INSURANCE - Accounts Executive

Dear ,



We have employees under various categories, designations and salary levels. A person whose salary is upto Rs.7500/- are covered under ESIC. In addition to the above, what additional insurance cover we should have, to cover all possible eventualities involving the staff to protect Company's interest by way of payment of compensation in case of accidents, while on duty. Please advise the need to take Workmen Compensation Cover, Personal Accident Cover for various category of employees.



To give you few examples:

1. A person drawing a salary of Rs. 8,000/- will not be covered under ESIC. Should we take a Workmen Compensation, personal Acccident for this person ?

2. Similarly, an Accounts Executive drawing salary of Rs. 5,000/- who is covered under ESIC, should we take a Workmen Compensation, Personal Accident for this person?

3. Manager drawing salary of Rs. 35,000/-, should we take Workmen Compensation & Personal Accident ?



Hope the above is clear.



Await your reply soon as these policies are due for renewal.

Regards,

Ujjvala salian

Hi,
I think corporates are now going in with all sorts of value additions being given to employees so has to keep the attrition levels down as well as to retain good and experienced personnel....In that area organisations are now taking additional insurance policies for their employees.....
You can go for Group personal accident policy or Group mediclaim policy or both for categories not covered under ESIC. The limit on these policies can be as per the employee designation, salary etc....
Hope the above is of use to you.
Thanks
Vani

Hello!! I would like to answer your queries as follows:-
1. Since the ESI coverage is limited to Rs. 7500/- , you can have a personal accident policy to cover the eventualities.
2. Once a person is covered under ESI, there is no need to go for Workmen Compensation as both are exclusive (Section 61)
3. A manager, by basic concept can't be a workmen, He cannot be said to be doing work specified in Schedule. So a personal accident policy is fine. In deed the WC Act does n't call for any specific contribution or policy but only calls on an employer to meet the liability where needed. So a personal accident policy can help to meet the W.C. liability as well.
hope the same clarifies.
KK Nair

ESI COVERAGE
PLEASE NOTE
THE REVISED ESI COVERAGE WEF OCTOBER 2006 IS RS 10,000
THOSE WHO ARE DRAWING SALARY UPTO 10000 IS COVERED UNDER ESI ACT
REGARDS
MANO KAVIN