One worker recently joined a factory died in an accident while coming to work. In total there are 100 employees in two shifts but WC policy is taken for 60 employees and it is written in the policy that there should not be more than 60 employees at the site at any time. The employee who died in an accident has also not even taken his first wages. My query is:
1. What will be the status of the claim?
2. What steps the employer should take?
3. Is the employer has to report the matter to factory inspector & insurance company?
4. What's the time frame for reporting the matter to factory inspector & insurance company?
Thanks
From India, Mumbai
1. What will be the status of the claim?
2. What steps the employer should take?
3. Is the employer has to report the matter to factory inspector & insurance company?
4. What's the time frame for reporting the matter to factory inspector & insurance company?
Thanks
From India, Mumbai
My Dear Anonymous friend,
Section 88 of the Factories Act, 1948 if an accident occurs in any factory which causes death, or bodily injury by reason of which the person injured is prevented from working for a period of 48 hours or more immediately following the accident, the Manager of the factory shall send notice of the same to such authorities and in such form as may be prescribed by the Rules framed by the State Government in that regard.
The above is the law position. Now coming to your queries, my reply is under:-
1.It doesn't make difference as to whether the concerned worker has drawn his first salary or not. He became the worker of a particular establishment once his name is borne on the muster roll of the company.
2.The employer may have objection for reporting the accident to the authorities as the accident has occurred while coming to factory. If he is agree then there is absolutely no problem.
3. If the WC policy is taken for 60 workers, which are maximum number on the job at any point of time, there will be no problem for his coverage under the policy. You need to inform the insurance company about the accident with detailed particulars.
4,. One need to report the accident causing death immediately to the Factory Inspector as well as to the nearest police station. Information to the ESIC authorities is also required, if the deceased was covered under ESI Act.
Hope the above clears your queries.
BS Kalsi
Member since August, 2011
From India, Mumbai
455Section 88 of the Factories Act, 1948 if an accident occurs in any factory which causes death, or bodily injury by reason of which the person injured is prevented from working for a period of 48 hours or more immediately following the accident, the Manager of the factory shall send notice of the same to such authorities and in such form as may be prescribed by the Rules framed by the State Government in that regard.
The above is the law position. Now coming to your queries, my reply is under:-
1.It doesn't make difference as to whether the concerned worker has drawn his first salary or not. He became the worker of a particular establishment once his name is borne on the muster roll of the company.
2.The employer may have objection for reporting the accident to the authorities as the accident has occurred while coming to factory. If he is agree then there is absolutely no problem.
3. If the WC policy is taken for 60 workers, which are maximum number on the job at any point of time, there will be no problem for his coverage under the policy. You need to inform the insurance company about the accident with detailed particulars.
4,. One need to report the accident causing death immediately to the Factory Inspector as well as to the nearest police station. Information to the ESIC authorities is also required, if the deceased was covered under ESI Act.
Hope the above clears your queries.
BS Kalsi
Member since August, 2011
From India, Mumbai
Hope you have informed Chief Inspector of Factories, police station by letter. If not, DO IT AT ONCE!
From where the worker was coming to work? Do you have / know his residential address? Was he travelling from residence? Was the the time of accident too before the time it would have taken him to report for duties? The answer to this question is crucial for Employee Compensation Act policy or ESI Act. What is the title of your insurance policy?
Please understand in such complex case the details mentioned by you are too meager.
Important questions are:
A. Are all workers drawing 15000+ wages?
B. Is the factory in ESI non-implemented area?
If answer to A is no or yes and to B is Yes, then Employee Compensation Act is applicable.
If answer to A is no, and to B is No, then ESI Act is applicable; the insurance policy will be redundant.
If answer to A is yes, to to B is yes or no, ESI Act is not applicable.
If you have taken In fact the purpose of the policy will be void. under.
C. Are the workers covered under ESI Act?
If yes then you need to cover him & generate his IP number and write letter to local office narrating the
circumstances.
Shrikant Prabhudesai
7738665045
From India, Mumbai
From where the worker was coming to work? Do you have / know his residential address? Was he travelling from residence? Was the the time of accident too before the time it would have taken him to report for duties? The answer to this question is crucial for Employee Compensation Act policy or ESI Act. What is the title of your insurance policy?
Please understand in such complex case the details mentioned by you are too meager.
Important questions are:
A. Are all workers drawing 15000+ wages?
B. Is the factory in ESI non-implemented area?
If answer to A is no or yes and to B is Yes, then Employee Compensation Act is applicable.
If answer to A is no, and to B is No, then ESI Act is applicable; the insurance policy will be redundant.
If answer to A is yes, to to B is yes or no, ESI Act is not applicable.
If you have taken In fact the purpose of the policy will be void. under.
C. Are the workers covered under ESI Act?
If yes then you need to cover him & generate his IP number and write letter to local office narrating the
circumstances.
Shrikant Prabhudesai
7738665045
From India, Mumbai
If a worker may b casual or permanent worker dies or is injured, he is entitled to receive workmen compensation the cover under this is predefined in all sory of accidents. Make sure you diagnose his death, fill the form issued by your respective state factory rules. Also inform CIF and expect him to come any time for inspection. If your factory fall under ESI the procedure reaches to local police. Make sure you obtain his death certificate
From India, undefined
From India, undefined
In fact, there are 120 workers in the factory and out of which 20 are covered in ESI. Out of rest 100 workers who work in two shifts, 60 workers are covered in Employee Compensation Policy. At a given time around 60 workers remains on the site.
My question is
Is it mandatory to take cover of all 100 workers in the Employee Compensation Policy or coverage of 60 employees will be okay?
Is meeting with an accident while coming to factory covered under Employee compensation act?
Is the victim's family to report the matter to Commissioner office?
Regards
From India, Mumbai
My question is
Is it mandatory to take cover of all 100 workers in the Employee Compensation Policy or coverage of 60 employees will be okay?
Is meeting with an accident while coming to factory covered under Employee compensation act?
Is the victim's family to report the matter to Commissioner office?
Regards
From India, Mumbai
Many thanks for your advices.
In fact, there are 120 workers in the factory and out of which 20 are covered in ESI. Out of rest 100 workers who work in two shifts, 60 workers are covered in Employee Compensation Policy. At a given time around 60 workers remains on the site.
My question is
Is it mandatory to take cover of all 100 workers in the Employee Compensation Policy or coverage of 60 employees will be okay?
Is meeting with an accident while coming to factory covered under Employee compensation act?
Is the victim's family to report the matter to Commissioner office?
Regards
From India, Mumbai
In fact, there are 120 workers in the factory and out of which 20 are covered in ESI. Out of rest 100 workers who work in two shifts, 60 workers are covered in Employee Compensation Policy. At a given time around 60 workers remains on the site.
My question is
Is it mandatory to take cover of all 100 workers in the Employee Compensation Policy or coverage of 60 employees will be okay?
Is meeting with an accident while coming to factory covered under Employee compensation act?
Is the victim's family to report the matter to Commissioner office?
Regards
From India, Mumbai
Dear sir,
It is strange that you are not sharing complete details in one go. Now it is clear why you name yourself as annonymous .
Now coming to expressing legal opinion . You mentioned in second post about ESI is applicable, obviously your establishment would be located in Notified area .So, all workmen / employees who are drawing Wages upto Rs. 15,000/ month are to be compulsorily covered under ESIC Scheme. During Inspection by ESI inspector, the ledger, payroll all will evidence that for employees left uncovered , the employer's share and employees share alongwith penalty and damages fully be recovered .
Let me express one more thing which is I felt on occasions important for all HR professionals.This is real HR Task- to ensure Law compliance and save always company from risks and non compliance. When company is liable directly for non compliance then who will save I fail to understand that why this worker was left uncovered under ESI but forcefully being attempted to seek advantage of EC for a death victim. HR practitioners should be not forgetting Human element the main and lead role.Had he been under ESI, his dependents would get good pension.
In one PF matter, SCI has decided that employee who died ought to be covered under EPF and Pension, but he was since not covered, Apex court ruled that all pension and PF dues like a normal employees under PF cover will be recovered from company for dependents of the victim.
Regds,
RDS Yadav
Labour Law Adviser
and
Director,
Future Instt of Engg and Management Technology
From India, Delhi
It is strange that you are not sharing complete details in one go. Now it is clear why you name yourself as annonymous .
Now coming to expressing legal opinion . You mentioned in second post about ESI is applicable, obviously your establishment would be located in Notified area .So, all workmen / employees who are drawing Wages upto Rs. 15,000/ month are to be compulsorily covered under ESIC Scheme. During Inspection by ESI inspector, the ledger, payroll all will evidence that for employees left uncovered , the employer's share and employees share alongwith penalty and damages fully be recovered .
Let me express one more thing which is I felt on occasions important for all HR professionals.This is real HR Task- to ensure Law compliance and save always company from risks and non compliance. When company is liable directly for non compliance then who will save I fail to understand that why this worker was left uncovered under ESI but forcefully being attempted to seek advantage of EC for a death victim. HR practitioners should be not forgetting Human element the main and lead role.Had he been under ESI, his dependents would get good pension.
In one PF matter, SCI has decided that employee who died ought to be covered under EPF and Pension, but he was since not covered, Apex court ruled that all pension and PF dues like a normal employees under PF cover will be recovered from company for dependents of the victim.
Regds,
RDS Yadav
Labour Law Adviser
and
Director,
Future Instt of Engg and Management Technology
From India, Delhi
You are in serious trouble from ESI authorities. How can you cover part of employees in ESI & the rest under WC policy? Am sure wages of more than 20 employees is less than 15000 pm.
Today or tomorrow ESI will issue you notice & do inspection. You will have to pay both the ESI contributions from day your business started. ESI is very severe act as far as penal provisions are concerned. Get help from some consultant & cover all eligible employees. You will save penal interest. Have WC policy only for those beyond 15000.
From India, Mumbai
Today or tomorrow ESI will issue you notice & do inspection. You will have to pay both the ESI contributions from day your business started. ESI is very severe act as far as penal provisions are concerned. Get help from some consultant & cover all eligible employees. You will save penal interest. Have WC policy only for those beyond 15000.
From India, Mumbai
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