Topic: Employee State Insurance Act, 1948

Introduction:
The Employee State Insurance Act,1948, is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. The Act in fact tries to attain the goal of socio-economic justice enshrined in the Directive principles of state policy under part 4 of our constitution, in particular, articles 41, 42 and 43 which enjoin the state to make effective provision for securing, the right to work, to education and public assistance in cases of unemployment, old age, sickness and disablement. The act strives to materialize these avowed objects through only to a limited extent. This act becomes a wider spectrum than factory act, in the sense that the factory act is concerned with the health, safety, welfare, leave etc of the workers employed in the factory premises only. But the benefits of this act extend to employees whether working inside the factory or establishment or elsewhere or they are directly employed by the principal employee or through an intermediate agency, if the employment is incidental or in connection with the factory or establishment.

Origin:
The Employee State Insurance act was promulgated by the Parliament of India in the year 1948. To begin with the ESIC scheme was initially launched on 2nd February 1952 at just two industrial centers in the country namely Kanpur and Delhi with a total coverage of about 1.20 lakh workers. There after the scheme was implemented in a phased manner across the country with the active involvement of the state governments.

Objectives:
The ESI Act is a social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and employment injury. The insured employees and their dependants are entitled to the following benefits: Medical benefit Full medical facilities for self and dependants are admissible from day one of joining insurable employment. Whereas, the primary, out patient, in patient and specialist services are provided through a network of panel clinics, ESI dispensaries and hospitals, super specialty services are provided through a large number of advanced empanelled medical institutions on referral basis. Sickness benefit [cash] Sickness benefit is payable to an insured person in cash, in the event of sickness

resulting in absence from work and duly certified by an authorised insurable medical officer/ practitioner. Extended sickness benefit [cash] Extended sickness benefit is payable to insured persons for the period of certified sickness in case of the 34 long-term diseases specified in the Act which need prolonged treatment and absence from work on medical advice. Enhanced sickness benefit [cash] This cash benefit is payable to insured persons in the productive age group for under going sterilisation operation, viz., vasectomy/ tubectomy. Maternity benefit [cash] Maternity benefit is payable to insured women in case of confinement or miscarriage or sickness related thereto. Disablement benefit [cash] Disablement benefit is payable to insured employees suffering from physical disablement due to employment injury or occupation disease. Dependents benefits [cash] Dependents benefit [family pension] is payable to dependents of a deceased insured person where death occurs due to employment or occupational disease. Other benefits

Funeral expenses - On the death of an insured person subject to a maximum of a Rs.2,500 payable at the local office. Vocational rehabilitation - In case of disabled insured persons under 45 years of age with 40% or more disablement. Free supply of physical aids and appliances such as crutches, wheelchairs, spectacles and other such physical aids. Preventive health cares services such as immunization, family welfare services, HIV/AIDS detection, treatment etc. Medical bonus Rs.250 is paid to an insured woman or in respect of the wife of an insured person in case she does not avail hospital facilities of the scheme for child delivery.

Powers of Employees State Insurance Corporation (Section17):

The Corporation may employs the necessary staff for the efficient transaction of its business. 1. It can acquire, hold or sell or otherwise transfer any movable and immovable properly-Sec. 29(1) 2. It can from time to time invest any money which are immediately required.-Sec. 29(2) 3. It may with the sanction of the Central Govt. raise loans and take measures for discharging such loans. Sec 29(3) 4. It may constitute for the benefit of its staff a benefit fund. Sec. 29(4) 5. It may appoint such person as inspector as it thinks fit for the purpose of this Act.Sec. 45(1) As per Section 19, Power to promote measures for health of insured persons, Corporation can take these steps for the benefit of the insured person like: 1. The Corporation may promote measures for the improvement of the health and welfare of the insured person. 2. If may take steps for the rehabilitation and re-employement of insured persons who have been disable or injured.

Rights & Duties

RIGHTS AND DUTIES OF EMPLOYERS

a) Duties of Employers
1. An employer will apply in Form-01 for coverage under the ESI Act, within 15 days after the Act becomes applicable to a factory or establishment. 2. The employer will submit Declaration Form in respect of all coverable employees in the unit.

3. The employer will collect temporary identity cards from the Branch Office concerned followed by permanent photo identity cards and pass them on to the employees concerned. 4. The employer will deposit both employees and employers contribution as per specified rates within 21 days of the following month. 5. The Employer will maintain an Accident Book and submit accident reports to the Branch Office, involving insured worker(s) on the job, within 24 hours of an accident. 6. The Employer will maintain all such records and registers as are required under the Act and produce them for verification/inspection before the authorised officers of the Corporation. 7. The employer will facilitate proper inspection of records/registers and the premises by visiting officers of ESIC as and when required. 8. The employer shall submit half-yearly Return of Contributions (RC) by 12th May/11th November every year with all columns properly filled. 9. The employee shall indicate insurance number of IPs in chronological order in the return of contribution and his own code number in all correspondence. 10. The employer will not make any false declaration or misrepresentation of facts, concerning the applicability of the Act, or, admissibility of benefits to employees regular, hired or contractual. 11. The Employer will ensure that contribution is paid in respect of all contract labour, badli and casual workers drawing wages upto Rs.7500/- a month. 12. The employer will promptly report the date of closure of a factory/establishment to the ESIC Branch Office/Regional Office, preferably within seven days of such closure and clear ESI liabilities. 13. The employer will report any change in business activity, address, ownership or the management to ESIC authorities forthwith. 14. An employer will also ascertain the liability towards ESI dues, while taking over the ownership of a factory/establishment through purchase, gift, lease, licence or otherwise as the new owner is liable to discharge past liabilities.

(b) Rights of Employers

1. Exemption from applicability of Workmen s Compensation Act, 1923 in respect of employees covered under the scheme.

2. Exemption from applicability of Maternity Benefit Act, 1961 in respect of insured women. 3. Right to be represented on ESI Corporation, Medical Benefit Council and other important committees of the Corporation that may be formed from time to time. 4. Right to be supplied requisite Forms as may be required for fulfilling any obligation under the ESI Act. 5. Right to recover employees share of contribution on the spot from the wages of insured persons. 6. Right to appeal to Employees Insurance Court in case of any disputes. 7. Right to seek exemption from the applicability of the Scheme in case benefits provided by the management are similar or superior to those available under the ESI Scheme. 8. Right of access to all essential information concerning the applicability of the Act, benefits, contribution, inspections and other procedures.

Configuration:
The Corporation shall consist of the following members: A Chairman, a Vice-chairman and not more than five persons all to be nominated by the State Government concerned. One person each representing each pf the State in which this Act is in force to be nominated by State Govt. concerned. One person to be nominated by the C entral Govt. to represent Union Territories. Five persons representing employees to be nominated by the Central Government in consultation with such organisations of employers. Five persons representing employees to be nominated by the Central Government in consultation with the organisations of such employees. Two persons representing the Medical profession to be nominated by the Central Govt. in consultation with such organisations of medical practitioners. Three members of the Parliament of whom two shall be Members of Lok Sabha and one shall be the member of Rajya Sabha. The Director-General of the Corporation-Ex-officio

Terms of Office of Members (Section 5) The term of office of members of the Corporation other than ex-office members shall be four years. The Members of the Corporation shall on the expiry of the said period of four years, continue to hold office until the nomination or election of his successor is notified. All outgoing members of the Corporation are eligible to be Re-nominated or Re-election. (Section 6)