Dear all, Please suggest, Our factory is located in a middle of a village ,where there is no ESI hospital coverage. (and we dont cover them with ESI on thier payrolls.) 3 of our member met with accident on the highway. Other members passing by took them to hospital and our MD has paid all the expenses so far for their medical expenses and operations etc. "I believe since the accident took place outside my factory . we are not liable for them."
My Question is "Are we in any other means or laws Liable?"
Please suggest.

From India, Coimbatore
Since ESI Coverage is not there, you can go in for Group Medical Insurance and Group Personal Accident coverage. There are many Insurance Companies offer good package and it covers few existing problems of employees (liek Diabetes, BP etc).
There are certain Insurance Brokerage Firms like Marsh India who squeeze with the Insurance Agency the premiums to be paid. You do not have to pay any amount to the Insurance Brokerage company.,
Please do look in to it and try to implement. This coverage can be for 1 (employee) + spouse + 2 children.
This gesture will be of great facility to boost the morale of the Company and the Employee.
Since MD is such a nice person he will definitely implement this facility.
Wishing you all the very best.
Sundararaman, B

From India, Madras

Your query is unclear. You are saying in your communication,"where there is no ESI hospital coverage. (and we dont cover them with ESI on their payrolls.)" Now it is not clear if your factory is located in the geographical area notified under ESI Act. As you say it is located in the middle of the village- what does it mean? Whether it is in the middle of the village or in the end of it does not matter at all. When you say, "we dont cover" - it is not matter of your wish rather it is compulsory to cover all the employees including contract workers, receiving salary/wages below Rs.15000/-. ESI Act has been amended and now the accidents caused during commutation to work and back are considered work related and paid benefits to the covered IPs. Under EC Act, too, victims can claim compensation and depending up on the merits of the case, the Commissioner may decide. You have not given information if the victims were traveling in the vehicle provided by the factory. I think reply to your question is not as simple saying, no no, you have no responsibility.
From India, Coimbatore
I understood your question.
I think you would be aware the Workmen Compensation Act, will come into force when ESI coverage is not there, right?
Now, to know whether you are liable for compensation under W.C. Act, you need to find out the distance from your office where the accident occured.
I remember a case law that an accident occured within 1.5 Kms radius from the work place is construed to be an accident occured arising out of employment. Beyond this distance, will not be considered, and the employer will not be responsible to pay compensation.

From India, Madras
wherever there esi is not in force workmens compensation is mandatory for a factory
workmens compensation covers work related accidents only
if you take a group personal accident policy for all employees it will be beneficial for all employees
but you should state that the policy should cover 24hrs and not only while on duty
if you send you the exact sequence, we will be able tot ell you what your liability would be?
krishna rao

From India, Madras
As per law while employee coming to office from home and after over the office hours while going to home if any accident occurred that responsibility for management.
From India, Hyderabad
Please refer to attached document which is the latest amendment on ESI Act (July 2010). Point no 3 is of relevance to the discussion. Regards, Shweta
From India
If the employees are coming in company's vechiles or company arranged vechile, the employer is liable to pay. Moreover, when employees are not covere under ESI, they should be covered under Workman's compensations Act alternatively.
Since three of employees had a accident altogether, its seems all were coming in company arranged transportations.

From India, Delhi
If u don't have the coverage of compensation of the employees regarding accidents under ESI then you should introduce the Group Health Insurance Scheme in your company to facilitate the employees. In this way you can avoid the involvement of your employer day to day and it would be easier to HR/Personnel department. As far as Group Life Insurance is concerned, it is a necessary for all the organizations across the board in Pakistan, and Compensation Act will be applicable if any amputation/injury or death caused within the organization during working hours or traveling to office/workstation or from office/ workstation to home.
Tanveer Ahmad Malik

From Pakistan, Lahore
Dear All, As per workmens compensation act, the employer is responsible for compensation as the intention of the employee was towards his work place Regds,
From India, Pune

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