Understanding the Key Differences Between the Workmen Compensation Act of 1926 and the Employment State Insurance Act: Can You Help?

Hi,

Can you help me? Please tell me what the main differences are between the Workmen Compensation Act of 1926 and the Employment State Insurance Act.

Hi!

Workmen Compensation is applicable where there are no ESI facilities or hospitals available. ESI and Workmen Compensation cannot be claimed together.

The Workmen Compensation Act provides for compensation to workmen who are not covered by the ESI Act, whereas the ESI Act provides such benefits, including sickness benefits, to the dependents of the covered employees. The ESI Act absolves the liability of the employer under the Workmen's Compensation Act and Maternity Benefit Act.

Regards,
Madhu.T.K

Dear Ramakrishna,

We cannot opt for WC policy in place of ESI because ESI is enforced and mandatory in those factories and establishments which employ 10 or 20, as the case may be, drawing a salary of not more than Rs 10,000. Under the WC Act, the employer becomes liable when an accident takes place, and in order to cover the risk, a policy shall be taken. Even without a policy, if the employer can manage the compensation, he can do without a policy. However, ESI cannot be opted out.

Regards,
Madhu.T.K

It has been mentioned that whether or not an ESIC hospital exists in an area, one has to deposit the ESIC contribution. Where and how is the question. Please address.

Rgds,
Sheetal
[Login to view]

Dear Member,

It is always better to have WC policy in cases where ESI Act, 1948 is not applicable, especially for the workmen who are covered under the WC Act, 1923.

With Regards,

R.N. Khola