Navigating ESIC vs. Group Mediclaim: What Future Legal Hurdles Could Arise?

Hi All,

I am working in a new establishment in the HR Department, and we want to insure our employees with either ESIC or a Group Mediclaim Policy. I am confused about ESIC; if I do not contribute towards the ESIC for employees with a salary below 22000 and opt for a Group Mediclaim policy for all employees, what statutory problems might I face in the future? I request assistance in finalizing the best approach.

Greetings,
Susant Jena

If you want to remain within legal requirements and not go overboard, then cover employees under ESI. Those whose salary is above ESI limits can be covered under an Employee Compensation Policy from any general insurance company. By doing this, you legally secure your company from any legal liabilities that may arise. A Mediclaim policy does not suffice legal obligations and as such, may be done away with.

Dear Susant,

Each employee working in a factory or establishment has to be covered either through ESIC, Employee Compensation, or Workmen Compensation Policy. If something wrong happens, HR would be questioned by the Management only, so cover all of them.