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| group insurance under Section-99 | Bangladesh Labor Act -2006 |
Implementation of mandatory group insurance under Section 99 | Bangladesh Labor Act -2006:
As per section-99(BLA-2006),
(1) Where a permanent worker of not less than 100 persons is employed in any establishment, the employer shall introduce Group Insurance in accordance with the prevailing Insurance Act-2010.
(2) The amount of the insurance claim shall be in addition to other entitlements of the worker under this Act:
Provided that, in case of the death of the worker, it shall be the employer's responsibility to realize the insurance claim, and the employer shall arrange for the direct payment of the amount realized from the said insurance claim to the dependents:
And further provided that, notwithstanding anything contained in any other law, if any insurance claim is raised under this section, it shall be settled within a maximum period of (120) one hundred and twenty days through the joint initiative of the insurance company and the employer.
(3) Notwithstanding anything contained in sub-sections (1) and (2), if a Central Fund is established by the Government in the 100% export-oriented industrial sector under sub-section (3) of section 232, or in other industrial sectors including the 100% foreign currency investment 100% export-oriented industrial sector, it shall not be necessary to provide group insurance for the workers of that industrial sector, and in such cases, an amount equal to the worker's group insurance shall be provided from the said Fund:
Provided that, 50 (fifty) percent of the Central Fund shall be utilized for payment in lieu of group insurance, and the remaining 50 (fifty) percent shall be utilized for the welfare of the workers.
Frequently Asked Questions(FAQs)
1. What is mandatory group insurance under Section 99 of the Bangladesh Labor Act 2006?
Mandatory group insurance under Section 99 of the Bangladesh Labor Act 2006 requires employers to provide insurance coverage for workers. This insurance protects workers by ensuring financial compensation in case of death or permanent disability caused by workplace accidents.
2. Who is responsible for providing group insurance to workers?
Under Section 99 of the Bangladesh Labor Act 2006, the employer or establishment owner is responsible for arranging group insurance for all eligible workers through an approved insurance provider.
3. Is group insurance compulsory for all factories in Bangladesh?
Yes. According to Section 99 of the Bangladesh Labor Act 2006, group insurance is mandatory for factories and establishments employing workers under the Act to ensure financial protection in case of accidents or death.
4. What benefits do workers receive from group insurance?
Group insurance provides financial compensation to workers or their families if a worker dies or becomes permanently disabled due to a workplace accident. It helps ensure financial security for the worker's dependents.
5. How does group insurance protect workers' families?
If a worker covered by group insurance dies due to a workplace accident, the insurance company pays compensation to the worker’s nominated family members or legal heirs.
6. What types of accidents are covered under group insurance?
Group insurance generally covers workplace accidents resulting in death or permanent disability. The exact coverage depends on the policy arranged by the employer with the insurance company.
7. Can workers claim compensation directly from the insurance company?
In most cases, the claim is processed through the employer or establishment. However, the insurance policy ensures that compensation is paid to the worker or the worker’s family according to the terms of the policy.
8. What happens if an employer fails to implement mandatory group insurance?
Failure to implement mandatory group insurance may result in legal penalties, fines, or enforcement action under the Bangladesh Labor Act 2006.
9. Does group insurance replace compensation under the Labor Act?
No. Group insurance is meant to support or supplement worker protection, but employers must still comply with other compensation provisions under the Bangladesh Labor Act.
10. Why is mandatory group insurance important for worker protection?
Mandatory group insurance strengthens worker protection by providing financial security, legal compliance, and social protection for workers and their families in case of workplace accidents.