If Construction Site Is Covered Under ESI Act, Is It Necessary To Take Workmen's Compensation Policy?

Dear Sir/Madam,

I need clarification. Our construction site is covered under the ESI Act, and we have also taken a Workmen's Compensation policy. However, is it necessary to have this policy?

Kindly help me sort out this issue.

Thank you.

The Workmen's Compensation Act is a compulsory enactment. This means that if an employee is covered under Scheduled Employment, this act applies. The ESI and EC Acts serve different purposes. Therefore, in any case, the Workmen's Compensation Act will apply. Please refer to the website below for a more detailed differentiation.

If you go through the Employee Compensation Act (earlier it was called the Workman Compensation Act), it is very clearly stated that this does not apply to any employee covered by the ESIC Act and schemes. Therefore, it would not be necessary to cover workers under ESIC in the workman compensation insurance plan. Any compensation due to them for accidents will be taken care of by ESIC.

However, employees with a salary of more than ₹15,000 per month are not covered under ESIC. Therefore, you should have a WC insurance policy to take care of those employees.

Labour law index, please do not mislead people.

The Workmen's Compensation Act does not apply to any employee covered under ESIC.

Section 53 of ESI Act reproduced below which bars claim by an IP or his dependents from any other source than ESIC
[53.Bar against receiving or recovery of compensation or damages under any other law.
—
An insured person or his dependants shall not be entitled to receive or recover, whether from
the employer of the insured person or from any other person, any compensation or damages under the Workmen’s Compensation Act, 1923* (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.]
V K Gupta

Agreed with Saswata Banerjee in the matter. In support of the same, I am enclosing the circular. I hope this will clear all doubts.

Thanks & Regards,

From,
Sumit Kumar Saxena

Dear All,

Greetings...

Please read the thread at https://www.citehr.com/575067-workme...red-under.html where the issue is discussed in detail.

Regards,