Insights on Workers Compensation Policy, Premium Calculation, and Insurance Coverage

Dear All!

I am working in a private infrastructure company and I need the premium calculation method for the workman's compensation policy. I am planning to engage some earth movers and other machinery for my project. Is there a standard format of agreement available? If anyone has such a format for machinery and engaging subcontractors, kindly send it to me.

Thanks

Hi,

The attached document will help you with workmen's compensation details. If it is fine, then do let me know.

Thank you.

Dear Mr. Ashok Negidi,

Thank you for sending the reply. Let me review the details to respond. I require some basic information:

1. Is there any limit for the minimum or maximum salary/wages to be paid?
2. Is the basic premium applicable to all ages?
3. What legal provisions govern extending the coverage period and including other laborers or workers?

If you have any insights on these questions, please provide the details.

Thank you once again.

Soundarrajan S.
07896090030

Hi,

Please go through the Minimum Wages Act.

I did not understand your questions. For example, if you want to apply for a license for 10 employees, it's better to apply for 20. You will need to fill some documents if you are increasing the number of employees.

Hi!

Actually, in the WC premium calculator, it was mentioned that the premium for Rs. 1000/- will be Rs. 21.40. Is it applicable to all ages? And if I go for a limited period, i.e., 3 or 4 months, then how will it affect the cost?

Thanks,

Soundarrajan.S

Hi,

My humble request is not to do your own calculation. Please consult a specialist or consultant before you proceed with Workers' Compensation. It is not as simple as you may think. If you have not taken enough precautions, understand, or underwritten the risk, it can lead to issues.

Dear Soundarrajan,

WC policy is basically a nameless policy. This policy is taken where you have some casual labor working, and you, as the employer, would like to safeguard from any compensation in case of eventualities. You have to declare how many skilled, semi-skilled, and unskilled workers you are going to hire and their wages paid per day. There would be a one-time premium to be paid for such a declaration.

An insurance company would issue a policy based on your declaration. In case of any accidental death, a thorough investigation would be done by the insurance company and the labor department to ascertain whether the details mentioned in the declaration are true. The award given by the labor department under WC Act will be paid by the insurance company for the sum insured, and any amount over and above will be paid by the employer.

Hope this clarifies your doubts.

Regards,
Murali

Dear Soundarrajan,

WC policy is basically a nameless policy. This policy is taken where you have some casual labor working, and you, as an employer, would like to safeguard from any compensation in case of eventualities. You have to declare how many skilled, semi-skilled, and unskilled workers you are going to hire and their wages paid per day. There would be a one-time premium to be paid for such a declaration.

The insurance company would issue a policy based on your declaration. In case of any accidental death, a thorough investigation would be done by the insurance company and the labor department to ascertain whether the details mentioned in the declaration are true. The award given by the labor department under the WC Act will be paid by the insurance company for the sum insured, and over and above will be paid by the employer.

Hope this clarifies your doubts.

Regards,
Murali

Dear Mr. Murali,

Thanks for your reply. Instead of WC, can I go for a group personal accident policy? Is it advisable?

As you know, there is one policy in Oriental Insurance company named "Nagarik Suraksha." Under this policy, we have to pay Rs. 75/- per lakh. The only thing is we have to mention the names of the persons. Can I opt for this?

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Which salary is multiplied - basic or gross - by the relevant factor?

Dear Sir,

I am working as HR in an MNC. My company obtained a contract labor license from DLO. We are engaging some subcontractors under our work, and we also issue them work orders. In this case, we are the principal employer. Do I have the rights to issue Form V? Kindly confirm this for me.

Thank you.

Construction company job involves 200 laborers working on-site. If laborers do not follow the WC policy, they may face issues with ESIC coverage.

Construction company job involves 200 laborers working on-site. If laborers don't follow WC policy, they can access ESIC benefits.

No need for WC policy coverage in ESIC.

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Don't take WC policy. All benefits are covered in ESIC.

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I have corrected the spelling, grammar, and formatting errors in the user's input. The revised text now reads:

"Don't take WC policy. All benefits are covered in ESIC."

I want to work on roofs in new and old buildings. I don't have a contractor's license. I need assistance with the tendering process to get roof fitting contracts. Please help me.

Contact: 09228199867

How will the workers' compensation policy calculate after death?

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Hello,

I hope you are doing well. Regarding your query about the workers' compensation policy calculation after death, the process typically involves assessing various factors such as the individual's salary, dependents, and any specific provisions outlined in the policy. It is crucial to review the policy details and consult with the relevant authorities to understand how the calculation will be determined in the unfortunate event of the policyholder's death.

If you require further assistance or clarification on this matter, feel free to reach out. Thank you.