ESI Contribution, Can't Exempt Establishment Based On Pvt Insurance And Not Having Local Dispensary: AP HC

AP HC denies ESI exemption to establishments relying on private insurance without local dispensaries, reinforcing mandatory ESIC compliance for employee welfare. The Andhra Pradesh High Court has ruled that establishments cannot be exempted from Employees' State Insurance (ESI) contributions simply because they provide private insurance to their workers or because there are no ESI dispensaries nearby. The court emphasized that the ESI Act mandates contributions once an establishment falls within its purview, and only the appropriate government can grant exemptions through a specific application and inquiry process. This decision reinforces the compulsory nature of ESI contributions to ensure comprehensive social security and medical care for employees.