Struggling with ESI Coverage for SEZ Manufacturers: How Can We Ensure Employee Benefits?

Hi Seniors, this is Rama. Here, I am posting an issue for which I have not received an answer from the concerned individuals. Can anyone help me with this?

Issue with ESI Coverage for SEZ Manufacturers

We are manufacturers under SEZ and started the company in 2011. However, our area is still not covered under ESI. I have heard that if ESI coverage is not available, we can utilize the nearest location to us to obtain coverage. Although we are providing GPA to our employees, medical coverage is not applicable.

Could someone please provide a solution and outline the correct process to follow?

Regards, Ramadevi.

Dear Rama, there are many parts of the country not covered by ESI. In such places, the option is to go for mediclaim, group personal accident, or WC. You may approach any of the Government Insurance companies for the schemes. However, as and when ESI coverage is introduced, it is mandatory to switch to ESI.

Seeking Clarification from the Regional Director

Please write a letter to the Regional Director seeking clarification. In case, on a later date, when an inspector or SSO of ESIC comes, you can be comfortable. Taking a policy to protect the employer from the WC Act for the present is sufficient.

Regards.

Please read the last word as SUFFICIENT. Furthermore, please add in the letter a request to inform your company whenever ESIC notifies the area as covered.

Seeking Advice on Group Medical Insurance Alternatives

Thank you all for your prompt responses. Yes, we have implemented a GPA for all our employees. However, it is important to note that this policy does not include coverage for medical claims; it only provides personal accident benefits.

I am seeking your advice on alternative options as the company is reluctant to offer Group medical insurance due to its perceived high cost. Kindly suggest the best course of action in this regard.

Regards,
Ramadevi.

Understanding the Applicability of ESI and WC Acts

If the ESI Act is not applicable, the WC Act becomes applicable. Hence, you need to obtain ONLY a WC policy. No other policy can cover liabilities, if any, arising out of employment injury. The WC policy can be discussed with any general insurance agent. I am advising you on this because you are sure that your establishment is in an 'uncovered' area of ESI. If you want to cover employees under mediclaim, that is a separate benefit that you may extend.

Your head office or branch is in a covered area. Use that code to provide ESI coverage to employees.

Thank you.