Difference Between ESIC And Workmen's Compensation ACt - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Ravindra R. Wankhede
Dgm ( Hr & Admn.)
Industrial Safety
Administration And Payrolls
Hr Professional
Labour Laws And Financial Matters
Sr. Executive P & A
Sharadkumar C. Janvalkar
Personnel Administration
Insurance Brokers Pvt Ltd
Finance Manager
+4 Others

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Respected All Seniors / Juniors,
I need ur help to understand the difference between the ESIC Act and Workmen's compensation Act.
Hope that u will help me in this regards
With Regards
Vikas Kumar
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Workmen compensation is mainly intended for in case of death in work place,Total disablement,Total Partial disablement,Partial disablement.It will provide for monetary compensation for above cases.
Where as ESI will cover employee any accidents,hospitalization and funeral expenses and family health care for card holders etc.
Workman compensation will only helpful by paying compensation to demised employee dependents
To add to the points already mentioned, WC is regulated by Commissioners appointed for this purpose, where as ESI is a corporate body with offices all over the country.
Under WCA, The compensation is to be paid by the employer through the Commissioner whereas under ESI act, a contribution from employer and employee is regularly deposited with the ESI to create a pool to finance the various expenses such as cash benifits, medical benifits, rehabilitation etc.
The benifits under ESI is better than WCA.
Once a area is covered under ESI act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such area.
Dear Vikas ,
As per my openion , the most important diff. is that ESIC Covers you family in case of Sicknes.. Benifits, ( including Hospitalisation ) where as WC Act covers only Workers in case of Accident during the cource of & arising out of employmnet , so Scope of ESIC is wide.
In ESIC Workman has to pay his contr. beacause it is a Insurance , where as und WC Act there is no provision of Workman Contr.
D V Gosavi
Dear Vikas
What is important point is
"Once a area is covered under ESI act, it is compulsory for the employer to register itself under ESI. The WCA ceases to apply to industries in such area"
RR Wankhede
If the company is covered under ESI ,Workmen compensation act will not be applicable. the benefits will be given through by one only. YASH
Dear all,
ESIC is governed under the Statutory provision and covering the Establishment where there is availability of Hospital / Medical
Hospital Hospital.
ESIC covers all the areas including absenteeism of wages under
sickness, hospitalisation, and family coverage
Whereas Workmen Compensation policy it is only a coverage to an
workmen where there is no ESIC applicability thus it becomes moral
binding coverage of an Employer where only workmen is covered while
on duty
a] It covers only accidental absenteeism and small amount of medica
In short ESIC is having broaden aspect under Welfare scheme and statutory and Workmen Compensation is just moral binding in absence of ESIC
Hope this automatically shows difference between both.
Janvalkar Sharadkumar
Group Head - HR, Personnel & Admn

Once the area is implemented under the coverage of ESI Act 1948 and the particular factory or establishment is covered under the ESI Act, all the employees employed there in with a salary upto Rs. 15000/- are covered under the ESI Act compulsorily and they will enjoy the various cash and medical benefits provided under the Act. For those employees the WCA will not apply and they are barred from claiming both the benefits. More over if the employee once covered under the ESI Act, he has no option to choose WCA Act and the coverage under ESI Act has no optional. However if the area is not implemented under the ESI Act or if the factory is not covered under the Act by virtue of employing less number of persons for coverage under the ESI Act , then WCA will apply and it is advisable to employers to take an insurance policy from any insurance company under the WCA Act to meet any unforeseen liability under the WCA Act.
i met with an accident while working in the factiry .I loss phalanx of my left thumb. M I eligible for compensation ? If so on what basis? M working in PSU
Sirs, Just now I have joined this forum by creating password etc. I had googled for WMC vrs ESI. Hats off to the contributors, it is so very clear to me now. Great, thanks, SKSINHA
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