Is Workmen's Compensation Policy Needed for Staff Earning Over Rs 15,000 Without ESI?

In case I am paying a salary to staff more than Rs 15,000 per month, is it compulsory for me to have a workmen's compensation policy for them if ESI is not being deducted?

From your writing, we learn that you need to mention your query on ESI and WC Policy for a staff member who earns more than 15K. You need to understand that for a person who earns more than 15k, they are not covered as an employee under the ESIC Act. Therefore, you need to ensure they are covered under the WC policy; otherwise, your employer is liable for any injury or loss that may occur to this employee.

Is it compulsory to get a WC Policy or optional? I mean, can ESI penalize us at the time of inspection for not doing so?

ESIC Inspector only bothers for employees who are getting a salary less than 15K. Why should he speak for non-covered employees? It is for the benefit of your employer that you are taking this policy. In case of any untoward accident that may happen to non-covered employees at your company premises.

Understanding ESI and EC Acts

Learned member Shri. Jagat Kumar has given the answer to your query correctly. However, I would like to present it in a different way with some additional information to gain further insights on ESI and WC.

Distinction Between ESI and EC Acts

The ESI Act and WC (now renamed EC) Act are two distinct enactments of a special nature. Employees who are not covered under the ESI Act fall under the purview of the EC Act.

If an employee not covered by the ESI Act experiences an accident during employment resulting in total or partial disablement for more than three days, or death, the employer is obligated to provide compensation as per the provisions of the EC Act. If the employer has an EC policy, the responsibility is assumed by the insurance company; otherwise, the employer must pay the compensation from their own funds.

Advisability of Having an EC Policy

While there is no legal requirement to have a policy, it is advisable to do so. Neither the ESI inspector nor the EC Act authority can question why an EC policy has not been obtained. It should also be noted that any policy other than the EC policy will not absolve the employer's liability under the EC Act.

Thank you.