Is ESI Coverage Valid for First-Day Accidents if a Contractor Issues the Employment Letter?

If an employment letter is issued to a worker by a contractor, then even if on the first day of employment the worker is injured, ESI benefits will be admissible to that worker.

(Refer to FAQ No. - 37 of ESI)

*In spite of the fact that the worker is not registered with ESI authorities.*

(Registration can be done within 10 days - refer to the circular dated 03.12.2019 of ESI)

Is it correct?

Availability of Benefits from Day One

Not only accident benefits, but medical benefits are also available from day one of employment. If not registered due to lack of documents, the injured individual will still receive the benefits. However, without registration, you cannot upload the accident report in the ESI portal. Therefore, immediately after the accident, register the individual and then upload the accident report.

Registration Timeline

An employee can be registered within 10 days of joining, but this should not be interpreted as a reason to delay.

Registration Requirement for ESI

The registration can be completed in 10 days' time, as per the circular dated 03.12.2019 of ESI. This means the employer must complete the registration within 10 days.

In the absence of registration, the employer must bear the claim in case of any accident. Many PSUs and large industries do not provide entry or an Entry Gate Pass if the employee or workman does not have ESIC registration. Therefore, the employer should complete the necessary registration before joining to avoid an unpleasant future situation.