Navigating Workplace Accidents: Who Covers Costs and What Are the Liabilities?

Hi Gurus, I want to know a few things regarding accidents in the office premises.

1) What if an employee is not covered under ESIC and meets with an accident in the course of employment?
2) Is the company liable to pay for his hospitalization expenses?
3) What if an employee is on a visit and meets with an accident for which he is at fault?
4) Is it acceptable if we provide Accidental and Medical Insurance for employees to avoid further liability?
5) What is the difference between premises and precincts?

I am waiting for your reply.

Dear Vinod, I would like to clarify regarding the accident in the office premises. If an employee who is not covered under the provisions of the ESI Act meets with an accident during the course of employment, then the employer is liable to bear/pay all the expenses like hospitalization and for compensation in case of any permanent and/or temporary disability.

If an employee is going for a visit and meets with an accident and is at fault, it is good if the company gets their employee insured with general insurance under the Workman's compensation policy. In this scenario, there is no liability of the employer in respect of accidents occurring in the course of employment.

Regards

Dear Vinod, Let me clarify your questions one by one:

1. If the employee is not covered by ESIC, then he would be covered under the Workmen Compensation Act, which is now changed to the Employees Compensation Act.
2. The employer has to bear all the medical expenses in case the employee is not covered under ESIC.
3. If the employee meets with an accident during the course of employment, the entire liability lies with the employer.
4. There are certain provisions where you can reduce the liability if the same took place because of the fault of the workmen.
5. In such cases, the employer cannot evade himself from the liability but can restrict the same because of contributory negligence.
6. It is always safe to take a group accident insurance scheme to reduce the liability of the management.

Thanks & Regards,
V.SRI