I work for the BPO industry and have some query regarding ESIC. After the ceiling of ESIC is being raised from Rs.7,500/- to Rs.10,000/- we have more employees who come under the ESIC cover.
We are currently giving the benefit of Medical Insurance to our employees (this is in addition to the ESIC cover for those employees who are eligible for it as per law). The Medical Insurance benefit is as per the level / position one holds in the company and the Insurer is Oriental Insurance. The employees at the lowest level are covered maximum upto Rs.50,000/- p.a. The level of coverage is given below:
Level 1 to 5 Rs.50,000/- only employee is covered
Level 6 to 10 Rs.1,00,000/- only employee is covered
Level 11 to 15 Rs.2,00,000/- employee + spouse + two children are covered
Level 16 to 20 Rs.5,00,000/- employee + spouse + two children are covered
The employee can claim for the above benefit if they are hospitalized in a 15 bed hospital for atleast 24 hours. This is also a cash less facility in case the employee goes to a network hospital.
I just wanted to know if the Medical Insurance benefit can be used in lieu of the ESIC.
Is there any law that says that if the employer offers better benefit than ESIC, then it is not necessary to cover the employees under ESIC.
The reason I want to know this is because there are employees who are not happy with the services of ESIC and they feel that employees contribution of 1.75% that is deducted from their salary towards ESIC is of no use to them.
Could any member of this group help me in my above query.
Regards,
Kuldeep Singh
We are currently giving the benefit of Medical Insurance to our employees (this is in addition to the ESIC cover for those employees who are eligible for it as per law). The Medical Insurance benefit is as per the level / position one holds in the company and the Insurer is Oriental Insurance. The employees at the lowest level are covered maximum upto Rs.50,000/- p.a. The level of coverage is given below:
Level 1 to 5 Rs.50,000/- only employee is covered
Level 6 to 10 Rs.1,00,000/- only employee is covered
Level 11 to 15 Rs.2,00,000/- employee + spouse + two children are covered
Level 16 to 20 Rs.5,00,000/- employee + spouse + two children are covered
The employee can claim for the above benefit if they are hospitalized in a 15 bed hospital for atleast 24 hours. This is also a cash less facility in case the employee goes to a network hospital.
I just wanted to know if the Medical Insurance benefit can be used in lieu of the ESIC.
Is there any law that says that if the employer offers better benefit than ESIC, then it is not necessary to cover the employees under ESIC.
The reason I want to know this is because there are employees who are not happy with the services of ESIC and they feel that employees contribution of 1.75% that is deducted from their salary towards ESIC is of no use to them.
Could any member of this group help me in my above query.
Regards,
Kuldeep Singh