In a company there are about 1500 employees(on-roll). Out of it 1000 are under ESI and the rest are covered under Mediclaim and Accidental policy. Suppose there is a substantial increase of wages/salary(by virture of increase in DA or basic or new agreement) and about 900 employees who were under coverage of ESI are now exceeding the limit of Rs. 10000/-. Will it be advisable to go for the Workmen compensation or go for mediclaim policy. pl advise.
regards
NKT.
9th March 2010 From United States, Cambridge

Rkjain29
India, Calcutta
Manager - Employee Relation
Vkokamthankar
India, Pune
Asst. General Manager - Hr
Ritedarong
India, Bangalore
Compliance Expertise In Labour Laws &
NKTiwari
United States, Cambridge
Industrial Relations
Vvyas83
India, Jaipur
Hr Manager
Sreedar Srinivasan
United Kingdom, Worthing
Accounts
+5 Others

dear tiwar ji, limit for esi has been enhanced from rs 10k to 15k from 01/04/2010 with regards kscc
9th March 2010 From India, New Delhi
Dear friends can any body give me a brif of exempted and non exempted pf.pension,dli and system of contribution along the forms so that i can update myselp i will remain ever grateful ghosh
10th March 2010 From India
Hi, Could you please tell me is there any limit for Esi members to be counted like pf say for example, if members are below 20, there is no pf to be deducted mandatorily. Regards, Sreedar.S
10th March 2010 From United Kingdom, Worthing
Dear NKT,
For employees exempted from ESI you will have to think of firstly safeguarding your company from claims for Workmen's Compensation. So that policy ia s must.
As a welfare scheme if not matching equally the ESI scheme atleast offering solace to employees injured during work, a policy safeguarding them from medical expenses would also be ideal as finally you will be liable for both - being the employer.
So pls consider both for non ESI employees.
Regards
10th March 2010 From India, Bangalore
Dear Tiwari Ji,
ur thread is quite interesting & the solution given by murali dutt is also good. I wanna ask a question relating to it whether it is a statutory requirement to cover the excluded employee ( excluded from ESI) under workmen compensation.
Plz give ur responses as i have a lot of curiosity about it.
10th March 2010 From India, Calcutta
Dear all,
It is not at all mandatory to cover your exempted employees under any insurance or WC policy but if the excluded employee met an accident then the liability will be very huge. Secondly, regarding limit for ESIC exemption, ESIC has just agreed to increase it and still bill has to be put in front of parliament to be made it to a law, so, right now exemption limit is still 10,000
Please post if I am not updated and wrong
Regards
Vijay Vyas
(Manager-HR)
Noble Group
10th March 2010 From India, Jaipur
The ESI Wage celing will be increased to Rs.15K w.e.f. 1.4.10.
You may like to review the situation accordingly.
Combination of Mediclaim and Personal Accident Insurance Policy would be good choice. You may also like to add a Term Plan with suitable Insurance Cover fr employees outside the purview of ESI Scheme.
Best Wishes,
Vasant Nair

11th March 2010 From India, Mumbai
  • Workmen Compensation and Mediclaim are two different things and do not treat them as one.
  • Where provisions of ESI Scheme are not applicable provisions of Workmen Compensation Act becomes applicable. In case you want to cover the likely financial risk due to applicability of provisions of Workmen Compensation Act, you have a choice of covering those employees under Group Workmen Compensation Policy. Though coverage under policy is not mandatory.
  • Coverage under Mediclaim Insurance is not mandatory and employer can extend this benefit to employees as a non statutory benefit. But please note that, Medclaim Policy is not substitute to Workmens Compensation.

Thanks & Regards

11th March 2010 From India, Pune
As far as my knowledge runs Wormen Compensation is applicable in non implemented areas of ESI. When the coverage exceeds the limit prescribed under ESI one can go either for WC or for any other schemes which extend benefits to the employees. In case of WC the scope and benefits is very limited. So it is better to go for Mediclaim and accidental policy(financial implicaion being more or less the same as under ESI). Any further comments/advice is welcome
11th March 2010 From United States, Cambridge

 

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