Employee Compensation Dilemma: Is a Group Personal Accident Policy Enough Under the WC Act?

It is clear that ESI or Employee Compensation is taken as per the ESI Act and Workmen Compensation Act. But can anyone advise if a company takes a Group Personal Accident Policy, whether this will suffice as an Employee Compensation policy as per the WC Act?

Employer Liability and Accident Policies

The Employees' Compensation Act renders only the employer liable to pay the compensation under the Act. However, if the employer takes an accident policy of the kind you mentioned, the employer keeps himself indemnified to the extent of compensation by the insurance company.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai