ESI Coverage Confusion: Do We Still Need to Pay ESI if We Have a WC Policy?

If any area before the amendment in ESI was not covered under ESI, then are we liable to pay ESI even if we have made WC policy for the same?

ESI Act becomes applicable only upon notification of the area in which the establishment operates as a covered area. Consequently, the contribution is payable only thereafter. So, for the period before this notification, the EC Act 1923 applies, and during that period, ESI Act compliance is not required.

Please provide additional information regarding whether such a notice for ESI contribution has been received and when the notification was issued.

1. Sir, your remarks "If any area before the amendment in ESI was not covered under ESI" appear to be vague and not clear. I hope you will provide full details and clarify the nature of the so-called amendment so that seniors may be able to understand the point correctly.

2. The extension of the ESI Act to any new area is done through a notification issued under section 1(3) of the said Act and not by means of any amendment in the Act.

Is your query as follows? "If an ESI non-implemented area gets covered under the act subsequently, what should we do about the Employee Compensation policy."

If the above is true, then the only option you have is not to renew the policy as your employees are now covered under ESI. It is either ESI or the policy, though the policy is not a statutory requirement. However, it covers contingent liability that may arise out of employment injury.