ESIC V/s GMC

Hi,
This doubt came to me some time back and I thought of voicing it out here to get some feedback on the same!!
If an organisation covers all employees under a GMC (Group Medical Scheme) and a GPA (Group Personal Accident Scheme) is the organisation liable to also pay the ESIC amount?
The reason I ask this is that employees gets a better coverage through the organisation including free hospitalisation for him/her and their family member/s at good private hospitals (not that I mean that the ESIC hospitals are bad!). But if the individual is getting a better health treatment through the GMC and GPA then does it make sense to also put them under ESIC??
Looking forward to your replies and feedback..
Thanks,
Chanchal

Hi Chanchal,
Pl do not confuse with ESIC and GMI / GPAI ( Group Mediclaim Insurance / Group Personal Accident Insurance).
GMI / GPAI is the additional benefit which company is providing to their employees where as ESIC is Statutory complaince.
If the Gross salary of an employee is less than or equal to RS 10000/- monthly, he is covered under ESIC.
Generally the Company is taking the GMI / GPAI to protect their employees ( who are not covered under ESIC) and give extra benefits to the employees.
Hope I have clarified your query to some extent.
AMATYA

There is no exemption for ESIC They need to be covered under ESI if their wages are less than Rs 10000/
Siva

If you prove that the company is providing facilities and benefits superior to that provided by the ESIC, you can get exemption from the operation of ESI Act as provided in provisio to subection 4 of section 1 of the ESI Act.
Normally, the leave benefits provided by the ESIC is much higher that a management can offer under normal circumstances. There are organisations giving importance to those who are placed in managerial and highly skilled positions, but they seldom give any benefits to those who are working in the shop floors !!!!! But ESIC cares for those who are paid less than 10K.
Can you assume the compensation payable to a workman in case of an empoyment injury? If covered by ESI, it becomes the responsibility of ESIC to pay compensation and not the management.
Regards,
Madhu.T.K

T.K Madhu
You are right But is difficult to get exemtion as it is difficult to prove that benefits are more.
If I am right, TISCO was one company where they got exemption.
On two account it is dificult to prove
1. Medical benefits There is no age limit in ESI so dependants keep getting this benefit whereas in general isurance there is limitaation on age
2. Compensation on death Some pension is payable in ESI wheras in workmens compensation act there is no such provision
Siva

Dear Mr. Siva,
As you said, in normal circumstance, one cannot avail exemption from ESI and EPF. Certainly, there are companies getting exemption from EPF, like Mathrubhumi Printing & Publishing Company, Bhagirata Engg, etc, but it is very rare to find companies exempted by ESI. And iI personally feel that as far as workmen (for whose benefit it is set up) are concerned, the ESI will be a getter option than any other schemes because a leave taken under ESI will be counted as day of work FOR THE PURPOSE OF CONTINUOUS SERVICE under the Industrial Disputes Act, Maternity Benefit Act, Gratuity Act and Factories Act (for determination of annual leave earned) and for deciding eligibility for bonus under the Payment of Bonus Act.
Regards,
Madhu.T.K

Hi chanchal,
Your view is really correct but there is no exemption for ESIC even though you cover the employees under GMA/GPA, till the salary limit of 10 thousand. the employees drawing above ten thousand will be out of ESIC scheme.