Our industry is a service industry where we deploy employees to customer sites or factories to perform mechanical-related jobs on earthmoving equipment. When our deployed employee is covered under ESI (Employee State Insurance) but is sent to a factory located in an area where ESI is not implemented, the factory authorities are requesting Workers' Compensation (WC) policy coverage for that employee to allow him entry into their premises for work. The employee always carries an ESI Pehchan card with him. How can we resolve this issue?
From India, Bangalore
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From India, Bangalore
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In a non-implemented area, if an accident occurs, the employer is liable under the Employee Compensation Act to pay compensation. Therefore, it is suggested to cover employees engaged in non-implemented areas under the Workers' Compensation (WC) / Employee Compensation (EC) policy.
It is not mandatory to cover employees under the policy, but it is mandatory to pay compensation as per the Act. In the absence of a policy, the employer has to pay from his own pocket.
Thanks and regards.
Keshav Korgaonkar
[Email Removed For Privacy Reasons], Insurance Advisors, Corporate Advisors, Legal Advice, Wage and Salary, Labour Compliance Audit, SSI Registration, NOC from
From India, Mumbai
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It is not mandatory to cover employees under the policy, but it is mandatory to pay compensation as per the Act. In the absence of a policy, the employer has to pay from his own pocket.
Thanks and regards.
Keshav Korgaonkar
[Email Removed For Privacy Reasons], Insurance Advisors, Corporate Advisors, Legal Advice, Wage and Salary, Labour Compliance Audit, SSI Registration, NOC from
From India, Mumbai
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ESI - Construction site workers.pdf
ESI- Construction workers.doc