IF A EMPLOYEE IS COVERED UNDER WORKMEN COMPENSATION ACT
1923 THEN ESI IS APPLICABLE ON HIM OR NOT?
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Answer Posted / navin kapoor
I feel NO.Because there is no limitation of area of operation and applicability if employer take WC policy from any insurance company whereas in ESI you have two type of limitations...Firstly there are fewer hospitals of ESI not covering all the area where various establishments/factories are situated. Secondly there is a upper limit on employee rather worker's wages for becoming a ESI contributor and beneficiary.(It is 10000/-or 15000/- Rupees P.M.).
In certain cases like a contractor who do not have any premises and work at other establishment/factory premises should take WC policy of his own and as an alternate can use Principal employer's ESI sub code to cover contractor's workmen.
Fact of the matter is that there are numerous acts for single purposes and it is total chaos created by the bureaucrat/politicians.
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