Industrial Relations And Labour Laws
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Deputy Manager - Hr
Hr & Admin
Manager - Hr & Ir
If any employee is getting wages within coverable limit ( presently Rs. 15000/- per month), then he/she is definitely coverable under ESI Act, 1948 and there is no way for waiver. However, there are some provisions in said Act in Chapter VIII from Sections 87 to 91A under which on fulfilment of certain conditions the appropriate government can grant exemption. In practice, it is difficult and not possible to satisfy the conditions of such exemptions as laid down in said provisions of Act as mentioned above.
Further the facilities under any mediclaim policy of commercial insurance company are very limited in scope and are no match for benefits as available under above Act.
18th May 2014 From India, Noida
But, any employee draws Rs.15000/- above will not be covered under ESI.. Such persons, you can avoid ESI
18th May 2014 From India, Hyderabad
As per Sec 2(1),it is the obligation on the part of employer to cover its employees under the provisions of ESI Act -1948 Rules whose wages are less than Rs.15000/- Per month.You cannot take any sort of exemption under the provisions for ESI Coverage. You have to exempt only those employees whose wages are above Rs.15,000/- Per Month.
Hope it is clear.
Thanks & Regards,
V R RAO PULIPAKA
19th May 2014 From India, Chennai
As told by other members under the provisions ESIC Act there are certain conditions on which exemption may be taken by ESIC authorities. Mediclaim policies have certain limits. There are certain terms & conditions on which claim is being reimbursed. But in ESIC, employee is insured and get benefits which are not given by any mediclaim e.g. there is no limit of claim in ESIC which is used by the workers in case of prolonged and serious deceases. Large organisations which have there own hospitals can take exemption on ground of certain facilities which are better than given by ESIC.
20th May 2014 From India, Lucknow
Only ESI act is in force and there are no other laws which have cover mediclaim as part of it. There are many public and private sectors offering mediclaim services for corporates where it would be very less interns of premium and all disease and ailments are covered. So you can check with your management and get one for those who crossed the ESI limit.
As part of the exemption, one is to have a full fledged hospital and second one is, there are few areas/locations are not covered under the preview of ESI.
20th May 2014
Medi Claim policies do not guarantee any benefit but do work with a lot of hidden parameters for admitting claims. I think only ESI will give free medical assistance (cashless) to an employee, his family members and dependents from his date of joining without going back to the history of illness and the age of the member or dependents. Medi claim policies will not cover existing diseases and your parents of a certain age but for ESI there is no such bar. You can not imagine a cashless surgery under medi calim if you have not paid premia for a certain period unless it is a tailor made one costing a handsome amount by way of premium.
However, you should not expect the same care and hospitality from the ESI Corporation as are highlighted in their website or publicity posters, perhaps due to administrative flops.
21st May 2014 From India, Kannur