English
French
German
Italian
Japanese
KoreanEstablishments in Maharashtra to mandatorily have insurance
On 22 July 2024, the Maharashtra Government issued a notification (Notification) introducing changes to the rules framed under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (Maharashtra S&E Act). The Maharashtra S&E Act governs the employment conditions of workers in shops, residential hotels, restaurants, theatres, places of public amusement and other establishments situated in Maharashtra. The Notification mandates that establishments in Maharashtra must now include details of their insurance policy in the compliance forms that are required to be submitted. As a result, the Notification effectively makes it mandatory for establishments falling under the scope of the Maharashtra S&E Act to obtain an insurance policy.
We have provided a summary of the Notification below:
- What are the changes introduced under the Notification:
For establishments employing ten or more workers:
- The forms required to be filed at the time of registration and renewal of such registration now mandate that the establishment’s insurance certificate be provided.
- Annual Return filings must include the insurance policy number and its validity date.
For establishments employing less than ten workers, the form required to be filed upon commencement of business must also include the establishment’s insurance certificate.
It is important to note that the Notification does not specify the scope of the insurance coverage or the items against which it is required. Generally, insurance for establishments covers damages caused by natural or man-made disasters, protecting physical goods and equipment against loss from theft, fire, and other perils.
- Who is required to comply with the Notification: All establishments in Maharashtra. The term ‘establishment’ is broadly defined under the Maharashtra S&E Act and includes an establishment which carries on, any business, trade, profession, or any work in connection with, or incidental or ancillary to any of the above.
- When to comply with the Notification:
The Notification is in force from 22 July 2024. We understand that existing establishments in Maharashtra must procure insurance policies as indicated below:
- Annual return must be filed within two months from 31 December of each year. Therefore, if existing establishments do not have an insurance policy in place, one must be procured at the earliest prior to the filing of the annual return.
- In case of renewal of registration certificate of an establishment, the insurance policy must be procured before such renewal.
- For new establishments that are yet be registered under the Maharashtra S&E Act, the insurance policy must be procured before submitting the registration application.
The information contained in this document is not legal advice or legal opinion. The contents recorded in the said document are for informational purposes only and should not be used for commercial purposes. Acuity Law LLP disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident, or any other cause.
