The Employees’ State
insurance Act came into a force in 1948,
laying the foundations for a nationwide comprehensive
social insurance program the
first of its kind in South East Asia. The scheme covers an integrated system of social insurance wherein the benefits include cash payments
in the event of sickness, maternity, employments injury benefits and pension to the dependants, and medical benefits
to the workers and their families
. From January 1997, an employees
is required to contribute 4.75%
of the payable and the employee 1.75% of the receivable as the Employee’s state insurance Scheme (ESIS)
contributions . Though offering a
comprehensive social security scheme to
all Indian citizens from Kashmir to
Kanyakumari may be a far-fetchedc one ,
the Government as the first major step, announced the launch of a comprehensive social
security scheme, under the Rajiv Gandhi
Shramik Kalyan Yojana to employees
covered under the ESIS. This scheme was
put into
operations on April 1, 2005, .
The scheme offers invalidity arising out
of the non-employees as a result of retrenchment , closure or permanent members of the
workers will be supported by the Employees
state insurance Corporations (ESIC)
without any burden on the employer or employee. The scheme provides an unemployment dole of fifty per cent of the wage of the
unemployed to receive medical care in
the dispensaries and hospitals of the
ESIC. To be eligible and to get benefits
under this scheme , the workers should have contributed for a period of five
years before the cessation of employments.
ENGINEERING INSURANCE: As the
indicates these are policies designed to
cover various risks associated with engineering
applications during various
stages of productions or
constructions as the case may be. These
policies are process-specific. There are different types of plans to meet
specific requirements. The Contractors.’ All risks policy is one
that safeguard the interest of contractors and principals in respect of civil
engineering projects. This is an
all-risk cover and cover can also be extended
for third party and other liabilities. The sum insured under the policy
is equal to the estimated final erected
value of the contract on a full cost
basis. In the event of underestimation
due to cost escalation, the insurer applies the doctrine of average to
the extent of under -insurance. Another variations is the Erections all Risks Policy that is
concerned with the erection of electrical
plants and installations including
machinery, equipments and structures with little or negligible civil works terms and conditions are similar
to the Contractors, “All Risk Policy” . Under the contractors’ All Risk
Policy” and Erection All Risk Policy,
The option is available for additionally
insuring the contractor’s plant and machinery. If the sum insured is within the
specified percentage of the main contract then the additional
cover will be conterminous with the main
contract of insurance . Wherever the sum insured exceeds the specified
percentage, the contract could be an annual contract, for the
contractors could be using the machinery
and equipments in connections with
other works too. the additional cover indemnifies the contractors against unforeseen and sudden physical loss or damage to the
plant and machinery due to any of the specified
causes like burglary theft, riots, malicious acts, terrorism fire explosions, storms, accidental damages,
faulty handling etc.,
The various
locations where the plant and machinery will be stored should be declared to the insurer. The insurance are also allowed to issue the contingency policy on a “First Loss
Basis” where the contractors find it
difficult to provide the value of individual Contractors’ Plant
and Machinery (CPM) particularly in the case of mega projects. The insurers are
allowed to issue such covers under the
“File & Use’ procedure subject to adequate reinsurance support. In the case of the collapse of the New Air Terminal
built in Paris at a cost of $ 925 million, as nearly 400 firms were
involved in the constructions of the terminal, it was expected that the investigations team headed by prof. Jean Berthier might find
it difficult to pin down the responsibility to any one firm. It was opined that in the
event of any fault by a company, the claims have to be met by the police unique
chantier, an engineering insurance
policy that covers the liability of any firm involved in the constructions of
the terminal for a period of ten years from the date of completions . It is reported that the reinsurance is
shared by Swiss Re, Munich Re, General Re, and SCOR Group of France.
