Navigating ESIC vs. WCA: Which Coverage Applies to Our Office Staff?

Our company is situated in a non-corporate area, and all employees have been covered under the WCA Insurance Policy. However, the registered office of the company is located in the city (corporate) area. The question at hand is: under which act do the office staff workers fall, the ESIC Act or WCA?

Irrespective of the area, all employees must be covered under either the ESIC Act or the WC Act (now the Employees' Compensation Act). The ESIC Act is applicable only in notified areas where local offices and hospitals are available as per the Act. Where the ESIC Act does not apply, the WC Act will be applicable without a doubt. Therefore, if either of the compensation acts is applicable, you need to cover your employees according to the Act.

Coverage of Employees Under ESI and WCA

The employees of your company shall not be covered under ESI if the area is situated outside the ESI notified area. ESI is different from the WCA Insurance Policy, so comparison is irrelevant. The Workers' Compensation policy is applicable to all establishments.

Applicability of ESI

ESI is applicable to employees of the registered office if the area declared under ESI includes a city or village.