Navigating Employee Compensation: Should We Cover All or Just Semiskilled Workers?

Employee Compensation Policy Queries

My organization is in the healthcare industry, based out of Chennai metro. We have around 110 employees working in different categories (Skilled Resources: Administration, Sales, Client Relations, HR, Doctors, Staff Nurse, Pharmacist & Lab Technician). We have taken medical insurance (GMC & GPA) for all our employees except for those covered by ESI (only GPA taken). Recently, we have hired semiskilled category employees (such as electricians, painters, plumbers & A/C mechanics, etc.). Most of them are covered under ESI, except for 2 employees.

My queries are as follows:

1. Should we have an employee compensation policy? Is it mandatory?
2. If yes, should we cover all category employees or only semiskilled employees?
3. Should we include ESI-covered employees as well?

An immediate reply would be highly appreciated.

Thanks & Regards

In the absence of the non-application of the Employees' State Insurance Act, 1948, either to the establishment or to the employees concerned, taking out an insurance policy for the risks arising from employment accidents regarding his employees by the employer is not mandatory but advisable. Particularly, after the recent amendments made to the Employees' Compensation Act, 1923, the amount of compensation payable under the Act has significantly increased, including the statutory liability to reimburse the entire medical expenses. Therefore, it is better to obtain an appropriate insurance policy in this regard for all employees not covered by the ESI Act, 1948 but falling under the definition of the term "employee" under section 2(1)(dd) of the EC Act, 1923, in conjunction with its Schedule II.