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Employee State Insurance

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21 views4 pages

Employee State Insurance

Uploaded by

moodapk34
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Employee State Insurance Act 1948

Origin of Employee State Insurance Act


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 of Employee State Insurance Act
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. Under the Act, employees will
receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased
workers and compensation for fatal or other injuries and diseases.
Definitions
According to Section 2 (m) of Factories Act, 1948, Factory means any premises including the precints thereof
whereon ten or more persons are employed or were employed for wages on any day of the preceding twelve months,
and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried
on, or
whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily
so carried on.
According to Section 2 (k) of Factories Act, “manufacturing process” means any process for
making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or
otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, or
pumping oil, water, sewage or any other substance; or;
generating, transforming or transmitting power;
composing types for printing, printing by letter press, lithography, photogravure or other similar process or book
binding.
constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels;
Areas Covered
• The ESI Scheme is being implemented area-wise by stages. The Scheme is being implemented in
almost all union territories and states except Nagaland, Manipur, Tripura, Sikkim, Arunachal
Pradesh and Mizoram.
Administration of the Act
• The provisions of the Act are administered by the Employees State Insurance Corporation. It
comprises members representing employees, employers, the central and state government,
besides, representatives of parliament and medical profession.
• A standing committee constituted from amongst the members of the corporation, acts as an
executive body. The medical benefit council, constituted by the central government, is another
statutory body that advises the corporation on matters regarding administration of medical
benefit, the certification for purposes of the grant of benefits and other connected matters.
Benefits under the Scheme
• Employees covered under the scheme are entitled to medical facilities for self and dependants.
They are also entitled to cash benefits in the event of specified contingencies resulting in loss of
wages or earning capacity. The insured women are entitled to maternity benefit for confinement.
• Where death of an insured employee occurs due to employment injury or occupational disease,
the dependants are entitled to family pension. Various benefits that the insured employees and
their dependants are entitled to, the duration of benefits and contributory
Medical benefits
From day one of entering insurable employment for self and dependants such as spouse, parents and children own
or adopted.
Miscarriage or sickness related thereto.
For claiming this an insured woman should have paid for at least 70 days in 2 year.
consecutive contribution periods i.e. 1 year. • The benefit is normally payable for 12 weeks, which can be further
extended up to • 16 weeks on medical grounds. • The rate of payment of the benefit is equal to wage or double the
standard sickness • benefit rate. • The benefit is payable within 14 days of duly authenticated claim papers.
Disablement benefit
Disablement benefit is payable to insured employees suffering from physical
disablement due to employment injury or occupation disease.
Obligations of Employers
The employer should get his factory or establishments registered with the E.S.I. Corporation within 15 days after the
Act becomes applicable to it, and obtain the employers Code Number.

The employer should obtain the declaration form from the employees covered under the Act and submit the same
along with the return of declaration forms, to the E.S.I. office. He should arrange for the allotment of Insurance
Numbers to the employees and their Identity Cards.

The employer should deposit the employees’ and his own contributions to the E.S.I. Account in the prescribed
manner, whether he has sufficient resources or not, his liability under the Act cannot be disputed.

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