Employee Met With An Accident On His Way To Work: Benefit And Compensation

Dear all seniors,

I need your guidance on the following. One of our company employees met with an accident while riding his motorcycle on the way to work. He has been hospitalized for three days now.

1) Are there any liabilities on the company in this case regarding compensation, etc.? Please advise.

Regards,
Amboy

Dear Amboy,

Yes, Jagat Kumar is correct. If he is covered under the ESIC, then don't worry. But if not, ensure that he should be covered under the Mediclaim & Personal Accident policy.

In case of not having the above policy, it shall lead to all liability falling on the company's head, and the company will have to bear all the costs incurred during his treatment.

If he is covered under ESI, he should apply for that. If he isn't covered, the compensation act will apply (meaning all expenses will have to be borne by you).

CTC means Cost to Company. Basic salary means Basic + DA (Basic is fixed by the State government). Gross salary means Basic + DA + HRA + Medical + LTA, etc. Net salary means after deducting PF and PT (If salary is above 10000 rs) from gross salary. Net salary is also called Take-home salary.

If the accident occurred on a public road, no liability for the company arises except for providing medical treatment as a courtesy to your employee.