Rupendra Started The Discussion:
Hi Friends,

I have one confusion, as per my understanding , medical insurance is compulsory or i must say every employer is suppose to provide the medical insurance to all their employees.(As per Law)

Please correct me?????

Rupendra Mehta
Posted 22nd May 2008 From India, New Delhi
Hi Rupendra,

That thank you was a mistake, i didnt intend to do it.

For the same the employer provides the esi service as well the medical is included in the CTC.

Some MNC's do provide medical insurance as well.

Hope the above sorts your query.


Posted 23rd May 2008 From India, Thana
Dear Aj,

thanks for your reply, i know as per ESI every employer is liable to provide medical insurance and some of the MNCs provides but here my intention is employer is bound to provide this insurance to employees or its on employer's wish. (means there is no any such law except for ESI)

Posted 23rd May 2008 From India, New Delhi
Hi Rupendra,

As far as my knowledge permits me to comment.

The employer is not bound by any law to provide medical insurance other than ESI.

Though there is a law in case of health hazards caused due to working in factories because of continous exposure to chemicals, the company is liable to cover the entire medical cost.


Posted 23rd May 2008 From India, Thana
I have the same opinion that there is no law for compulsory medical insurance other ESI . but If somebody is injured while performing his duties he is covered under workmen compensation act.
Posted 23rd May 2008 From India, Lucknow
Hello Friends,

Health insurance is health care provided by an employer. When a company provides health insurance benefits, they pay for all or part of the health insurance premiums for their employees. Employers are not required to provide health insurance coverage to employees. Health insurance is typically a matter of agreement between an employer and employees. By definition, health insurance coverage is an employee welfare benefit plan established or maintained by an employer or by an employee organization like union, or both, that provides health care for participants and their dependents through insurance coverage or reimbursement.

Regards Jyoti
Posted 19th April 2010 From India, Delhi
Insurance for employees is not a compulsion for the employer. However, the scenario is changing quite fast and a lot of companies are opting to insure their employees. Recently, the International CII Health Insurance Summit was held in Delhi and the same was discussed.

Read the report for more insight on employee health insurance. Hopefully, things will improve further in the future.
Posted 12th November 2010 From India, Mumbai

Health Insurance as of now is not mandatory .But ESI which is Health Insurance provided by the Central Govt is mandatory for employees coming within a salary bracket .

As a welfare measure Medical Insurance is provided as otherwise Corporates would need to evolve a scheme for its Staff to re-imburse the cost of treatment for major illness.

Posted 12th November 2010 From India, Bangalore
Health Insurance is now being viewed more as an employee attraction and retention tool. With increase in health insurance premiums over the past 3 - 4 years, many companies were seen as reducing benefits especially towards coverage of parents. Much of employee benefits in insurance is now typically being driven from industry specific practice ( it is seen as a given in IT and ITES industries - providing relatively more liberal benefits, this in comparison to Manufacturing sector), size of the company and its premium paying capacity, any domestic or international employee benefit policies ( especially applicable in MNC's) etc.
There was a recent observation by Mr. Montek Singh Ahluwalia suggesting that health insurance should be made mandatory for the organised sector but its a different matter to finally seeing it implemented. You should note that at National Policy framing level, they see the uncomfortable truth with only about 2 % population having any form of private commercial health insurance.

Will be glad to answer any further specific query you may have on designing a health insurance policy, insurer selection or administration of the program.

Regards, Deepak
( Subject Matter Expert - Health Insurance )

Posted 13th November 2010 From India, New Delhi
Dear All,

Hope you all doing Good,Still i have an doubt,First of all i would like to tell about my company,its a logistical back office,We have a very big view about our company in future,now 10 members are working,thing is they are not detecting any PF,ESI,INSURANCE but as a hr i would like to provide some benefits to my staffs so please suggest me in a better way friends.I just want to know, now is that insurance is mandatory or what if its mandatory mean,i would like to know which act it was made.Waiting for your auspicious reply,

Posted 17th October 2012 From India, Karur
Good morning all:
My company is a software development company and currently we have a strength of 15 employees. We do not have any PF,ESI,INSURANCE but as a hr i would like to provide some benefits to our employees. Can any one please suggest or advise me on group medical insurance or ESI or PF or EPF...
Thanks in advance,,
Posted 4th January 2013 From India, Mohali
Dear John & Sowmya,

You both have the same query. As you said your org is small and looking for a expansion in future, there are few things which you need to do -

1) PF should be provided to all the employees. It should be visible in employees salary slips and your company should register it under the Company Act 1956. Your owners shud check under which act they come. 12% will be employees contribution ( to be deducted from the gross)and equally from employer also ( to be shown in the CTC).

2) ESI is important for all the employees who come under 15000 pm Gross. 4.75 % of gross is employers contribution (to be shown in the CTC) and 1.75% of gross is employees contribution ( to be deducted from the gross).

And also need to check the Gratuity also because it is also important to provide to all the employees. Please check Gratuity Act. Also check Minimum Wages of your State. All employees should get it.

Any further query do ask.

Posted 24th January 2013 From India, Bangalore
Hi Rupendra,

Pl be informed that Employer is not bound to get Medical insurance for the employees however, yes if any accident or injury happened with any employee in the office/factory premises, employer is completely liable for his medical treatment.

Secondly, ESI is a compliance part which have to be fulfill according to the salary slab & medical amount showed in salary upto 1250/- per month is for tax exemption.

Posted 28th January 2013 From India, Delhi

Like John and Soumya, I am also facing same situation. I am working as a Administrative in newly built organization. Presently we are only 5, and hiring would start soon.
Further, I would like to inform you that we do not fall under ESI act as per salary paid to staff. But for employee's benifit we are planning for Insurance Policy.
We are not providing Medical Allowance to employees neither its mention is salary slip.Following is my query:

1) Can any one suggest me govt. insurance is better or Pvt. insurance? Can you name any better insurance company
2) Can employer can deduct salary for Sick leave? or its Paid leave?
3) or without providing Health Insurance facility to employees, we can give specific medical allowance every month to employees and same would be mention in their salary slips.
4) Or if Sick leave is paid leave then No need of medical allowance and Health Insurance?
Posted 28th February 2013 From India, New Delhi
Thank you Shalini, much appreciate your feedback on my query.
Posted 11th March 2013 From India, Mohali
Dear All,

Still i have a doubt that E.S.I is applicable upto 1.8 Lac per anum( package)employees as per my knowledge so companies in order to cover health insurance for all they are going for medical insurance.Is this a right thing to do? Kindly clarify. I hope seniors will give me their valuable suggestions on this.

Sai kumar.
Posted 25th May 2015 From India, Hyderabad


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