For employees / workmen working in an ESI implemented area, and drawing more than Rs.21,000/- (not the case of were drawing less than Rs.21,000/- and now crossed wage ceiling), is it compulsory for employer to ensure the employees / workmen by taking medical/health insurance policy/scheme, etc.? They can also fall sick, right. How to take care of their health / medical benefits? Is there any statute which put statutory liability on employers for such cases i.e. employees/workmen drawing more than Rs.21,000/-?
Companies can take insurance cover for such employees drawing >Rs21000 per month.
ESIC cover exists only till the employees draws <Rs21000 PM.
So, are you saying that there is no statute which put liability on Employer to take insurance cover for employees drawing more than Rs.21,000/-? I am looking answer from the statutory angle.
Employees compensation act will be applicable.
3. Employer’s liability for compensation.—
(1) If personal injury is caused to a workman by accident arising out of and in the
course of his employment, his employer shall be liable to pay compensation ---Chapter 2 Workmen compensation.
Thank you Nathrao. However EC will not provide medical benefits like ESIC does. Taking cue from your input, I am thinking that the best way would be to take EC Insurance Policy, with add-on insurance feature which will cover medical benefits.
Others are requested to pour in your suggestions please.
Hi Ningthoujam,
Employee State Insurance (ESI) is applicable only for employees whose monthly compensation is less than 21000 rupees.
Employees whose monthly compensation is more than 21000 rupees will be covered under the organisation's health insurance policy
Sairam Bandi
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