Tragic Accident Raises Urgent Questions on Worker Claims and Safe Transportation Options

Accident and Claims Inquiry

There was an accident on the weekly off yesterday at my unit, in which two of our workers were involved. Unfortunately, one of the workers died on the spot, and the other is in a serious condition. Can anyone suggest what claims can be made through PF and ESIC, and what is the procedure for it?

Transportation and Safety Measures

In light of the accident case, we are on high alert and need to address the transportation of workers coming to our factory. They currently use a rented bus. Should we continue with the rented bus or should we invest in our own company-registered bus? Additionally, we need to ensure the safety of workers who come to the factory using their own personal accommodation. Are there any policies and procedures in place for this?

Thank you.

Transportation and Safety Measures for Employees

There is no hard and fast rule that a company should provide transportation from their end. Workers can come on rental vehicles or public transport. If your organization wants to provide transportation, it can select its mode and do it according to the budgetary sanctions. You may charge a nominal amount from employees or provide free transport after discussing with the higher-ups.

However, nobody in the universe can assure safe journeys always, whether it be public or private transport, because accidents happen due to our fault or the opposite party's fault.

Claims from EPF & ESI for Accidents

In the present context, you need to ensure that the claims from EPF & ESI are released to the deceased as well as the injured. Contact your ESI office immediately for the needful. The EPF office can be approached later on.

Since the accident happened while the workers were going back to their homes, it shall be considered an accident while on duty. All benefits admissible for an employment injury and death during the course of employment will be available to the injured employees and dependents of the deceased employee.

Accident Reporting Process

To facilitate the above process, you will first need to submit an accident report online through your employer portal of ESIC for each employee. Additionally, a printout, along with a sketch of the accident site and the FIR, should be submitted to the local office/branch office of the ESIC.

Benefits for Dependents

The dependents of the deceased will also receive benefits available from EPF under the EDLI scheme. They will also receive PF accumulations and pension benefits as admissible.

Transportation Options for Employees

The decision to have a leased vehicle or own vehicle for the employees is solely a managerial choice. You can either have a contract for service with a cab/transporter with a per kilometer charge or own a vehicle and employ crews to run it for the employees. In the former case, since the payment to the transporter is for their service, the individuals engaged by the transporter will not be your contract workers, and you will not be responsible for their wages and other contributions. However, if you own a vehicle and handle its operation, maintenance, and employ drivers and attendants, then those drivers and attendants will be your employees, and you will have to manage their wages and statutory contributions such as Bonus, ESI, PF, etc. Even if you have hired crew members' services, as a principal employer, you must ensure they are paid on time. Therefore, the first option is generally preferable.

Accident Prevention and Employee Security

Accidents are not inevitable. Having your arrangements does not guarantee accidents will never occur after an incident. Hence, if employee security is the main concern, hiring or owning transportation may not be necessary. These options are suitable when employees come from areas lacking public transport options or with infrequent services. It could also be considered if work hours are fixed. Otherwise, public transportation may suffice.

The claims mentioned above will not waive the rights of the injured employees or the dependents of the deceased to receive compensation available from insurers through a Motor Accident Claim.