1.
Introduction
The
provisions of Industrial and commercial employment (Standing orders) ordinance,
1968 makes it compulsory for the employers that they shall have the group
insurance of all the permanent workmen working under their administration
against the natural death and disability and death and injury arising out of
contingencies.
2.
Relevant provisions
Following
are the relevant provisions of industrial and commercial employment (Standing
orders) ordinance, 1968 regarding the concerned topic
Standing
order 10-B
3.
Object of Order 10-B
The
object of order 10-B is to provide financial assistance to the workmen or to
his legal heirs and secure the life of workmen.
4.
Compulsory Group Insurance
Under
Order 10-B the employers are required to have all their permanent workmen
insured against natural death and disability and death and injury arising out
of contingencies not covered by the workmen’s compensation Act 1923 or
provincial employees social security ordinance, 1965.
i.
Essential to claim group Insurance
Claim
of group insurance is enforceable only where relationship of employer and
employee subsists and not terminated.
ii.
Workman entitled to Insure
Only
permanent workmen are entitled to insure.
a.
Meaning of Permanent Workman
A permanent
workman is a workman who has been engaged on work of permanent nature likely to
last more than nine months and has satisfactorily completed 3 months
probationary period in the same or another occupation in the Industrial or commercial
establishment and includes a badly who has been employed for continuous period of
3 months or for 183 days during any period of twelve consecutive months.
b.
Insurance of Risks
The
employer shall insure the workmen against the following risks.
i.
Natural Death
The
purpose is to provide financial assistance to the legal heirs of the deceased
workman. Where the death of worker was not natural but due to over intoxication,
legal heir is not entitled to insurance.
ii.
Disability
Word
disability means incapacity to act or move. Falling health could not constitute
disability.
iii.
Death or injury arising out of contingencies
Workmen
shall be insured against any death or injury arising out of contingencies not
covered by the workmen’s compensation act, 1923 or the social security ordinance
1965.
5. Responsibility of employer
i.
Payment of Premium
The
employer is responsible for the payment premium in group insurance of workmen.
ii.
Administrative Arrangement
The
employer is responsible for all administrative arrangements of group insurance
whether carried out by himself or through an insurance company.
6.
Amount of Insurance
The
amount for which each workmen shall be insured shall not be less than the
amount of compensation specified in schedule IV to the workmen’s compensation
Act, 1923.
7.
Liability of employer when workmen not insured
If
the employer fails to insure all workman as prescribed, the employer shall pay
in the case of death ot the heirs or in the case of injury ot the workman, such
sum of maoney as would have been payable by the insurance company, had such
worker been insured.
8.
Manner of Recovery
All
claims of a workman or his heirs or recovery of money from the employer u/sec 4
shall be settled in the same manner provided under workmen’s compensation Act
1923.
9.
Jurisdiction Entertaining Claims of compulsory Group insurance
The
commissioner for workmen’s compensation has jurisdiction to entertain and
adjudicate claim under standing order 10-B.
10.
Order of commissioner is not Appealable
The
order of commissioner regarding group insurance amount is not appealable.
11.
Remedy against order of commissioner
Remedy
could be availed of in constitutional jurisdiction of High Court.
12.Applicablity
of order 10-B
The
provisions of standing order 10-B shall not apply the first instance, to any
industrial establishment not more than forty nine persons were employed on any
day during the preceding 12 months but Govt. may by notification in the
official Gazette extend it ot any such industrial establishment or class of
such establishments.
13.
Conclusion
To
conclude, I can say, that the insurance policy is obtained to ensure payment in
respect of risk covered thereby. By virtue of standing order 10-B, duty is
imposed on employer to insure all his permanent workmen against all four risks
set out is S.O. 10-B, and the object is to provide financial assistance to the
workmen or his heirs.
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