Hello Seniors,
Can anybody help regarding the Workmen's Compensation Act? We are a manufacturing company, and I would like to know the following:
We have covered our laborers under the ESI Act, and those who could be covered under this act are covered under the Group Mediclaim policy. Do we still need to cover these laborers under the Workmen's Compensation Act? If yes, how do I go about it? Where is the Workmen's Compensation office located in Mumbai? We are situated in South Mumbai.
We have branches in Daman & Jammu; do we need to cover these branches? If yes, how do I proceed since they are not in Maharashtra state?
Thank you,
Joanita
From India, Mumbai
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Can anybody help regarding the Workmen's Compensation Act? We are a manufacturing company, and I would like to know the following:
We have covered our laborers under the ESI Act, and those who could be covered under this act are covered under the Group Mediclaim policy. Do we still need to cover these laborers under the Workmen's Compensation Act? If yes, how do I go about it? Where is the Workmen's Compensation office located in Mumbai? We are situated in South Mumbai.
We have branches in Daman & Jammu; do we need to cover these branches? If yes, how do I proceed since they are not in Maharashtra state?
Thank you,
Joanita
From India, Mumbai
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Hi,
For your kind information, if your industry is covered under the E.S.I. Act, you need not worry about the W.C. Act as it is not applicable to industries with ESI coverage. Furthermore, there is no W.C. Office. The appellate authority under the W.C. Act is the Deputy Labour Commissioner of the area where your industry is located.
Regarding other units, you can register your industry under ESI in the respective area/state. If the revenue area is not covered under E.S.I., then W.C. will be applicable. In such cases, you can opt for insurance coverage for your employees offered by GIC to mitigate the financial burden in case of eventualities.
R.K.P.
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For your kind information, if your industry is covered under the E.S.I. Act, you need not worry about the W.C. Act as it is not applicable to industries with ESI coverage. Furthermore, there is no W.C. Office. The appellate authority under the W.C. Act is the Deputy Labour Commissioner of the area where your industry is located.
Regarding other units, you can register your industry under ESI in the respective area/state. If the revenue area is not covered under E.S.I., then W.C. will be applicable. In such cases, you can opt for insurance coverage for your employees offered by GIC to mitigate the financial burden in case of eventualities.
R.K.P.
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One of the benefits that accrue to an employer due to the applicability of the ESI Act, 1948, is that the employer is absolved of its responsibility under the Workmen's Compensation Act, 1923, and the Maternity Benefits Act, 1961. The ESI Act, 1948, is applicable all over India, including the state of Jammu and Kashmir. Since you are covered under the ESI Act and have registered yourself under the said act, you can make the employees posted in Jammu and Daman members of the ESI. For this, you have to get a sub-code allotted from the regional office of the concerned area. Thus, you need not register or inform of an accident under the Workmen's Compensation Act, 1923, to the commissioner.
As for the other employees who are not covered under the ESI, you can go for a suitable policy from the GIC.
From India, Chandigarh
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4As for the other employees who are not covered under the ESI, you can go for a suitable policy from the GIC.
From India, Chandigarh
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Although the ESI Act has coverage all over India, the revenue area of coverage is notified and covered. The act may have coverage in a municipal area, but it may not extend to a revenue village or block. If this is the case, you cannot register your industry under the ESI Act if the respective area does not have notified coverage.
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Understanding the Workmen's Compensation Act and ESI Act
The Workmen's Compensation Act was enacted in 1923, a decade before the ESI Act was enacted in 1946 and implemented from 1950. The earlier act placed the onus entirely on the employer in case of an accident, but the later act was more modern and based on insurance principles, placing the onus on an independent agency under government control, thus removing all liability for the employer who pays a small contribution. The ESI Act also included various other benefits, such as medical care for oneself and family members, cash compensation in case of normal sickness, maternity, funeral expenses, and more in addition to injuries and death. Below is a clarification provided in response to a specific question raised by an individual.
The moment your factory or establishment is covered under the ESI Act, there is no liability whatsoever under the Workmen's Compensation Act for those earning 15,000K or below, even if you have failed to register or pay contributions for such employees covered under the ESI Act. Therefore, if you have included such employees in an insurance contract with insurance companies to meet Workmen's Compensation claims, it is simply a waste of the premium paid. It would be better to remove such employees from the insurance contract and limit private or contractual insurance only for those not covered under the ESI Act.
Clarification on ESI Act Coverage
If a person is covered or coverable under the ESI Act (whether actually registered or not), such person or his dependents are barred from claiming benefits under any other act, including the Workmen's Compensation Act, and they can only receive benefits from the ESI Act. Section 53 of the ESI Act specifically bars claims under the Workmen's Compensation Act.
"53. Bar against receiving or recovery of compensation or damages under any other law - An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act."
"61. Bar of benefits under other enactments - When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment."
In the instant case mentioned by you, the deceased met with an accident outside the factory. If he was traveling on official work, then he is on duty and will receive ESI benefits. Check the FIR and other records to determine whether he was on duty travel. The company may have paid for the duty travel, and the mahzar may show documents to support this.
If he was commuting from his residence to the workplace in the normal route and time or returning home without deviation, it is also considered an "employment injury" by virtue of an amendment in 2006. Death pension is available in such cases after this amendment.
There have been several judgments from the Supreme Court and High Courts on this issue, stating that Workmen's Compensation is barred, and only ESI compensation can be claimed from the ESI Corporation. The ESIC itself has accepted this and filed affidavits accepting such claims. Please refer to:
1. Bharagath Engineering vs. R.Ranganayaki and another reported in (2003) 2 SCC 138.
2. HALLMARK INDUSTRIES vs. TAHSILDAR TAMBARAM DEPUTY COMMISSIONER OF LABOUR -1 EMPLOYEES STATE INSURANCE CORPORATION by Madras HC on 8 Jan 2011 in W.P.No.21622 of 2009.
Personally, I feel this provision is very unjust and unfairly benefits insurance companies. Once the insurance premium is paid, there is no reason to give insurance companies an unfair advantage. However, that is the law as it stands now.
Regards,
O. Abdul Hameed
Formerly Additional Commissioner ESIC, New Delhi
From India, Coimbatore
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The Workmen's Compensation Act was enacted in 1923, a decade before the ESI Act was enacted in 1946 and implemented from 1950. The earlier act placed the onus entirely on the employer in case of an accident, but the later act was more modern and based on insurance principles, placing the onus on an independent agency under government control, thus removing all liability for the employer who pays a small contribution. The ESI Act also included various other benefits, such as medical care for oneself and family members, cash compensation in case of normal sickness, maternity, funeral expenses, and more in addition to injuries and death. Below is a clarification provided in response to a specific question raised by an individual.
The moment your factory or establishment is covered under the ESI Act, there is no liability whatsoever under the Workmen's Compensation Act for those earning 15,000K or below, even if you have failed to register or pay contributions for such employees covered under the ESI Act. Therefore, if you have included such employees in an insurance contract with insurance companies to meet Workmen's Compensation claims, it is simply a waste of the premium paid. It would be better to remove such employees from the insurance contract and limit private or contractual insurance only for those not covered under the ESI Act.
Clarification on ESI Act Coverage
If a person is covered or coverable under the ESI Act (whether actually registered or not), such person or his dependents are barred from claiming benefits under any other act, including the Workmen's Compensation Act, and they can only receive benefits from the ESI Act. Section 53 of the ESI Act specifically bars claims under the Workmen's Compensation Act.
"53. Bar against receiving or recovery of compensation or damages under any other law - An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act."
"61. Bar of benefits under other enactments - When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment."
In the instant case mentioned by you, the deceased met with an accident outside the factory. If he was traveling on official work, then he is on duty and will receive ESI benefits. Check the FIR and other records to determine whether he was on duty travel. The company may have paid for the duty travel, and the mahzar may show documents to support this.
If he was commuting from his residence to the workplace in the normal route and time or returning home without deviation, it is also considered an "employment injury" by virtue of an amendment in 2006. Death pension is available in such cases after this amendment.
There have been several judgments from the Supreme Court and High Courts on this issue, stating that Workmen's Compensation is barred, and only ESI compensation can be claimed from the ESI Corporation. The ESIC itself has accepted this and filed affidavits accepting such claims. Please refer to:
1. Bharagath Engineering vs. R.Ranganayaki and another reported in (2003) 2 SCC 138.
2. HALLMARK INDUSTRIES vs. TAHSILDAR TAMBARAM DEPUTY COMMISSIONER OF LABOUR -1 EMPLOYEES STATE INSURANCE CORPORATION by Madras HC on 8 Jan 2011 in W.P.No.21622 of 2009.
Personally, I feel this provision is very unjust and unfairly benefits insurance companies. Once the insurance premium is paid, there is no reason to give insurance companies an unfair advantage. However, that is the law as it stands now.
Regards,
O. Abdul Hameed
Formerly Additional Commissioner ESIC, New Delhi
From India, Coimbatore
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If the employee is getting a salary of more than ₹15,000/-, the Workmen's Compensation Act is applicable. If the ESIC Act is already applicable for salaries less than ₹15,000 per month, kindly confirm if the same will be highly obliged.
Regards,
Raj
From India, Delhi
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Regards,
Raj
From India, Delhi
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You are confused between Workman Compensation Insurance coverage and Group Insurance.
W.C. Insurance:
The workmen's compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy the obligations imposed by the worker's compensation statutes. It is compensation payable under a scheme set out in the Workmen's Compensation Act of India, monitored by the Ministry of Labour.
Group Insurance:
It is a benefit given to the employees as a gesture to safeguard the family's future. It is not mandatory.
Regards.
From India, Lucknow
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W.C. Insurance:
The workmen's compensation insurance is the primary method by which an employer can demonstrate the ability to satisfy the obligations imposed by the worker's compensation statutes. It is compensation payable under a scheme set out in the Workmen's Compensation Act of India, monitored by the Ministry of Labour.
Group Insurance:
It is a benefit given to the employees as a gesture to safeguard the family's future. It is not mandatory.
Regards.
From India, Lucknow
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EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf
EMPLOYER COMPENSATION AS PER W.C. ACT.doc