policy for all the employees under Employees Compensation with the Insurance Company by paying premium.
Hope this suffice your requirement
bv sudhakar

From India
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