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Dear All,
In my company there are approx. 250 employees of staff and workers category. ESIC scheme is not applicable on this company. In regard of the Medical Safety of employees I have few queries which read as below:
1. Is it compulsory now to cover the factory under WC Act?
2. If WC Act is not compulsory then what should be other measures to ensure the medical safety of all employees?
3. What is the procedure to take up the mediclaim policy for all and which company provides the maximum benefits as far as mediclaim is concerned?
4. What could be the consequences if we do not opt any medical safety options?
5. If we go for mediclaim policy, should we deduct the annual premium from the salary of employees or it will be added from employer side only?
Please note that average salary of staff is Rs. 13000/- and average age of staff is 28 years.

I am seeking for your valuable advices on urgent basis as I need to recommend the best to my management soon.
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Dear sunil
you should first of all ascertain whether the situation of the factory is under the jurisdiction of ESI or not, if it comes under ESI jurisdiction you have to register the factory with ESI. If the Factory is not situated in the jurisdiction limits of ESI then you should go for WC policy for your workers/employees.
Regarding Mediclaim coverage, you can take a policy on behalf of your employees as group policy-regarding mediclaim premium amount - you can pay on behalf of the employees as a benefit or you can collect/deduct the amount from the employees salary and pay the amount.
As per WC act you are liable to pay compensation to the employee/worker if any untoward incident(like death/disablement) took place during their employment
regards
ratan
Dear Ratan,
Our factory is out of the jurisdiction of ESI and we have not gone for WC yet. In this case if we don't go for WC at all then mediclaim policy can be a alternative of WC or not? Or is it mandatory to go for WC irrespective of mediclaim policy.
Dear sunil,

You should first of all know the difference between Mediclaim policy and WC Policy. Mediclaim policy is not a benefit policy i.e. it only reimburses the accidental, disease, illness hospitalization expenses whereas WC is a different policy which pay compensation to the employee while during the course of employment any death or disability arises. The compensation will be decided by the Honorable W C commissioner, it depends on the age, wages- at times the volume of compensation will be high for which company may incur huge expenditure. That is why it is always better to take a WC policy for employees when they are not covered under ESI.

Regarding Mediclaim policy, if no death or permanent disability was occurred, but there is an accident or disease or illness which necessiates hospitalization then WC will not pay any compensation but Mediclaim Policy will come to your rescue. It will reimburse the expenses for hospitalization for said accident, disease or illness. But, this Mediclaim policy is not mandatory. It is your option and is a benefit you may extend to your employees by paying the entire premium amount or collect the premium amount on instalment basis from the employees.

if u require any assistance in this regard pl revert back to me
ratan
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