Workmen’s Compensation vrs Group Personal Accident Policy


Which cover is appropriate to protect my business against any financial loss as a result of employee accident resulting in  injury/death at the workplace?

Many employers find it difficult to get the distinction between workmen’s compensation policy and Group Personal Accident Policy. Usually, a lot of questions comes up when employers are deciding the appropriate insurance cover to protect their employees’ against injury / death at the workplace.

This article will help you have more insight into the difference between these two policies and the various covers they provide. This will enable business owners to patronize the right insurance cover for their employees’ by taking into consideration their operations.


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 / death 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 governing the policies

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 organization’s employees. A single employee can be covered under WC insurance policy. GPA is for any organization’s employees. Cannot be bought for a single employee but only for a group of employees. An example is three or four employees.

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 occured 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.


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.

>>>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. He is a Manager at Star Assurance Company Limited. He can be reached via +233249236939 and or [email protected] / [email protected]

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