Is Compensation given by insurance company to an injured worker included/excluded in domestic income of India?
Is Compensation given by insurance company to an injured worker included/excluded in domestic income of India?
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No,
It will not be included in the domestic factor income as compensation is given by the insurance company to the employee and not by the employer.
Explanation:-
Only factor income received against factor services is included in domestic income.
The injured worker does not provide any factor services against the compensation received from the insurance company.
Thus, it does not add to any current flow of goods and services in the economy.
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