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Rahul Goyal (Student)     29 June 2010

Exemption From Workmen's Compensation

I have a querry regarding ESI (employee state insurance) & Workmen's Compensation


I would like to know that if an employer gets ESI for his factory employees then does it make him eligible for getting exemption from Workmen's Compensation ? or the employer is required to obtain both ?


 9 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     30 June 2010

both are separate act and deals with different situation.

and employer is required to follow both the acts.

V.RAJESHWAR (Advocate)     30 June 2010

In case ESI Act is not applicable to the area where the factory is located, then the employer/contractor has to take insurance coverage for the workmen under workmen compensation act. 


1 Like

Rahul Goyal (Student)     30 June 2010

Thank you sir for the info

Govind Sharma (Manager- HR & Admin)     30 June 2010

I think whoever has replied to this query has not gone through the Act carefully


Although Workmen's Compensation Act and Employees State Insurance Act different, employees can take benefit from either of them, they cannot be covered for the same thing and cannot take dual benefit

Rahul Goyal (Student)     30 June 2010

Thank you Govind Sir for the info


Actually i wanted to have the information from the company's prespective i.e. if the factory is located in the area where ESI is applicable and the employer chooses to have ESI for it's employees than does that make company eligible for exemption from Workmen's Compensation or the employer needs to cover his employees under both the schemes ?

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     30 June 2010

well learned Mr. Govind Sharma please be informed that compliance under Workmens Compensation and under ESI scheme is different.

its not that you will have to provide for insurance coverage only.

ESI deals with other aspects of the same.

Govind Sharma (Manager- HR & Admin)     30 June 2010

Dear mr. Gulamayyuddin,

I completely agree to you. Here, the person who have asked question related to that only that if a peron is alredy covered under ESI Act for the things which is mentioned in Workmen's compensation Act, then can he take dual benefit?

Correct me Mr. Rahul if I am intrepreting your query wrongly.

The straight answer is "NO"


Yes, for the any benefit/ remedy mentioned in Workmen's Compensation Act or vice versa, the person can claim as per the things mentioned in the Act.


For instance, a person contributing in ESI can take benefit of medical and others which is normally not covered under workmen's compensation Act. The workmen's compensation Act is a social labour legislation to protect an employee's interest if that particular employee get injury/ temporary or permanent disablement or death only during employment whereas in ESI even if you are sick or suffering from prolonged disease which has not occured due to industrial or occupational hazard you can treated at ESI hospitals.


I hope I am clear




Govind Sharma (Manager- HR & Admin)     30 June 2010

Dear Rahul,


 Also refer my reply given in response to Gulammayudin and his reply to. this will clear your doubt

SATYABRAT (Sr.Executive HR)     29 January 2015

Dear Govind Sir, You are requested to clear my query - "  if   a factory is covered under ESIC,  then there WC Act  is applicable or not ? if Yes, please let me know under what section or clauses.

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