Hello all,

I have a question regarding ESIC. The employer has already covered all the employees under a private health insurance scheme, as per clause 14 of the ESIC Act, which states the following:

The exemption is permissible from the operation of provisions of the Act subject to the condition that the employees in a covered factory or establishment are otherwise in receipt of benefits substantially similar or superior to those provided under the ESI Act.

The appropriate Government may grant exemption to such a factory or establishment for a period of one year at a time prospectively in consultation with the ESI Corporation. An exempted application unit has to apply for renewal three months before the date of expiry of the prior exemption.

Kindly advise on how to go about obtaining the exemption from ESIC.

From India, Delhi
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Hi,

Mere coverage of employees under group Mediclaim insurance cannot be a substitute for ESI. You cannot apply for exemption by showing this as a substitute for ESI.

Employers need to prove that the establishment is providing better medical benefits, such as in-house round-the-clock hospital facilities or a tie-up with a hospital that offers all medical facilities. According to the ESI Act of 1948, the appropriate government may impose exemption on employers seeking exemption under the ESI Act. Employers seeking exemption must prove that the medical facilities and other benefits provided to employees are superior to those offered by ESI hospitals.

From India, Madras
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