ESI/Insurance - which would be more beneficial to our employees?

Hi,

Our company's starting stages are ongoing. We have 30 to 40 employees, and we are considering whether to opt for (ESI) or insurance from private companies. Please advise on which option would be more beneficial for our employees.

Thank you.

Ebin Antony
Administrative Assistant

Sir, since coverage under the ESI Act, 1948 is compulsory (if the area where the factory/unit is located is an implemented area), I fail to understand how you can offer options for coverage or non-coverage under the said Act. There are no exemptions, waiting periods, or qualifying periods for so-called factories in their initial stages. Once the unit, whether a factory or a notified type of establishment, has started (including on a trial basis) and employs a minimum number of persons, such as 10 in the case of Tamil Nadu, it is covered under the said Act. If there are any doubts, I hope you will approach the concerned department on the subject.

Thank you, Harsh.

I will check whether our area is in the implemented area. Also, I think that implementing ESI is better because it may become compulsory in other ways.

Ebin.

Dear Ebin,

What is the gross salary of the employee per month? If it is more than Rs. 21,000, then you have to opt for Group Medical Insurance policy/workmen compensation policy; otherwise, ESI.

Regards,
Pranab Chakraborty

Dear Pranab,

Thank you for the response. We have employees with a salary of INR 21,000 per month. We have decided to implement Employee State Insurance (ESI) for them.

Hi Sir,

I want to know, we have WMC as well as ESIC policies. Now, one of our employees had an accident and passed away on the spot. Which policy should we follow, and which policy provides the relevant benefits to his family?

Kindly help me out.