Workmen’s Compensation (WC) V/S Group Personal Accident Policy (GPA)

Workmen’s Compensation (WC) V/S Group Personal Accident Policy (GPA) Which cover is appropriate to protect my business against any financial loss as a result of employee accident, injury / death at the workplace?

Introduction Many employers find it difficult to get the distinction between workmen’s compensation policy and Group Personal Accident Policy. This article will help you have more insight into the difference between these two policies to enable you take a decision as a business owner in protecting your employees against any workplace accident. DEFINITION Workmen’s compensation policy is an insurance policy issued by an insurance company to provide indemnity to employers for all sums for which the employer may be liable in respect of injury to their employees by accident or disease Group personal accident is a personal accident policy undertaken by business owners or employers to cover their employees against any bodily injury / death caused by external, visible, and violent means in the course of their employment

ACT WC is governed by Workmen’s compensation Act 1987 (PNDC Law 187) GPA is not governed by any ACT

COVER PROVIDED WC provides cover for Death , Permanent disability, Temporal disability, Medical expenses , Legal expenses (employer’s liability policy), Occupational diseases that might be contracted by workers arising out of or in the cause of their employment. GPA provides cover for Death , Permanent disability, Temporal disability, Medical expense

EMPLOYEES COVERED WC is for any organisation's employees. A single employee can be covered. GPA is for any organisation's employees. Cannot be bought for a single employee

TERRITORIAL LIMIT WC Coverage is limited to only Ghana. GPA policy operates 24 hours a day, 7 days a week and is a worldwide cover.

DOES IT COVER EMPLOYEE OUTSIDE THE WORKPLACE? WC provides compensation to employees only if they sustain injuries, disability at the workplace. In the event of death, the benefit is paid to their family members. No compensation is payable if the accident occur outside the workplace. Under GPA employees or their families are eligible for compensation for all expenses regardless of whether the accident happened at or outside the workplace

CLAIMS MANAGEMENT Claims under WC are processed by the labour office. Claim amount is not fixed and it varies with the degree of injury income, and age of the injured / deceased. Claims under GPA are processed by the insurance company’s claims department. Claim amount is limited to the sum assured on the policy.

Conclusion In a nutshell, taking good care of your employees reduces employee turnover rate as it motivates employees to be loyal to their current organisation which increases productivity. Any business organisation has to consider its risk appetite, business model and its territorial operations in deciding whether to patronise workmen’s compensation or Group Personal Accident policy.

ABOUT THE WRITER BERNARD AKYIN-ARKOH, ACII, ARM (MANAGER-STAR ASSURANCE COMPANY LIMITED) The writer is a chartered insurance Practitioner (CII, UK) and holds a professional qualification in Risk Management (ARM) from the American Insurance Institute. He has over nine (9) years’ experience in insurance, reinsurance and risk management. Contact Details Tel: +233249236939 Email: akyinarkohbernard@gmail.com / bernardarkoh@yahoo.com