What are the statutory norms linked with medical and accident insurance for employees?

I have been working with several organized industries for over 15 years. Recently I have taken up an offer with a start-up organization. My CTC was mentioned flat and the deductions happening on my salary is my income tax. Recently out of great struggle the management has decided to bring in PF and insurance benefits to its employees.

Now comes the problem. I have opted for a medical cover of a good sum for my family and we have medical insurance suggested by the management for its employees which seems to be not so beneficial. As my CTC is fixed the premium will be deducted from my current salary, affecting my take-home salary. As I have a good one, I wish to stay away from this and the management is forcing to take it and states that this is a statutory requirement as per the Factories and establishment act.

Kindly help me to understand the requirements for Medical and accidental insurance

From India, Chennai
Labour Law & Hr Consultant


Better had you mentioned what your job is - whether a workman or a supervisor or a managerial cadre employee and what your employer's establishment is.
As far as I know, the only statutory insurance to be taken up jointly by the employer and employee is that of ESI that too applicable to factories and other notified establishments in respect of those employees whose monthly salary/wages is Rs.15000-00 or less.
Therefore, your employer has no right to compel you to take up any Life Insurance Policy or Health Insurance Policy of his choice particularly when you already having an Insurance Policy. Better try to convince your employer politely. When you are not availing the insurance benefit, no amount can be deducted from your CTC.

From India, Salem

The Wage ceiling for ESI is Rs:-21000/-
From India, Hyderabad

Thank you, Satyanarayana, for your correction.
From India, Salem

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