Who Covers Accident Expenses for IT Employees Without ESI Under the Shops and Establishment Act?

Respected Seniors, IT Company comes under the Shops and Establishment Act. Employees of the company go outside the company for any work related to the company, and there is no ESI coverage for any employee. In the event of an employee getting into an accident, who is responsible for their expenses? What are the employees' benefits under this act?

Thank you.

When an employee is going for any company-related work and meets with an accident, the company has to pay the medical expenses if the employee is not covered under ESIC, a mediclaim policy, or a GPA policy.

Coverage in IT Companies

Normally, in IT companies, most employees' salaries will be more than 15,000, so they will be covered under a mediclaim policy. For employees earning less than 15,000, they will be covered under ESIC. The company also takes out a group accident policy for employees in the case of death or disablement benefits.

Regards

Respected Seniors,

IT Company comes under the Shops and Establishment Act. Employees of the company go outside the company for any company's work-related tasks, and there is no ESI coverage for any employee.

Employee Benefits and Responsibilities Under the Shops and Establishment Act

In the event of an employee getting into an accident, who is responsible for their expenses, and what are the employee benefits under this act?

In such cases, typically, the employee is paid their salary for the number of days they are unable to attend the office after the accident, regardless of their leave balance. In other words, such an employee is considered present until they can physically resume their duties. However, the coverage of medical expenses depends on the mediclaim policy that the company has for its employees.

Employee Benefits Under the Employees' Compensation Act

Employees are entitled to benefits under the Employees' Compensation Act. According to the provisions of the Act, an accident victim is entitled to 50% of wages, the full cost of treatment, and, if there is any residual permanent disability, due compensation. Please refer to the provisions of the Act.

Normally, companies buy a policy for the Employees' Compensation Act, and if so, it is the responsibility of the insurance company to pay the benefits. Please check if your company has bought any policy and if the name of the concerned employee appears in the list of the policy document.

As a preferred employer of choice by employees, there are some basic expenses that the company needs to consider. One such case would be employees' medical benefits for those who are outside the purview of ESIC. You can recommend mediclaim and GPA policies for such employees.

Any employee meeting with an accident while on duty, even if it occurs outside the company, will be considered as an "accident during the course of employment," and the employer has to take care of his/her medical expenses, unless the employee is under the influence of alcohol.

Regards,
Murali

Understanding Employee Benefits Under the Employees' Compensation Act

Employees are entitled to benefits under the Employees' Compensation Act. According to the provisions of the Act, an accident victim is entitled to 50% of wages, full cost of treatment, and, if there is any residual permanent disability, due compensation. Please refer to the provisions of the Act.

Normally, companies buy a policy for the EC Act, and if so, it is the responsibility of the insurance company to pay the benefits. Please check if your company has bought any policy and if the name of the concerned employee appears in the list of the policy document.

In case the company's employee strength is less than 15, it does not come under ESIC, and the company also does not have any policy like accident or group insurance. If there is an employee who gets into an accident, is the same suggestion applicable, sir?