Health Insurance for Employees Earning Above Rs. 21,000: What Are Employers' Obligations?

Health Insurance for Employees Earning Above Rs. 21,000

For employees/workmen working in an ESI-implemented area and drawing more than Rs. 21,000 (not the case of those drawing less than Rs. 21,000 and now crossing the wage ceiling), is it compulsory for the employer to ensure the employees/workmen by taking a medical/health insurance policy/scheme, etc.? They can also fall sick, right? How should their health/medical benefits be managed? Is there any statute that imposes statutory liability on employers in such cases, i.e., employees/workmen drawing more than Rs. 21,000?

Companies can take insurance cover for employees earning more than Rs21,000 per month. ESIC coverage only applies to employees earning less than Rs21,000 per month.

So, are you saying that there is no statute which puts liability on the employer to take insurance cover for employees drawing more than Rs. 21,000/-? I am looking for an answer from a statutory angle.

Thank you, Nathrao. However, EC will not provide medical benefits like ESIC does. Taking a cue from your input, I am thinking that the best way would be to take an EC Insurance Policy with an add-on insurance feature that will cover medical benefits.

Others are requested to pour in your suggestions, please.

Regards, I.S.

Hi Ningthoujam,

Employee State Insurance (ESI) is applicable only for employees whose monthly compensation is less than 21,000 rupees. Employees whose monthly compensation is more than 21,000 rupees will be covered under the organization's health insurance policy.

Regards,
Sairam Bandi
Email - sai@kredily.com