No Tags Found!
Dear Members, I am from Chennai, Tamil Nadu. Kindly request you to clarify my doubts as follows
1) As our Factory not covered under ESI, we opted for a GPA policy. In case of any fatal accident happened in Factory, he can claim the benefits via GPA. Is the employer also does need to pay compensation as per the Employee Compensation Act? i.e. If a company opted for the GPA is the company liable for the Employee Compensation act too?
2) Is there any ceiling amount for the Employee Compensation Act?
Kindly clarify.

From India, Chennai
Labour Law & Hr Consultant


Dear Mohan Babu,
I would like to request you to go through the Policy Document of GPA obtained. If I were correct, in case of any accident, the employee would be entitled to compensation only based on the sum assured. Whereas a policy taken under the EC Act,1923 would determine the compensation amount based on the percentage of loss of earning capacity and the wages last drawn immediately before the employment accident. Certainly the GPA cannot be a substitute to absolve the employer's liability to pay compensation in respect of death or disability arising out of an employment accident.

From India, Salem
Thanks a lot Umakanthan sir for your revert and time.
Could you please may I know that is there any substitute for EC Act, 1923?
If employee salary (Basic and DA) greater than 15,000/- , for them does EC act not applicable?
Kindly revert.
Thank you.

From India, Chennai

Dear Mohan,
There is no substitute for an EC Policy other than ESI that too, if and only if the employee is covered under it. In the absence of both, it is the ultimate liability of the employer to pay compensation to any employee falling under the definition clause of Sec.2 (dd) of the ECA,1923 read with the exhaustive list finding place in its Schedule II, irrespective of the salary drawn. However, when the monthly salary exceeds Rs.15000/-, it would be limited to Rs.15000/- for the purpose of calculation of compensation under the Act.

From India, Salem

Dear Mohan Babu,
Why your Factory establishment not covered under ESI(is factory exists in area notified for the ESI Or your factory declared exempted by appropriate Govt from ESI Or not in ESI notified area).
Simply, you can not avoid ESI on ground of GPA policy or WC Policy. Please verify, why ESI is not applicable to your establishment
In case of any fatal accident happened in Factory, your establishment may face sever complications for not having the ESI. The factory occupier or manager are responsible to pay compensation to employee in the case of Fatal or on-fatal accident to the employee claim through GPA.
Hope this would clarify your doubts.

From India, Mumbai
Community Support on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.