Workers to be insured against 'natural disability'?
Question # 1:
We want to sign a contract with an insurance company which must have to cover all legal benefits/aspects as endorsed by LAW. For the compliance of 10-B. Compulsory Group Insurance of Standing Order Ordinance 1968, I want to know further that should the workers are insured against natural Disability..??. here is extract of law is for reference available:-
10-B. Compulsory Group Insurance.-
(1) The employer shall have all the permanent workmen employed by him insured against natural death and disability and death and injury arising out of contingencies not covered by the Workmen's Compensation Act, 1923 (VIII of 1923), or the Provincial Employees Social Security Ordinance, 1965 (W.P. Ordinance No. X of 1965).
I am quoting here two example cases which specifically we are facing and have to decide/know their entitlement status under 10-B of Standing Order Ordinance 1968. For example a person was employed in our industry on dated Feb 14, 2011 and suffered due to typhoid in 2013 due to which he cannot recover properly and lost his both eye sight (75%). We have submitted his case to EOBI for disability pension and as per medical board he awarded the same. Now, need to know that as per 10-B should he entitled for Group Insurance amount or not. (under natural disability).
Second example. A person was employed in our industry on Dec 14, 2006 and suffered with heart decease and get treatment (angiography) after it we have applied for EOBI disability pension and as per medial board they declare him unfit for job and recommended for retirement and disability pension awarded also. Now, need to know as per 10-B should he entitled for Group insurance amount or not (under naturel Disability).
Sir, We shall be very grateful to find your legal opinion which have too much weightage and worth full as well.
Manager Admin and HRD
Bismillah Textiles Ltd.
Answer # 1:
The law section 10-B states that the employer shall have all the permanent workmen employed by him insured against following four contingencies:
1) natural death,
3) death and
The amount of compensation for which each workman shall be insured shall not be less than Rs. 400,000. in Punjab as specified in Schedule IV to the Workmen's Compensation Act, 1923.
Reading of the law is plain and simple. The workers must be insured against four contingencies and that includes disability as well. Like death, the disability could be natural as you gave examples or job-induced disability. So it cover both aspects. Therefore, I am of the opinion that under 10-B a worker should he entitled for Group insurance amount.
Your confusion whether group insurance covers "natural disability" is understandable as the confusion was created by the law itself and by subsequent amendments in it.
The source of confusion is sub-section (4) which was inserted in 1974 where insurance compensation was paid for only "death and injury". Two years later, in 1976...