Is ESIC Coverage Mandatory for Construction Workers Under Minimum Wage? Seeking Expert Advice

Insurance Coverage for Construction Workers

We have outsourced our construction to a vendor, and he has deputed his workers at our construction site. He says he has covered their insurance through an insurance policy under the Workmen Compensation Act. But is it not mandatory for him to cover his workers through ESIC if they fall below minimum wages?

Please help me with your expert inputs to explain.

ESI and EC Act Applicability

ESI applies only in notified areas under the ESI Act, 1948. If your construction site falls within the notified area, then the contract workers falling within the definition of the term 'employee' should be covered under the ESIA.

The EC Act, 1923 would apply to those falling within the definition of the term 'employee' under section 2(dd) read with the list enumerated under Schedule II of the Act. Check these facts and decide accordingly.

Thank you for your input. Could you please guide me on how to determine if the site located in Sricity, Andhra Pradesh, is a notified area that falls under the purview of the ESI Act, 1948?

Thank you.