Inside Factory Premises Which Is Better Insurance Policy For Drivers : WC Policy Or Vehicle InsurancePolicy?

Dear Seniors,
I have a small doubt, if any contractor working under any Factory and hired some workers including drivers for transport purpose inside the Factory premises. Since, WC policy is compulsory for all the workers working under contractor, inside the Factory premises. But some contractors are having only WC policy only to the workers except driver category. They are requesting to Factory management to allow their drivers (with vehicle) without WC policy because they all are covered under vehicle insurance policy.
Is it correct not to take separate WC policy for the drivers? Is driver generally covered under vehicle insurance policy? Is the vehicle insurance policy is better than WC policy? If we allow the drivers by considering their risk coverage under vehicle insurance policy, it would be correct as per statutory norms?
Pl suggest.

no. you need to take WC Policy for drivers working inside the factory. Vehicle insurance policy become operational only on roads and other places when any untoward incident happens to vehicle or driver but not in the factory premises. Inside the factory premises, only factory inspectorate has got authority for any accident happens they may investigate and book the occupier for unsafe activity. In case of vehicle insurance policy, you need FIR to register a claim with insurance company which is not possible for accident happens inside the premises of a factory. Hence we would suggest you to cover drivers under WC policy.

Dear Z_sachinkhare,

Let me first tell you that in India no insurance is compulsory except vehicle insurance.

When there is an employer-employee relationship and the employment is in factory, mine, plantation,transport establishment, construction, railway, ship, circus and in other hazardous occupations and employments specified in Schedule II of EC Act and the employee is not coverable by ESI Act, the EC (erstwhile WC) Act is applicable to such employee.

As per EC Act, employer is liable to workmen and / or his/ her dependents certain relief or compensation in case of accident to the employee arising out of and in the course of employment and causing either death or disablement- partial or total.

There is no criteria of employment in side the factory premises or out side the factory premises.

Your liability under the EC Act is absorbed by Insurance Company if you cover your employees under EC Policy.

Vehicle Insurance generally covers accidental loss or damage to the vehicle and third party.

Hope you will get answers from my inputs correctly.

Dear Member
As mentioned by Keshav jee ,drivers should be covered under ESIC and if ESIC is not applicable in that area than they should be covered under employee compensation act.

Dear Z_sachinkhare,
As you have mentioned in your query that you have been hiring some workers including drivers for transport purpose inside the factory premises. The provisions of the ESI Act has been extended to the companies, which are engaged in the "Road motor transport" business, it is thus always advisable to hire those workers from reputed transport company.The advantage of such a step is that all the liabilies relating the the payment of conpensation is met by the ESI Corporation. In this regards, Section 53 of ESI Act,1948 is relevant which puts a bar against receiving or recovering compensation or damages under any other law.
BS Kalsi

Check if ESI is already applicable there. If your organization is notified and you are complying ESI provisions then WC is not required as ESO benefits are mandatory and better than WC.
Regds,
RDS Tadav