Dear all,
I had submitted this article earlier and received two responses; however, they did not satisfy me. Therefore, I am submitting further information along with two replies.
Let's consider a scenario where Mr. X is working in an establishment where the ESIC Act is applicable, and he is covered by the ESIC Scheme. If he experiences a fatal accident in the workplace, he will receive all benefits and facilities under the ESIC scheme.
On the other hand, Mr. Y, who is also from the same organization but is not under the ESIC Scheme, experiences a similar fatal accident. In this case, what type of benefits or compensation would he be entitled to, especially if the organization has not established any specific scheme for such situations?
Reply 1:
As mentioned earlier, the Workmen's Compensation Act will be applicable to provide compensation to a worker for accidents occurring during the course of employment. There are two possible scenarios where one person is covered by ESIC and the other is not within the same organization:
1) The second person has a salary exceeding Rs 10,000 per month.
2) The second person is employed in a non-implemented area of ESIC.
In both cases, the Workmen's Compensation Act is applicable. It is advisable to consider obtaining a WC insurance policy from a general insurance company for such situations.
Regards,
Bhavik H Chheda
Reply 2:
In ideal circumstances, the Workmen's Compensation Act applies in the absence of ESI coverage. If your management lacks contingency plans for such situations, it may seem like they are relying on the deep pocket theory when it comes to liabilities.
Best regards,
Surya
My specific question is whether the ESIC Act and the Workmen Compensation Act can be applicable in the same organization simultaneously. To elaborate on the previous example, if Mr. X and Mr. Y, who are both machine operators, are injured in an accident, Mr. X will undoubtedly benefit from ESIC. However, would the Workmen Compensation Act apply to Mr. Y, considering he is not covered by ESIC?
Regards,
Gurupada Pramanik
From India, Delhi
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I had submitted this article earlier and received two responses; however, they did not satisfy me. Therefore, I am submitting further information along with two replies.
Let's consider a scenario where Mr. X is working in an establishment where the ESIC Act is applicable, and he is covered by the ESIC Scheme. If he experiences a fatal accident in the workplace, he will receive all benefits and facilities under the ESIC scheme.
On the other hand, Mr. Y, who is also from the same organization but is not under the ESIC Scheme, experiences a similar fatal accident. In this case, what type of benefits or compensation would he be entitled to, especially if the organization has not established any specific scheme for such situations?
Reply 1:
As mentioned earlier, the Workmen's Compensation Act will be applicable to provide compensation to a worker for accidents occurring during the course of employment. There are two possible scenarios where one person is covered by ESIC and the other is not within the same organization:
1) The second person has a salary exceeding Rs 10,000 per month.
2) The second person is employed in a non-implemented area of ESIC.
In both cases, the Workmen's Compensation Act is applicable. It is advisable to consider obtaining a WC insurance policy from a general insurance company for such situations.
Regards,
Bhavik H Chheda
Reply 2:
In ideal circumstances, the Workmen's Compensation Act applies in the absence of ESI coverage. If your management lacks contingency plans for such situations, it may seem like they are relying on the deep pocket theory when it comes to liabilities.
Best regards,
Surya
My specific question is whether the ESIC Act and the Workmen Compensation Act can be applicable in the same organization simultaneously. To elaborate on the previous example, if Mr. X and Mr. Y, who are both machine operators, are injured in an accident, Mr. X will undoubtedly benefit from ESIC. However, would the Workmen Compensation Act apply to Mr. Y, considering he is not covered by ESIC?
Regards,
Gurupada Pramanik
From India, Delhi
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Dear Bhavik,
I appreciated your question. If an employee is covered under the ESIC scheme and he meets a fatal accident, the employer has to submit an Accident Report to the ESIC office & Factory Inspectorate within 24 hours from the date & time of the accident. The legal heir of the employee can claim compensation from the ESIC office. The amount given by the office is as per their annexure.
If ESIC is not applicable because his salary exceeds Rs.10,000/-, then the employer has to submit an accident report to the Factory Inspectorate within 24 hours and to the Labour Court Judge or Commissioner under W.C. Act, whichever is applicable to the zone. Thereafter, the employer has to compute the compensation and deposit the compensation amount to the Labour Court or Commissioner under the WC Act. Accordingly, the nominees of the deceased employee can put in a claim to receive compensation from the authorities.
For further clarifications, please email me at
.
Regards,
Bhushan Dahanukar
From India, Mumbai
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15I appreciated your question. If an employee is covered under the ESIC scheme and he meets a fatal accident, the employer has to submit an Accident Report to the ESIC office & Factory Inspectorate within 24 hours from the date & time of the accident. The legal heir of the employee can claim compensation from the ESIC office. The amount given by the office is as per their annexure.
If ESIC is not applicable because his salary exceeds Rs.10,000/-, then the employer has to submit an accident report to the Factory Inspectorate within 24 hours and to the Labour Court Judge or Commissioner under W.C. Act, whichever is applicable to the zone. Thereafter, the employer has to compute the compensation and deposit the compensation amount to the Labour Court or Commissioner under the WC Act. Accordingly, the nominees of the deceased employee can put in a claim to receive compensation from the authorities.
For further clarifications, please email me at
Regards,
Bhushan Dahanukar
From India, Mumbai
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The Workmen's Compensation Act 1923.pdf
Workmen's Compensation Act 1923.doc