Employee's Compensation Act, 1923

Hi,
We are having large number of employees in our organisation. Almost all our employees are out of the purview of the ESI Act, 1948. We have covered them under Personal Accidnet Policy with one insurance company. The benefit which is the outcome of this policy are much better than the benefits mentioned in Employee's Compensation Act, 1923. Further our one plant is situated in non implemented area and hence employees of that plant is not covered under ESI Act.
Considering this background, can we apply for an exemption from the provisions of The Employee's Compensation Act, 1923 ?
Request you all concerns to give your inputs on this.
regards
omkar

Dear Omkar,
I would suggest you to go through provisions of Sec.87,88 and 89 of the Act to get your answer.
Besides, if it is a non-implemented zone and staffs are posted there more than 7 months, your staffs are required to file individual application with the IR Branch of Min of Labour under the State Govt. by filling up a form, which needs to collect from there only, after getting it endorsed by the employer.
Regards,

No. There is no such provisions for exemption as the Insurance Policies are restricted to sum assured only where the amount of benefit is fixed whereas under the Employees' Compensation Act, 1923 the benefit is calculated based on the 'Relevant Factor' where Age, loss of earning capacity, etc etc are considred by the EC Commissioner and amount can be anything depending upon the merit of the cases. Though the ceiling for calculation is Rs.8000/- wages per month but whether any equivalent MC or PA Policy would suffice, no such mention is found in law. So EC coverage is a must.