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ESI Vs WC CLARIFICATION REQUEST - CiteHR

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renga.vrajan
Ours is a service Industry and we depute employees to customer sites/factories for carrying out mechanical related jobs in earthmoving equipments. Whereas our deputed employee is covered under ESI, if he is deputed to a factory, which is located in ESI non-implemented area, the factory authorities are insisting for WC Policy coverage for that employee to permit him into their factory premises for work. of course, the employee carries ESI Pehchan card with him always. How to solve this issue?
From India, Bangalore
arnab.dasgupta1983
44

Dear Friend,
In case you are deploying workmen in ESIC Non implemented areas,you must cover the concerned with Employee's compensation (erstwhile Workmen Compensation).
You need to cover up those employees with WC immediately and on completion of the ongoing ESIC contribution term ending in September you may exclude these employees from ESIC.
Alternatively you may cover all of your employees with Group Insurance Policy but the same shall not cover up "Death cases".

From India, Chandigarh
korgaonkar k a
2555

Dear renga.vrajan,
I appreciate the reply of Arnab ji.
In non-implemented area, any accident takes place, the employer is liable under the Employee Compensation Act to pay the compensation. Therefore, it is suggested to cover the employees engaged in non-implemented area under the WC / EC policy.
It is not mandatory to cover the employees under the policy but it is mandatory to pay the compensation as per the Act. In absence of policy employer has to pay from his own pocket.
Thanks and regards.
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from

From India, Mumbai
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