PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Radha Krishna Panda
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For your kind information if your inustry is covered under E.S.I act you need not bother about W.C as W.C. Act is not applicable to the industries which have ESI coverage further there is no W.C Office. The appelant authority under W.C is the Dy. Labour Commissioner of the area where your Industry is located.
Regarding other units you can register your industry under ESI of the respective area/state and if the revenue area is not covered under E.S.I than W.C will be applicable so you can go for Insurance coverage of your employees offered by GIC to mitigate financial burden in case of eventualities.
deepak thukralONE OF THE BENEFITS WHICH ACCRUE TO AN EMPLOYER DUE TO THE APPLICABILITY OF THE EST ACT, 1948 IS THE EMPLOYER IS ABSOLVED OF ITS RESPONSIBILITY UNDER THE WORKMEN COMPENSATION ACT, 1923 AND MATERNITY BENEFITS ACT, 1961. ESI ACT, 1948 IS APPLICABLE ALL OVER INDIA INCLUDING THE STATE OF JAMMU AND KASHMIR. SINCE YOU ARE COVERED UNDER THE ESI ACT AND HAVE REGISTERED YOURSELF UNDER THE SAID ACT, YOU CAN MAKE THE EMPLOYEES POSTED IN JAMMU AND DAMAN MEMBERS OF THE ESI. FOR THIS YOU HAVE TO GET A SUB CODE ALLOTED FROM THE REGIONAL OFFICE OF THE CONCERNED AREA. THUS YOU NEED NOT REGISTER OR INFORM OF AN ACCIDENT UNDER THE WORKMEN COMPENSATION ACT, 1923 TO THE COMMISSIONER. AS REGARDS THE OTHER EMPLOYEES WHO ARE NOT COVERED UNDER THE ESI, YOU CAN GO FOR A SUITABLE POLICY FROM THE GIC.
From India, Chandigarh
radha krishna pandaAlthough the ESI act has coverage all over India the revenue area of coverage is notified and covered. The act may have coverage in a municipal area but it may not extend to a revenue village or block. If it happens so you cannot register your industry under ESI Act if the respective area does not have notfied coverage.
Workmen Compensation act wa enacted in 1923, decade before ESI Act was enacted in 1946 and implemented from 1950. The earlier act put the onus entirely on employer in case of accident but later act was more modern and based on insurance principle and put onus on independent agency under government removing all liability for employer who pay a small contribution. The ESI act also included various other benefits, like medical care for self and family member, cashcompensation in case of normal sickness, maternity, funeral expense and so on in addition to injury and death. I am giving below a clarification to a specific question raised by a gentleman.
The moment your factory or establishment si covered under ESI act, there i no liability whatsoever under workmen compensation act for those drawing 15000K or below, even if you have failed to register or pay contribution to such employees coverable under ESI Act. So if you have included such employee in insurance contract with insurance companies to meet Workmen compensation claim, it is sheer wastage of premium paid and better to remove such employee from insurance contract and limit private or contractual insurance only for those not covered under ESI Act.
I am giving below a clarification given by me today to one gentleman ho made a specific query on this subject.
["Dear Shri Manoj Dixit
If a person is covered or coverable under ESI Act (whether actually registered or not), such person or his dependent are barred from claiming benefit under any other act including Workmen Compensation act and they can only get benefit from ESI Act. I am giving two section of ESI act of which section 53 specifically bar claim under WC act.
"53. Bar against receiving or recovery of compensation or damages under any other law  .- An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.]"
"61. Bar of benefits under other enactments .- When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment"
In the instant case mentioned by you, the deceased met with accident outside factory. If he a traveling on official work, then he i on duty and will get ESI benefit. Check the FIR and other record to know whether he was on duty travel. Company may have paid duty travel, mahzar may show paper, document or material to show this.
If he was coming from his residence to work place in the normal route and time or returning to home (without any deviation) it is also treated as "employment injury" by virtue of amendment in 2006 and death pension is available in such case after thi amendment.
There are several judgement from Supreme Court and HC on this issue stating that workmen compensation si barred and only ESI compensation is to be claimed from ESI Corporation. ESIC itself accepted this and filed affidavist accepting such claim. Please refer to
1.. Bharagath Engineering vs. R.Ranganayaki and another reported in (2003) 2 SCC 138.
2. HALLMARK INDUSTRIES
DEPUTY COMMISSIONER OF LABOUR -1
EMPLOYEES STATE INSURANCE CORPORATION
by Madras HC on 8 Jan 2011 in W.P.No.21622 of 2009
Personally I feel it is very unjust provision and only unfairly help the insurance companies. Once insurance premium is paid there was no reason to give insurance companies an unfair advantage. But that si the law as it stand now!"
O. Abdul Hameed
Formerly Additional Commissioner ESIC, New Delhi
From India, Coimbatore
Rajnish Sapraif the employee is getting salary more than 15000/- for that WC act is applicable if the ESIC act is already aplicable for the salary less than 15000 p.m
Kindly confirm the same will be highly obliged...
From India, Delhi
hitendr@polymathI just met with an insurance advisor for group insurance. I was about to go for goup insurance; however, upon going through this post, I will have to rethink over it and do the needful. Information given here is really very much useful. I would like to thank for posting such informative material. Thanks.
From India, Chennai
pon1965You are confused between workman compensation Insurance coverage and Group Insurance.
The workmen’s compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy the obligations imposed by the worker’s compensation statutes. It is compensation payable under a scheme set out in the Workmen’s Compensation Act of India, monitored by the Ministry of Ladour.
It is benefit given to the employees as a gesture to safeguard the families future. It is not mandatory.
From India, Lucknow