Staff employees are not covered under ESIC. if we take GPA and not WC then is it correct according to law?

Respected to all,

My company is basically an engineering firm, and I work in the HR department. We are looking to provide coverage for our staff employees through either a Workman's Compensation policy or a Group Personal Accident policy. I am uncertain about which option would be the most suitable. Can you please assist me in making this decision?

Our staff employees are currently not covered under ESIC. If we opt for a GPA and not WC, would that be compliant with the law?

Your help in this matter is greatly appreciated as it is very important to us. Thank you.

Dear Sangeeta,

GPA and WC insurance policies are different in scope and scales of insurance offered. While the WC insurance policy covers the entire liability of the employer under the Employees Compensation Act, 1923, the GPA is limited to the sum assured only and subject to the conditions stipulated in the policy note. Moreover, it cannot be a substitute for compensation under the EC Act, 1923, if I remember correctly.