Query On Site Specific WC Policy & All India Validity WC Policy

Dear Members,

While engaging contractors for temporary work at a manufacturing site, normally contractors are having "All India Valid" WC policy, which mentions no of workers employed by the contractor at varios locations. It is possible the contractor may have more workers than the no mentioned in WC policy. To avoid such a situation, please share your views/ law provision on asking for site specific policy from contractor.

Further, if contractor is having GPA policy & not WC Policy, in case need arises to make payment under EC Act, will payment made thru GPA policy will be paid thru Labour Court and will it be treated as compensation under EC Act or the liability of WC payment will still remain?

Thanks & Regards,

Gaurang Sheth

kannanmv

Dear Gaurang Sheth
The WC policy of the contractor should cover the average number of workers employed by him on any given day. This is because that in the event of a claim it will serve as a proof/ evidence.
The Group Personal Accident policy is similar to a WC policy but will not replace the WC policy. The advantage of a Group Personal Accident Policy is it covers 24 hours world wide and is not confined to place of employment. Moreover, for accidents suffered by employees and loss of earning capacity for brief spells the GPA offers weekly benefits subject to a maximum of 1% of the sum assured or Rs.3000/- whichever is lower. However, the WC policy is a widely accepted policy and can be open ended or unnamed.
In my opinion the Group Personal accident policy cannot be open ended or unnamed.
So my recommendation will be to advise the contractor to take a WC policy.
M.V.KANNAN

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