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RAVICHANDER RC (ASST.MANAGER - ACCOUNTS)     10 June 2012

Workmen compensation policy vis a vis esic scheme

Hi,

I require clarification on workmen compensation viz-a-viz ESI

A company doing contracting work engages sub contractor  to undertake specific project, which may take 2 to 3 months for completion.

To cover the sub contractors against risk of accident, permanent or temporary disability, workmen compensation policy is taken  from the government owned insurance company instead of covering them under ESI scheme.

Will the ESI authorities accept the above or do we need to cover them under ESIC scheme only. Please clarify.

 



Learning

 4 Replies

Kumar Doab (FIN)     10 June 2012

It is felt that;

--If the area and site where the contract workmen are working is covered under ESI Act, then you should complete the formalities and cover them.

--In case a situation arises, employer may have to pay huge compensation. WC policy shall be useful.

If your company has engaged a Labor Consultant it shall be approrpiate to seek advice.

Valuable advice of learned experts/members is sought.

V. VASUDEVAN (LEGAL COUNSEL)     10 June 2012

ESI is mandatory for workmen, even if the contractor has taken a WC policy. ESI is a broader insurance cover for for the workman, including medical and other benefits and also the compensation for workplace accidents. Once the employees are covered, there is no need for seprate WC policy.

Vasudevan

YRKOTESWARARAO (HR MANAGER)     11 June 2012

hi, 

 

workmen compensation policy will be taken irrespective of category.where there is no applicabltily of ESI there you can go for this .

if the employees were engaged through contractor, they will be taken  by contractor for  esi coverage.

If the work is for 2 or three month , you can take registration temporary provisons are there please discuss with ESi authorities.

 

where there is applicability of ESi, there claiming workmen compensation is not possible.any clarifications please consult with your legal consultant

 

koteswara rao

Niket Shah   21 September 2018

Dear Sir,

Is there any documentation for this?  That, if ESI is applicable and already availed, than WC is not required or eligible?


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