Can Companies Replace ESIC with Private Insurance Like Bajaj Allianz for Employees?

Dear Seniors, can a firm provide a private insurance cover (i.e., Bajaj Allianz) instead of ESIC for its employees?

ESI is mandatory; you cannot avoid it. Although ESI may not be utilized properly by employees, its features are superior to other medical insurance options.

Regards,
Madhan

[QUOTE=Raj Deepti;2128956]Dear Seniors, Can a firm provide a private insurance cover (i.e., Bajaj Allianz) instead of ESIC for its employees?

ESIC Coverage Requirement

Please check your area. If your area is covered under the act, then you must enroll under the act. If you don't, then there is no need for ESIC. You can be covered by a WC policy. Regards, Raj Deepti

In my view, there is no substitute for ESI being a Central Act unless an exemption is granted by the Competent Authority. However, a private insurance scheme can be taken in lieu of the EDLI scheme under the EPF & MP Act 1952, with the permission of the RPFC concerned.

Regards,
AK Chandok
RPFC (Retd.)
www.akchandok.com