The Employee Compensation policy is a legal liability policy with unlimited liability, whereas Group Mediclaim (GMC) is an indemnity policy & Group Personal Accident Policy (GPA) is a defined benefit policy i.e. the quantum as well as triggers that lead to a claim are defined at the inception in both the GMC as well as the GPA policies.
While having a GMC & GPA policy for your employees is indeed a good practice, there are some claims that would fall outside the purview of both your GMC as well as GPA. Here’s why you need to insure yourself under the WC policy
Claims under the WC act are awarded by a Commissioner, and could vary for every single employee. Quantum of claim settlement under Group Personal Accident policy is predefined. If you have insured your employee for 2 Lakh under the GPA but the award comes out to 3 Lakh, that is additional money you will have to shell out of pocket.
Occupational diseases are outside the purview of a GPA and therefore any liability that may arise out of such a claim would have to be paid out of pocket.
The WC policy covers loss of wages which is not covered under GPA.