ESIC Exemption and Process - how to go about getting the exemption?

Shubhraj
Hello All,

I have a question around ESIC. The employer has already covered all the employees under a private health insurance scheme, as per the clause 14 of ESIC act which states the below :
The exemption is permissible from operation of provisions of the Act subject to the condition that the employees in a covered factory or establishment are other-wise in receipt of benefits substantially similar or superior to those provided under the ESI Act.

The appropriate Government may grant exemption to such factory or establishment for a period of one year at a time prospectively in consultation with ESI Corporation. An exempted application unit has to apply for renewal three months before the date of expiry of the prior exemption.

Kindly advise on how to go about getting the exemption from ESIC
vmlakshminarayanan
Hi

Mere coverage of employees under group Mediclaim insurance cannot be a substitute for ESI. You cannot apply for exemption showing this as a substitute for ESI.

Employer needs to prove that the Establishment is providing better medical benefits like inhouse round the clock hospital facility or tie up with hospital with all medical facility. According to the ESI Act 1948, the appropriate govt may deem to impose exempting employer, seeking exemption under ESI Act has to prove that medical facilities and other benefits exempted to the employees are better than those of the ESI hospitals.
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