ESIC or PF registration is compulsory for the organisation with 20 or more employees thus it is not mandatory for your to go for the registration with ESIC as of now.
It will not cover the medical liablity of the employer by just paying an allowance as the part of the salary. As in case of any unwanted incidence took place in which your employee get injured then the workmen compensation to be paid by the employer in absence of the ESIC also in case of maternity benefits if employee is not covered by the ESIC then the benefits are to be borne by the employer only.
Payment of Medical Allowance is optional thus it is to be decided by you if you want to go with it. Earlier employer used to give Medical Allowances in the salary CTC package so with which employees used to make a saving from the TAX but, as per latest amendments it is not a option for tax saving.
17th August 2018