Korgaonkar K A
Private Consultant On Labour Laws
Educator, Management Consultant & Trainer
3rd June 2015 From India, New Delhi
Let me first tell you that in India no insurance is compulsory except vehicle insurance.
When there is an employer-employee relationship and the employment is in factory, mine, plantation,transport establishment, construction, railway, ship, circus and in other hazardous occupations and employments specified in Schedule II of EC Act and the employee is not coverable by ESI Act, the EC (erstwhile WC) Act is applicable to such employee.
As per EC Act, employer is liable to workmen and / or his/ her dependents certain relief or compensation in case of accident to the employee arising out of and in the course of employment and causing either death or disablement- partial or total.
There is no criteria of employment in side the factory premises or out side the factory premises.
Your liability under the EC Act is absorbed by Insurance Company if you cover your employees under EC Policy.
Vehicle Insurance generally covers accidental loss or damage to the vehicle and third party.
Hope you will get answers from my inputs correctly.
4th June 2015 From India, Mumbai
As you have mentioned in your query that you have been hiring some workers including drivers for transport purpose inside the factory premises. The provisions of the ESI Act has been extended to the companies, which are engaged in the "Road motor transport" business, it is thus always advisable to hire those workers from reputed transport company.The advantage of such a step is that all the liabilies relating the the payment of conpensation is met by the ESI Corporation. In this regards, Section 53 of ESI Act,1948 is relevant which puts a bar against receiving or recovering compensation or damages under any other law.
5th June 2015 From India, Mumbai