If the employee is not covered under ESIC, then those employees will be cover under Employee Compensation Act ( EC Act). There are insurance available in lieu of EC Act. This is unnamed insurance and statutory need. Therefore, the premium for insurance must be borne by the PE otherwise it will be illegal.
Now come to Mediclaim (hospitalization) & GPA ( Group personal accident insurance ) where both are extra legal. There are organizations where employees/union(s) are interested to cover parents for mediclaim by paying the portion of premium paid by the employees. Usually premium for extra legal items are paid by the PE.
If there is consent by the employees / union(s) agreement , then it may be possible to deduct from salary for paying premium. I have never came across with any organization where employees are bearing the cost of entire premium for extra legal matters and employer is not paying anything. India has huge diversity and I am also learning every day new things when I am very close to 70 years.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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