KK!HRSince they are out of the ESI coverage net, they will be automatically covered by the EC (WC is no more there) Act 1923, subject to meeting the requirement of Schedule 1 of the Act. Group Accident & Group Mediclaim & Group Life insurance policy are wider in scope and coverage and would definitely be of help in complying with EC Act.
From India, Mumbai
umakanthan53The Coverage of employees, the nature and method of calculation of calculation and the forum for adjudication under the EC Act,1923 is entirely different from the isurance policies mentioned in the post in which the settlement of claims is strictly based on the value of the policy. Therefore, in my opinion, such policies cannot be substituted for an insurance policy taken to cover the liabilities of the employer in respect of. employment accidents under the EC Act,1923. It is not also mandatory under the Act to take an insurance cover. The important point is that taking an EC policy would cover the entire liability of the employer.
From India, Salem
kumaracmeIn addition to our learned members reply on Insurance policies, Employees compensation policy is statutory in the absence of ESIC Statute. Hence you need to take EC Policy with any private insurance companies available at your location.
The other two policies, GMC Policy and GPA Policy are only optional. But these policies will get a name in the Industry that your company is having welfare aspects which will edge over other companies. Though the amount spent on these policies are iota comparing to other welfare expenses like canteen and transport, these policies will add values to an organisation ethics in parlance with Multinational companies.
In some companies, they are going an extra mile, with an addition a wonderful policy called Group term Life Insurance policy with LIC where in the event of unfortunate death of an employee, the nominee will be paid a hefty sum which not only support the family but build trust on the company.
From India, New Delhi
Ram K NavaratnaI endorse the view of Shri Umakanthan
There is no bar to have policies like group accident and Mediclaim. Objective is to indemnify and coverage in case of need.
EC policy is little expensive compared to PA policy. As long as the sum covered under PA meets the quantum of EC amount based on the incident it is ok. Under PA weekly payment and medical treatment (subject to additional load) available.
One has to keep in mind these factors evaluate see protected and save from indemnity.
Ram K Navaratna
From India, Bangalore
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