Understanding Workman Compensation and Mediclaim Policies: What Should Employers Consider?

Dear Seniors, I need your support and help. When an organization is not covered under ESI, it is covered under the Employees' Compensation Act. My queries are:

1. What is a Workman Compensation policy?

2. What other salient features should a mediclaim policy have in addition to the workman's compensation policy?

3. Should an organization opt for an insurance plan for workers as well as their family members?

Please help.

Regards,
Gayatri

Your query is not clear. If your organization is not covered under ESI, then it is covered under the Workmen's Compensation Act. If an organization is covered under ESI, the WCA is merged into it. In the case of ESI, even the workers' family members are covered. Additionally, companies offer other insurance schemes such as group insurance/family insurance for the workers.

I hope this information is helpful to you.

Regards,
Rajeev Dixit

Our organization comes under the WC Act. We are in the process of getting an insurance policy for our employees. I would like to know what we should look for in the insurance policy. The WC Act clearly mentions disablement of limbs, eyesight, and occupational diseases. Our management is interested to understand what other aspects should be covered in the policy.

ESI provides medical and sickness benefits to family members as well. To align with this, should we also consider medical insurance for family members?

Please advise.

Regards,
Gayatri

Gayatri,

ESI is applicable up to a salary of ₹15,000. So, employees earning up to ₹15k have their families covered under ESI. ESI covers everything; I think if ESI is present, no other policy is required.

For employees earning above ₹15k, you can opt for a mediclaim policy that covers hospitalization, medicine, accidents, etc.

Regards,
Rajeev Dixit