Is it mandatory for the company to take an insurance policy for staff who are not eligible under ESIC?

Is it mandatory for the company to take an insurance policy for staff who are not eligible under ESIC?

It is not at all mandatory but a medical insurance is a perquisite which many of the employers are having to partly take care of the medical needs of all employees not covered by ESI Act 1948.

In our Company , three persons only got 21,000/- below salary. Kindly advise they can eligible to ESI coverage.
Jegadesh.S

@Jagadesh
Every employee is counted to be workmen under ESIC act, (where total number of employees are 10+) however the employees drawing average wages 21000+ are just excluded, balance are covered under ESIC

Dear Timmu,

The lofty purpose behind the statutory requirement of insurance under the ESI Act,1948 is to provide for certain benefits to employees in case of sickness, maternity and employment injury so that the employer stands relieved of his liability in this regard. By virtue of the salary limit, if some employees escape the coverage of the ESI Act,1948, the liability of the employer to compensate such employees in respect of death or injuries due to any employment accident or contracting of any occupational disease remains still at large under the Employees Compensation Act,1923. Though, it is not mandatory under the EC Act,1923, it is always safe to take employees compensation insurance policy in respect of those employees not covered by the ESIAct,1948 but falling under the definition of employee u/s 2(dd) of the ECA,1923.

It is not mandatory for the company to take an insurance policy for staff who are not eligible under esic, but it is advisable to avail a medical insurance policies for staff, who are out of ESI.
If your company is giving the facility of medical reimbursement for their domiciliary treatment to such staff, the limit of coverage under medical insurance can be decided by the management.