Curious About ESIC Zones? Let's Explore How They Affect Coverage and Classification

Understanding Zones and Their Impact on ESIC

Please brief me about the following:

- What are zones 1, 2, and 3?
- What is the basis to classify them (criteria)?
- Does the applicability of ESIC to a particular area depend on these zones, and how?
- What is the exact difference between ESIC and WC policy?

I hope you will help me out.

Thanks & Regards,
Mahesh

I think you are talking about zones with reference to the Minimum Wages Act. Zones are not concerned with ESI coverage. ESI publishes its coverage area separately. Areas where ESI will not be applicable will be covered under the WC Act (now renamed as EC Act).

I agree with Prashant; you should also visit the ESIC State and national portal for further details.

ESIC: Chinta se Mukti

Thanks

Thank you for the information. However, please provide me with information about the criteria for zones. Another question I have is on what basis ESIC decides that a particular area will be covered under ESIC.

In a gram panchayat area, one company is covered under ESIC while another is not. What is the reason behind this difference?

Please provide the necessary information.

Thank you.

ESIC extends its coverage based on the minimum number of IPs in that area. Once the scheme is extended to an area, no exemptions are granted to any company if it falls under the definition of an establishment as defined in the ESIC Act.

I would like to add to the views of Mr. Prashant B Ingawale (with due regard) on the following point:

"The area where ESI will not be applicable will be covered under the WC Act (now renamed as EC Act)."

The W.C. Act is applicable to the area where ESIC is also applicable; but under Section 53 of The ESI Act, there is a specific bar that an Insured Person (under ESIC) cannot claim benefits under the W.C. Act. Any other person who is not insured but working in an ESIC-covered area can claim benefits under the W.C. Act.

Thanks,
V K Gupta

Thank you for the information. Could you please explain how ESIC determines which particular areas are covered under the ESIC Act?

Thanks

Dear Mahesh, As already pointed out, ESIC authorities cover the area through their notification. So, you can check your area at the Local Office of ESIC. If your location is covered, then you can apply for registration and proceed accordingly.

In general, I must tell you that if your establishment is old in the covered area, the ESI authorities must have visited you to provide coverage. Sometimes, an area may not be covered initially but could be added later by the authorities, and the Act would be implemented, even if it was not earlier.

Therefore, to be certain, please visit the ESI office in your area.

I hope the matter is clear.

Thanks,
V K Gupta

Dear Mahesh, Please inform me about the coverage of your area after conducting the necessary enquiry as suggested. Also, note that the coverage of employees under ESIC is beneficial because it not only provides medical aid to the family but also insurance to the IP for employment injury.

For example, if there is a driver who unfortunately experiences an employment injury, then his family will be able to access insurance benefits as well as medical treatment, regardless of the cost.

Thank you.

Regards,
V K Gupta