Need Help with Workman's Compensation Policy and Agreement Format for Machinery Use?

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.

Standard Format of Agreement

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

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

Thank you.

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.

Regards,
Soundarrajan S.
[Phone Number Removed For Privacy Reasons]

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

Thanks,

Soundarrajan.S

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, understood, or underwritten the risk, it can lead to issues.

Understanding the Workman's Compensation (WC) Policy

The WC policy is essentially a nameless policy. This policy is taken when you have casual labor working, and you, as the employer, want to safeguard against any compensation in case of eventualities. You need to declare how many skilled, semi-skilled, and unskilled workers you are going to hire and their wages paid per day. There will be a one-time premium to be paid for such a declaration.

An insurance company will issue a policy based on your declaration. In case of any accidental death, a thorough investigation will be conducted 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 any amount over and above will be paid by the employer.

Hope this clarifies your doubts.

Regards,
Murali

Understanding Workmen's Compensation (WC) Policy

WC policy is essentially a nameless policy. This policy is taken when you have some casual labor working, and you, as an employer, would like to safeguard yourself 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 any amount over and above will be paid by the employer.

Hope this clarifies your doubts.

Regards,
Murali

Considering Alternative Policies

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?

Regards

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.