Is Workmen's Compensation Necessary If We're Already Covered by ESI? Seeking Advice

Dear Colleagues,

I am working in a Real Estate Development and Construction firm, overseeing all the statutory requirements. We have registered ourselves for EPF and ESI and have been allotted the codes.

The client is asking us to register under the Workmen's Compensation Policy. I believe that since we are already covered under the ESI act, this policy is not required. Please provide your valuable guidance.

Khatib

Hi,

As per the Employees' State Insurance Corporation (ESIC) Act, employees whose salaries are up to Rs. 15,000 per month are covered under this act. Employees earning over Rs. 15,000 shall not be covered by ESIC, so it is advisable to provide coverage for those employees under a Workers' Compensation (WC) policy.

You may need to deploy some supervisors and engineers on the site to supervise and guide the construction activity. The risks in the construction industry are high, so clients may request this. To mitigate risks, it is recommended for the client or employer to take preventive measures by providing WC coverage for those employees who are not covered by ESIC.

Thanks and regards,
Kamesh

Hi Khatib,

Once your employees are covered under the ESI Act of 1948, it becomes the liability of the ESI Corporation to provide benefits to the employees even in case of injury or death. Section 53 of the ESI Act imposes a bar against receiving compensation or damages under any other law. Therefore, there is no need for a Worker's Compensation policy.

Staff and supervisors may be covered under group insurance policies.

Best regards