Respected All Seniors / Juniors,
I need your help to understand the difference between the ESIC Act and Workmen's Compensation Act. Hope that you will help me in this regard.
With Regards,
Vikas Kumar
From India, New Delhi
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16I need your help to understand the difference between the ESIC Act and Workmen's Compensation Act. Hope that you will help me in this regard.
With Regards,
Vikas Kumar
From India, New Delhi
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Workmen compensation is mainly intended for cases of death in the workplace, total disablement, total partial disablement, and partial disablement. It will provide monetary compensation for the above cases.
On the other hand, ESI will cover employees for any accidents, hospitalization, funeral expenses, and family healthcare for cardholders, etc.
Worker's compensation will only be helpful by paying compensation to the deceased employee's dependents.
From India, Hyderabad
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On the other hand, ESI will cover employees for any accidents, hospitalization, funeral expenses, and family healthcare for cardholders, etc.
Worker's compensation will only be helpful by paying compensation to the deceased employee's dependents.
From India, Hyderabad
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To add to the points already mentioned, workers' compensation (WC) is regulated by Commissioners appointed for this purpose, whereas the Employees' State Insurance (ESI) is a corporate body with offices all over the country.
Under the Workmen's Compensation Act (WCA), the compensation is to be paid by the employer through the Commissioner, whereas under the ESI Act, a contribution from the employer and employee is regularly deposited with the ESI to create a pool to finance various expenses such as cash benefits, medical benefits, rehabilitation, etc. The benefits under ESI are better than those under WCA.
Once an area is covered under the ESI Act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such areas.
From India, Varanasi
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Under the Workmen's Compensation Act (WCA), the compensation is to be paid by the employer through the Commissioner, whereas under the ESI Act, a contribution from the employer and employee is regularly deposited with the ESI to create a pool to finance various expenses such as cash benefits, medical benefits, rehabilitation, etc. The benefits under ESI are better than those under WCA.
Once an area is covered under the ESI Act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such areas.
From India, Varanasi
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Dear Vikas,
In my opinion, the most important difference is that ESIC covers your family in case of sickness. Benefits, including hospitalization, whereas the WC Act covers only workers in case of accidents during the course of and arising out of employment, so the scope of ESIC is wide.
In ESIC, the worker has to pay his contribution because it is insurance, whereas under the WC Act, there is no provision for worker contribution.
Regards,
D V Gosavi
From India, Pune
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In my opinion, the most important difference is that ESIC covers your family in case of sickness. Benefits, including hospitalization, whereas the WC Act covers only workers in case of accidents during the course of and arising out of employment, so the scope of ESIC is wide.
In ESIC, the worker has to pay his contribution because it is insurance, whereas under the WC Act, there is no provision for worker contribution.
Regards,
D V Gosavi
From India, Pune
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Dear Vikas,
The important point is: "Once an area is covered under the ESI Act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such areas."
Regards,
RR Wankhede
From India, Nasik
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The important point is: "Once an area is covered under the ESI Act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such areas."
Regards,
RR Wankhede
From India, Nasik
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If the company is covered under ESI ,Workmen compensation act will not be applicable. the benefits will be given through by one only. YASH
From India, Gurgaon
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From India, Gurgaon
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Dear all,
ESIC is governed under statutory provisions and covers establishments where there is availability of hospital/medical facilities. ESIC covers all areas including absenteeism of wages due to sickness, hospitalization, and family coverage.
In contrast, the Workmen Compensation policy provides coverage only to workmen in cases where ESIC is not applicable. This policy becomes a moral obligation for the employer, covering only workmen while on duty. It includes accidental absenteeism and a small amount of medical benefits.
In summary, ESIC has a broader scope under the welfare scheme and statutory regulations, whereas Workmen Compensation is primarily a moral obligation in the absence of ESIC coverage. This highlights the distinction between the two.
Regards,
Janvalkar Sharadkumar
Group Head - HR, Personnel & Admin
sjanvalkar@mutual-industries.com
From India, Mumbai
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ESIC is governed under statutory provisions and covers establishments where there is availability of hospital/medical facilities. ESIC covers all areas including absenteeism of wages due to sickness, hospitalization, and family coverage.
In contrast, the Workmen Compensation policy provides coverage only to workmen in cases where ESIC is not applicable. This policy becomes a moral obligation for the employer, covering only workmen while on duty. It includes accidental absenteeism and a small amount of medical benefits.
In summary, ESIC has a broader scope under the welfare scheme and statutory regulations, whereas Workmen Compensation is primarily a moral obligation in the absence of ESIC coverage. This highlights the distinction between the two.
Regards,
Janvalkar Sharadkumar
Group Head - HR, Personnel & Admin
sjanvalkar@mutual-industries.com
From India, Mumbai
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Once the area is implemented under the coverage of the ESI Act of 1948, and the particular factory or establishment is covered under the ESI Act, all the employees employed there, with a salary up to Rs. 15,000, are covered under the ESI Act compulsorily. They will enjoy various cash and medical benefits provided under the Act. For those employees, the WCA will not apply, and they are barred from claiming both benefits. Moreover, if an employee is once covered under the ESI Act, they have no option to choose the WCA Act, and the coverage under the ESI Act is not optional.
However, if the area is not implemented under the ESI Act, or if the factory is not covered under the Act due to employing fewer persons for coverage under the ESI Act, then the WCA will apply. It is advisable for employers to take an insurance policy from any insurance company under the WCA Act to meet any unforeseen liability under the WCA Act.
From India, Hyderabad
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However, if the area is not implemented under the ESI Act, or if the factory is not covered under the Act due to employing fewer persons for coverage under the ESI Act, then the WCA will apply. It is advisable for employers to take an insurance policy from any insurance company under the WCA Act to meet any unforeseen liability under the WCA Act.
From India, Hyderabad
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i met with an accident while working in the factiry .I loss phalanx of my left thumb. M I eligible for compensation ? If so on what basis? M working in PSU
From India, Delhi
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From India, Delhi
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