WORKMEN COMPENSATION ACT - Employee Compensation Act

Hi, We have deployed our employees at a location where ESI facility is not available at the surrounding area of 60 kms. If the ESI facility is not available then it falls under Workmen Compensation. I want to know that what is the rate of workmen compensation (claim & payable)? So that we can claim the same. Regards, ranjeet

Dear Ranjeet, It does't matter the ESIC facilities is available nearby to your organisation or not. W.C. would be applicale only when ESIC is not applicable in your area. Rgds/Jitender

The applicability of ESI to an establishment in a particular area and 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 ESI dispensary in the area where the company is set up, the company is not exempted from 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 lumpsum burden the employers can take different policies which are available now a days with insurance companies. Regards, Madhu.T.K