Manufacturing industries are involved in the processing and manufacturing of items. They indulge in the activities that are either related to value addition or creation of new commodities. Manufacturing industries form a significant part of the industrial sector of any country and define development and growth of the country. It is not necessary that the final product offered by a manufacturing industry will be offered as finished goods for sale to customers or as an intermediate commodity/raw material to be used for further production process
Manufacturing industries contribute a significant share in the Indian economy. These industries are broadly categorized into- engineering, electronics, chemical, food and beverage, plastic, construction, transportation, logistic, energy, metalwork, textile, and chemical, etc.
Manufacturing industries offer a variety of employment opportunities due to diversity and larger scale of operation. Here are the types of employees hired by the production units:
Managers and Other Clerical Staff
Usually involved in lower risk administrative work, this staff is responsible for analysing the situations, performance of the organisation and various functions and make decisions. Marketing, human resource, sales, finance, etc. are the examples of departments in a manufacturing organisation where such staff is concentrated.
This person is bestowed with the task to overlook the overall operation of the business to ensure the efficient functioning of the manufacturing process. This role may involve a combination of floor operations and office work.
Every manufacturing unit employs several engineers in their relevant field to design the products and goods offered by it. They also deign the overall process of the product manufacturing to ensure the quality and cost-effectiveness of the product manufactured. Their role as well may involve a combination of clerical and mechanical work.
Assemblers and Fabricators
In simpler terms, they can also be called as the workers and are the most important part of the manufacturing industry’s workforce. They are responsible for actual production, assembly or fabrication of goods based on the specific instructions ad blueprints provided by their superiors. In some cases, they may require certain technical knowledge to carry on their duties. These workers are at times contractual as well as permanent employees.
Based on which specific industry they are employed in their risk profile varies, but among all other classifications they carry the highest risk on the job.
Group Insurance & Manufacturing Organisations
In the case of manufacturing industries, workers are continuously exposed to many risks. Since they need to work with the machinery, chemicals, and other hazardous substances. Even when you implement best of the safety measures, there is a constant risk revolving around the well-being of your employees.
These inherent risks require manufacturing firms to provide and be prepared with the last mile solution like insurance to the workers. These solutions are presented as group insurance plans which help the firms take care of the expenses of their workforce at minimum cost in the event of loss:
Group Term Insurance Plan
It is the type of life insurance coverage that is offered to a group of people by an employer or organization. It provides coverage in case any employee dies during the covered period. In such a case, lump sum payment is made to the beneficiary of the deceased employee.
Workmen’s Compensation Insurance
Many studies estimate that contractual workers form more than 40% of the countries’ total workforce. Due to their contractual nature, these workers are not entitled to many of the group benefit schemes offered by the company. But, the firm still holds the responsibility for their safety at the workplace (as defined by the Act).
Workmen compensation insurance allows firms to take care of this responsibility. Companies may opt for better benefits than offered under workmen compensation act, at lower rates.
Group Health Insurance
A manufacturing industry can consider buying a group health insurance policy to cover the health risks of all the employees under the same plan. This is a very useful employee benefits scheme even if your firm is small or just a start-up with few employees.
Group Personal Accident Cover
Group accident cover provides comprehensive coverage in the event of death or disablement of any employee in an accident. In addition to this, it also provides a coverage ambulance expenses, a weekly benefit for the time-period the employee cannot work, broken bones and mortal remains transportation. The best part is that it can be applicable 24×7 and universally.
Group Gratuity Plan
Gratuity is another statutory benefit which any firm employing more than 20 people must offer. But this responsibility may be financially taxing, and therefore an insurance is recommended for the same.
Group Superannuation Plan
Another mandatory plan for organisations consisting of more than 10 employees. However, this is only compulsory for workers with a basic monthly pay of up to Rs. 15,000. Beyond that employees can choose the opt-in or out.
Employee Deposit Linked Insurance Schemes (EDLI)
All employer that are covered under the provision of the Employee Provident Fund and Miscellaneous Schemes, 1952 need to compulsorily apply to EDLI that provides a lump sum payment to beneficiaries in the event of the death of the employee due to accident, illness, or natural causes. However, if a group life insurance is offered with better benefits than EDLI employer may apply for an exemption. The current benefit payable under EDLI is Rs. 600,000 in the case of death.
Group Travel Insurance
It provides coverage to the risk of employees that need to travel a lot during employment. It provides coverage for medical risks, delayed flights, missed flights, cancellation of the trip, lost documents, or baggage, and much more.
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