Employee Compensation Act, 1923 - whether the salary is deductible if an employee remains absent on duty for a period of one year due to an accident

Respected Sir,

Whether the salary is processed by the employer during accident leave. Our employer is in the process of preparing a Group Personal Accident (GPA) Insurance Policy for its employees. They have mentioned in the proposed policy as under:

"During accident no salary will be processed from the payroll. However, upon joining the duty and submission of required documents, employees will be compensated with TTD (Temporary Total Disablement) benefits as per the GPA policy features up to Rs.20,000/- per week and a maximum of 104 weeks."

Further, please advise on the issue of whether the salary is deductible if an employee remains absent on duty for a period of one year due to an accident.

Regards,
Mayur P. Kulkarni

Which Group Personal Accident Insurance pays Rs 20000 per week for temporary disablement? Or is it 25% of wages per fortnight? And if there is any limit for salary? Is there any certifying authority/ medical officer who will say that the disablement will last for such number of days subject to a maximum of 104 weeks?

Now coming to the issue, I would say that during the time the employee is disabled, no salary is payable to him, but he will get 25% of the salary for every 14 days. In your case, the policy says that he will get Rs 20000 per week or Rs 80000 per month. This is a compensation and not salary, perhaps better than the salary...!