If ESIC is applicable in the contract then is it mandatory for workman compensation policy?
From India, Pune
Acknowledge(0)
Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Colleague,
WC not applicable for ESI Covered Employees:
ESI is applicable for employees who draw wages up to 21K, as you know. For these employees, the accident risk, medical support, and so on are fully taken care of by the ESI Scheme based on contributions by employers and employees. The moment an employee is covered under ESI, then WC will not be applicable. The employee covered under ESI can only seek benefits under ESI, and no claim will be allowed under WC.
When might WC be needed?
However, in the case of employees who are drawing above 21K wages and are not covered under ESI, then it is suggested to have WC policy for those employees to mitigate the risk on the part of the employer who needs to compensate non-ESI employees in the event of any employment injury, disability, death, etc. If you have a WC policy, then it will protect. If you operate in an area that is not notified under ESI and is a non-operating area by ESI, then also a WC Policy is suggested.
From India, Chennai
Acknowledge(0)Amend(0)
337WC not applicable for ESI Covered Employees:
ESI is applicable for employees who draw wages up to 21K, as you know. For these employees, the accident risk, medical support, and so on are fully taken care of by the ESI Scheme based on contributions by employers and employees. The moment an employee is covered under ESI, then WC will not be applicable. The employee covered under ESI can only seek benefits under ESI, and no claim will be allowed under WC.
When might WC be needed?
However, in the case of employees who are drawing above 21K wages and are not covered under ESI, then it is suggested to have WC policy for those employees to mitigate the risk on the part of the employer who needs to compensate non-ESI employees in the event of any employment injury, disability, death, etc. If you have a WC policy, then it will protect. If you operate in an area that is not notified under ESI and is a non-operating area by ESI, then also a WC Policy is suggested.
From India, Chennai
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.