Applicability of ESI And WC Act

Dear HR Friends

I am working in a Logistics Company, we are doing transportation work for jindal, tata and monnet. In their contract it is mentione that We have to take WC policy for our employees as well as ESI coverage for them. No my question is this , if we have already taken the ESI, then why we will take the WC policy , all the benifits of WC is coverd under ESI act. Plz suggest me as it is very important for me

Sadashiv
Manager-HR

If the employees are covered by ESI then no need to take separate WC policy. However, for those employees who are uncovered by ESI for reason of their salary having been more than Rs 10000, it is better to go for Policy for Workmen Compensation.

Regards,

Madhu.T.K

Thanks for the reply

Can i go for the WC policy only, b'coz there is no ESI hospital near by our site office. At waht condition company can excempat from ESI.

Regards

Sadashiv

If your area is notified as exempted from the operation of ESI you will not be covered by ESI Act whereas if your area is covered by ESI you cannot avail exemption unless you show that your employees are getting benefits better than that offered by ESI Corporation. In ordinary circumstances an employer may not be able to provide facilities offered by the ESIC "though much of the facilities are confined only in papers". In notified areas ESI is mandatory regardless of availability of ESI Hospitals in the area where the factory/ establishment is set up. This is because, ESI benefits are available not only to workers but also to family members who may be at a place distant from the factory where the IP is employed. It is not practical to set up Dispensaries in such a way that all get easy access. However, dispensaries are available even in remote areas.

Regards,

Madhu.T.K