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In case of contractual employee both contractor and principal employer are liable to pay
compensation to employee in case of mishap defined in the act.
Q 2 : Can an employee or his dependent take claim under both ESI and Employee
Compensation Act?
No, employee or his dependent can take claim under only one Act either ESI or Employee
Compensation Act.
Q 3 : Can company take insurance policy to insure its liability under Employee Compensation
Act?
Yes, there are insurance policies available to cover such liabilities and called WC-Workmen
Compensation Policy. In case of any claim insurance company need to pay the same to
claimant.
Also commissioner can direct insurance company to pay claim as per act even if claimant has
claimed lesser amount.
Q 4 : Compensation calculation considering wage which is less than minimum wages of the
state. Possible?
In one of the case, Karnataka High court has mentioned that in case workman wage is less than
minimum wage of the state then minimum wage should be considered for calculation of
Compensation.
It should be within one month else 12% interest on amount should be paid by employer apart
from 50% penalty.
Employee
Yes