In any production, the safety of employees is important, which is mainly provided by the manager. What is corporate employee life insurance? In our country, this service is not as demanded as in other countries. But still, responsible managers decide to ensure the safety of workers. This service is described in the article.
Features
Employee insurance fundamentally differs from property insurance in the first place in that the beneficiary is the manager and not the family of the employee who works in the enterprise. Under this form of insurance, the amount of insurance claims is usually divided between the company and the employee’s family.
This form of insurance provides the ability to transfer part of the fund to the needs of the company. This makes fund amounts an additional source of funding.
Goals
Employee insurance in each company provides the following benefits:
- It will turn out to keep professionals at work, which is very important if this applies to highly qualified employees. Most workers value the workplace for utilitarian reasons.
- Insurance improves the image of the company. It is as important as providing soft loans, a comfortable workplace, convenient transportation, and various guarantees.
- Such a service is cheaper compared to the provision of bonuses, for example, with a salary increase. The advantage is especially appreciated by middle-aged employees who, in addition to income, take care of maintaining the well-being of the family in case of illness or death.
- Contributions made reduce taxation.
- With the loss of work ability or death of the employee, the organization partially or fully pays compensation to his family.
There is another factor that some may not consider very important. In fact, the loss of even one professional specialist can complicate the situation in the workplace. This applies to industries where production operates on the basis of the conveyor principle and is highly dependent on the personality of the workers.
Important information
Insurance programs are created based on the wishes of citizens. But the budget of the organization and the need for services are necessarily taken into account. The Law on Insurance against Industrial Accidents (Federal Law No. 125) has reduced the number of adverse situations. The goals and objectives necessary to protect the health and life of employees were set. For example, measures are being taken to eliminate hazardous factors in the workplace.
Insurance of individuals, that is, employees, involves the payment of compensation for damage by the company. And the state provided guarantees that these legal norms were implemented. After an injury or occupational disease, a person has the right to restore health. The insurance company involves the payment of contributions. The expense of funds is controlled.
Fund
If compulsory insurance of employees is executed, then the payment is provided by the Social Insurance Fund. This organization:
- Compensates for damage from work-related injuries.
- Gives a lump sum allowance to the victim.
- It makes payments for medical and social assistance.
- It provides disability pensions, disability pensions, in the event of the death of the victim.
- Pays survivor benefit.
- Makes payments of temporary incapacity.
- Pays compensation for harm caused at work.
- Organizes a funeral.
- Protects against accidents.
The fund is formed thanks to employer contributions, capitalization of payments, as well as from fines, penalties, voluntary contributions.
Programs
Employee insurance is based on a specific program. They suggest a full range of protection, which allows you to receive various types of services. Usually employees receive outpatient, inpatient, emergency care. There are programs whereby medical services are provided not only to employees, but also to their families. In this case, installment payments are valid.
For registration of the service, an employee’s permission or a statement is not necessary. The procedure is carried out after a person arrives at work. Whatever official duties are performed, a person receives a document. There are programs whereby victims are given treatment in the best medical facilities.
What help can you count on?
Employee insurance allows you to receive compensation in the event of unforeseen situations that led to a deterioration in their health. All treatment costs must be documented.
With the conclusion of the contract, you must agree on a list of services. The insured amount is established by agreement of the parties. The cost or payment is determined by the selected conditions, medical institutions, the number of insured persons. The organization of medical care is performed by preferential doctors and specialists.
The contract of compulsory insurance, as well as additional insurance may include a guarantee for the provision of the following services:
- Consultations and informational help.
- Record and referral to a doctor.
- Emergency care and home care tips.
- Medical service.
- Hospitalization.
- Individual approach to customers.
- 24 hour service.
Thanks to this service, employees are guaranteed quality medical assistance from doctors, as well as protection from large expenses for medical services.
Insurance case
Compensation is paid upon the occurrence of an accident. More about it is said in Art. 3 Federal Law No. 125. According to the law, this is a situation that led to injury, injury or death of an employee in the performance of his labor duties. In this case, any case should be confirmed by documentation, for example, certificates from the hospital. Only this gives grounds for compensation.
Employees are also insured while they are going to work or after a working day, if transportation is carried out using official vehicles. It is assumed that the injuries result in consequences due to which a person cannot begin to work. Transferring an employee to another job due to injury is considered an insurance event.
Compensation is paid regardless of the duration of the work, the type of activity performed. The right to receive compensation appears from the moment of a documented injury at work.
With voluntary insurance, its validity is established by the parties. The contract may be valid for a month or a year. With this service, compensation is paid for specific types of injury, if indicated in the document. It should be borne in mind that only physical harm to health is compensated, and moral must be recovered from the perpetrator through the court.
How are expenses covered?
If life insurance of employees is executed, then compensation is provided to them, with the help of which some expenses of the company are covered:
- Losses on the full restoration of the work of the entire team, as well as the resumption of the project where the person worked.
- Selection and replacement training.
- Image losses, which usually refer to the fact that clients were previously attracted by the personal data of a professional and manager. After this, there is a need to review the company's development strategy.
Voluntary insurance allows the employee to gain confidence in the well-being of the family in case of illness or death. A lot of obligations are assumed by the company.
Important points
If voluntary insurance is chosen by the employer, the head of the company must choose the appropriate insurance company and always control this area. When a compulsory insurance or voluntary insurance contract is drawn up, the following factors should be considered:
- Conditions for payment of insurance claims and compensation for various forms of insurance.
- Basic conditions for investing in funded insurance.
- The proportionality of payments for damage that the company suffers with the loss of an employee.
The choice of the company plays an important role, since it is necessary to take into account the situation on the market. An enterprise needs to implement programs no worse than in other firms, otherwise the service will not be an advantage that can be used to fight for personnel. Before choosing an insurance company, you need to determine the material condition of the institution. Before drawing up the contract, employees undergo a medical examination.
Rights and obligations of the employer
Insurance of individuals (workers) imposes certain rights and obligations on the employer. They are enshrined in law, so any violation leads to liability. Rights include:
- Obtaining information from the FSS on the expenditure of funds.
- Obtaining documents to verify the expense of money.
- Protection of rights in court.
Responsibilities include:
- Compensation payment upon occurrence of insured events.
- Informing the foundation about accidents.
- Making changes about the activities of the enterprise, professional risks.
- Informing employees about the possibility of contacting the FSS.
- Refund if the money was not timely transferred to the fund.
Personnel insurance is considered the responsibility of management to create safe working conditions in the workplace, to reduce the number of accidents, occupational diseases. Therefore, all developed companies offer their employees such guarantees, which increases their image.