Navigating ESIC Rules: Can Distance Justify Choosing Workmen Compensation Over ESIC?

I have a private security agency. I have been given a contract for security guards in an oil company in Usar, near Alibag, Raigad, Maharashtra. The plant is located about 15 km from Alibag, which is the district headquarters. Maharashtra has made ESIC applicable in the said district. However, the closest facility available is at Alibag, 15 km from the plant if we include the government hospital. If not, the ESIC hospital is about 100 km away at Panvel. Is there a provision based on the distance from the closest ESIC facility that permits us to opt for Workmen Compensation Policy instead of ESIC?

Exemption under the ESI Act vs. Workmen's Compensation Act

The Employees' State Insurance (ESI) Act of 1948 provides for the exemption of an establishment as per Section 87, granted that the employees receive benefits substantially similar or superior to those provided under the Act. On the other hand, the Workmen's Compensation (WC/EC) Act of 1923 only covers the compensation aspect and does not include other benefits such as sickness benefits or medical facilities. Therefore, the reasons stated are inadequate for the government to grant an exemption.

It raises the question of whether the exemption is for the Oil Company or other contractor agencies. If the latter is the case, a similar scenario may be applicable.