Madhu.T.K
Industrial Relations And Labour Laws
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Jeevarathnam
Sr. Manager Hr/admin
+1 Other

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Dear All,
Need a clarification on a point related to ESIC deduction. The rule that ESIC is mandatory for people having gross salary is less than or equal to 15k is I am very well aware of. but need clarification if the company is a Manufacturing company & employees are covered under accidental insurance then it is not Mandatory to have ESIC for them? Does it depend on the factory location any which ways? request you to please throw some light on this.
Regards,
Shubhada
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Dear, if an employee has Less than or equal salary rs. 15000/- (Gross) must be covered under ESIC. If there is no facility of ESIC dispensary/hospital then must be covered under Workmen Compensation.
On other hand u have insured the employee only for accidental insurance, which does not included health insurance and compensation for his absent day loss, but ESIC covered all the circumstances, provides optimum benefits to employees.
Dear Shubhada
For your kind info ESI limit is been revised to 21000/- wef 01 Jan 2017 from 15000/-
If any employee is drawing lesser than the ceiling limit & if your area is covered under ESI limits then yes they are forced to get covered for ESI irrespective of any health or insurance policies that they are having
1. Sir, coverage under ESI Act, 1948 and rules/regulations framed thereunder is compulsory provided that the area where the factory/establishment is located is declared/notified as covered implemented area under section 1(3) of said Act. Mumbai area is implemented area under section 1(3) and if you have any doubt, you can contact nearest ESIC office for clarification.
2.The fact that the employer has taken commercial accident insurance policy from any insurance company is irrelevant fact so far as coverage under said Act is concerned.
No medi claim policy would be more beneficial than facilities offered by ESIC. You cannot have a coverage for your existing diseases under any policy. But this is possible in ESI. You cannot enroll your aged parents in any medi claim but ESIC allow it and gives medical benefits to employees' parents irrespective of their age. Therefore, coverage of ESI is mandatory both from the perspective of law as well as for the benefit of employees and employers.
Madhu.T.K
now salary limit is increased to 21,000 for esi w.e.f. 01-01-2017.
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