ESI & Workmen Compensation Policy

Querist : Anonymous (Querist) 26 September 2010 This query is : Resolved
A Contrcator has been engagaed in our factory with compulsory Workmen Compensation Policy by an Insurance Co.
Since 2010 ESI has also been made compulsory.
One of the Contractor says he need not take a WCP as he has taken ESI Cover.

Is it okay?

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s.subramanian (Expert) 26 September 2010
No. It is not right.

Kirti Kar Tripathi (Expert) 26 September 2010
Yes, since ESI Act is already applicable to the establishment WCA would not be applicable

Jacob Pratap (Expert) 28 September 2010
The contractor is justified in saying so. Once his employees are covered under the ESI Act, 1948, it becomes the liability of the ESI Corporation to give benefits to the employees even in case of injury/death. Section 53 of the ESI Act imposes a bar against receiving compensation or damages under any other law. Since the employees will not get any benefit under WC Act, so why obtain a policy under that Act.

Best wishes

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