Is It Necessary To Have Mediclaim Policy If Employees Are Covered Under W/C Policy ??

Dear All,

My organization comes under the Factories Act and does not fall under the ESI area. We have already taken a Workmen's Compensation policy for all workmen. Is it necessary to take a mediclaim policy even though I have already taken a W/C policy? What is the compliance?

Thanks,
Reshma
9930368108

Dear Reshma,

Mediclaim policy is not mandatory. It is the responsibility of the employer to take care of the compensation part; hence, in the absence of ESI, it is better to cover all the employees under WC policy; otherwise, it will be very costly for the management.

In the absence of ESI, the maternity benefit needs to be borne by the management as per the Maternity Benefit Act.

Thanks and regards,
Kameswarao

Dear Sir,

Thank you very much for your assistance. There is one more question I have following our discussion. You mentioned that the coverage provided is applicable only in the event of death, partial, or permanent disability. If hospitalization occurs, the company is not able to provide any assistance. Am I correct in understanding this?

Secondly, could you please guide me on where I can find information regarding the Workers' Compensation Act and the details of the mediclaim policy?

Regards,
Reshma
9930368108

Dear Ms. Reshma,

Even in the event of death or partial/permanent disability occurring during the course of employment, it is the liability of the employer. In the case of hospitalization, except under occupational hazard, the management is not responsible; however, on humanitarian grounds, first aid should be provided.

Workers' Compensation (W/C) is an act that can be obtained from any bookstore selling law books. Mediclaim is a health insurance policy available from companies like ICICI, LIC, New India General Insurance, among others. If you require further information, please contact me at my email address kraos_1954@yahoo.co.in.

Thanks and regards,
Kameswarao

Reshma, you can contact me for information on mediclaim and other products. Can you tell me your employee strength and the location?

If an employee in the company is about to become a father, is paternity leave extended to him?

Hi Ramneet,

Only female employees are eligible for maternity benefits. Some companies provide 3-5 days of paid leave as paternity benefits.

Regards,
Mahesh T. Nair

Hi,

Firstly, the question itself is not understandable. If a company falls under the Factories Act, how can you avoid paying ESI unless all the workmen are earning more than ₹10,000?

Dear Mr. Sundaram,

If the area where your factory is situated is quite far from the ESI dispensary, then the ESI Corporation won't cover your organization under the ESI Act because it will be difficult for the ESI to extend the benefits, even though you have 10+ employees in your organization. Some organizations, like BHEL, which have their own fully-fledged hospitals, are not required to cover their employees.

I believe you now have a clear understanding.

Regards,
Kameswarao

In the absence of ESI, we are supposed to take WC Policy. Can we take GPA in place of WC? What is the legal stance on this?

Prabin