The cover afforded by the Workmen’s Compensation Insurance is limited to accidents or illnesses arising out of and in the course of employment with a maximum liability of Rs. 550,000- under the Act and unlimited under the Common Law. The company should consider a Personal Accident Insurance as a top-up cover or as an additional fringe benefit for the employees. This would motivate them to remain with the company and would boost their morality and loyalty towards the company. It’s an endorsement by the company that they care and value their employees’ well being.
The insurance covers death or permanent total disability and permanent partial disability caused by accidental, external and visible means. The policy could be extended to cover weekly benefits due to temporary total or temporary partial disability.
The sum insured could be based on a limit per person or based on maximum 60 times the monthly salary of a person. The persons covered must be named in the policy. The cover is operative 24-hours a day and could be extended to include Riot & Strike and if necessary, Terrorism. The premium for basic cover would be around Rs. 200- for a sum insured of Rs. 100,000- per annum.