Can We Rely on Workmen Compensation Alone Without ESI for Our Construction Sites?

Hi, I am working for a company in the construction business. We have different sites all over India. I would like to know the following:

ESI and Workmen Compensation Policy Query

We have not taken ESI even though we are under the ESI purview up to now. Can we take the workmen compensation policy alone? Does the ESI Act allow you to do so? If so, do we have to take the policy for all the employees or only for those employees whose gross salary is equal to or less than ₹15,000?

If W.C is not applicable, then what do we have to do? Please let me know.

Regards,

Though you are covered by ESI or not, you can take the GPA policy, which is optional. In the absence of it, you have to pay from your pocket for employment injury.

Regards,
Varghese Mathew

Though you are covered by ESI or not, you can take the GPA policy, which is optional. In the absence of it, you have to pay from your pocket for employment injury.

Regards

Hi Mr. Varghese Mathew, Thanks for your reply. As you mentioned that GPA is optional, we will be taking it. However, my main concern now is if an ESI inspector conducts an inspection in our organization, can we avoid any damages or penalties by showing the GPA policy? Request you to clarify this matter.

Thanking You,

M. Raja Sekhar

GPA and ESI Exemption Clarification

Only because of GPA, you will not be exempted from ESI. Usually, GPA is taken to cover accidents for those who are not receiving ESI benefits, either because their salary is above Rs 15,000 per month or the area is unimplemented. Actually, there is no law making GPA mandatory.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Normally, the ESI authorities do not insist that construction companies be covered under the ESI Act, 1948, due to the peculiarities of their working conditions and the fact that they fall into the category of unorganized labor. However, construction agencies employing ten or more persons in their offices, situated in implemented areas, are required to be covered under the Scheme, except for persons earning a salary exceeding Rs. 15,000 per month. It should be noted that the criterion of 10 or more persons applies only to employees who are eligible for coverage under Section 2(9) of the ESI Act. Employers are advised to obtain workmen compensation insurance policies for employees not covered under the ESI scheme to address accidents that may occur during their employment.

Clarification on Workmen's Compensation Act

Regarding your second query, it is clarified that the Workmen's Compensation Act (now known as the Employees' Compensation Act) is applicable to construction employment as specified in Schedule II under the EC Act.

Regards,
BS Kalsi
Member since Aug 2011.

ESIC Coverage for Construction Workers

Vide their circular No. 4/99 dated 14.6.99, ESIC stated that construction workers at the site can be exempted from coverage. However, by circular dated 3.1.11, ESIC revisited its earlier circular and said that such workers can be covered with the implementation of 'IT roll out anytime, anywhere'. It has directed the RDs to conduct a survey on coverage and submit a report. This week, the Union Minister of State for Labour, Mr. K. Suresh, declared in Kerala that construction workers will be covered under ESI.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]