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Respected Senior and my friends.

Please help me or give me the details of the main difference between ESIC and the Workman Compensation Act.

Does the Manufacturing industry require ESIC or WCA POLICY?

Your suggestion is more important to us.


From India, Yamunanagar

Dear Colleague,

ESI and Employees Compensation ( WC) are equally applicable for Manufacturing as detailed below and it operates in the absence of the other:

1. ESI is applicable to all NOTIFIED areas( Revenue Villages) which are pre-notified by the ESI Corporation and for those Employees whose Wages are Upto 21000/- Per month. For those employees who are working in an area which is not notified by ESIC or whoes Wages is more than 21,000/- Rupees per mensum, then what happens.........

2. For those employees who are getting salary or wages over 21,000/- rupees per mensum as well as those factories located in revenue villages not covered or notified by ESI corporation are to be Covered under Employees Compensation.

3. For those employees who are covered under ESI the provisions of Employees' Compensation will not apply and they have to get benefits or remedy only under ESI and not under his choice of preference. For example an employee who is covered under ESI has to avail benefits only under ESI and not under Employees' Compensation.

Hope this clarifies.

From India, Chennai

Now point I will add to what Dr. Shivakumar said

The compensation under Employee Compensation Act (earlier called Workman Compensation Act) is huge, specially for young workers. the maximum compensation can go to as much as ₹ 40 lakhs and there is unlimited medical cost payable. Therefore in order to avoid the risk to the business, it is better to take a Workman Compensation Insurance Policy.

Note, a normal policy, accident policy or medical reimbursement policy is not going to cover cost under Employee Compensation Act. Courts have already decided that the compensation is payable even if there is insurance money paid under individual policy, group policy or accident policy.

From India, Mumbai

Many many thanks so much for perfect information and details discerption. Best Regards MONU DHIMAN
From India, Yamunanagar
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