Understanding Workmen's Compensation Rates When ESI Isn't Available Nearby

Hi,

We have deployed our employees to a location where the ESI facility is not available within a 60 km radius. If the ESI facility is unavailable, then it falls under Workmen's Compensation.

I would like to inquire about the rate of Workmen's Compensation (claim & payable) so that we can proceed with the claim.

Regards,
Ranjeet

Dear Ranjeet,

It doesn't matter if the ESIC facilities are available nearby to your organization or not. W.C. would be applicable only when ESIC is not applicable in your area.

Regards,
Jitender

The applicability of ESI to an establishment in a particular area and the availability of ESI facilities in an area are two different subjects. There are certain notified areas where the companies set up will be exempted from the operation of the ESI Act. Just on the basis of not having an ESI dispensary in the area where the company is set up, the company is not exempted from the ESI Act. Therefore, please ensure whether the area is notified as uncovered, and if uncovered, then only for Workmen Compensation.

In effect, the compensation payable under the Workmen's Compensation Act is to be met by the employer alone. There are different amounts specified in the Act as compensation. In order to avoid a lump sum burden, the employers can take different policies which are available nowadays with insurance companies.

Regards,
Madhu.T.K