EMPLOYEES' STATE INSURANCE ACT, 1948

EMPLOYEES' STATE INSURANCE ACT, 1948

The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury resulting in loss of wages or earning capacity.  The Act also guarantees reasonably good medical care to workers and their immediate dependants. Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers.

The ESI Act applies to non-seasonal factories or manufacturing units, shops & establishments, Private Medical & Educational Institutions employing 10 or more persons. Under the enabling provisions of the Act, a factory or establishment, located in a geographical area, notified for implementation of the scheme falls in the purview in the Act. Employees of the aforesaid categories of factories and establishments and drawing wages upto Rs.10,000/- a month are entitled to health Insurance cover under the ESI Act.

The Employees' State Insurance Corporation (ESIC) is the premier social security organization in the country. It is the highest policy making and decision taking authority under the ESI Act and oversees the functioning of the ESI Scheme under the Act. The corporation comprises members representing Central and State Governments, employers, employees, Parliament and the medical profession. Union Minister of Labour functions as the Chairman of the Corporation. A Standing Committee constituted from among the members of the Corporation acts as the Executive Body for the administration of the Scheme.

The basic provisions of the Act are :-

Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.

It provided for an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity.

In ESI scheme, a worker in insurable employment is called insured person (IP). Insured persons and their family are entitled to different types of benefits. The benefits are broadly classified into two: (1) Medical benefits and (2) cash benefits.

The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefit in certain contingencies and maternity benefit in case of women employees. In case of employment-related disablement or death there is provision for a disablement benefit and a family pension, respectively

Thus in nutshell we can say, it provided for six social security benefits:- 

1.       Medical Benefit

2.       Sickness Benefit

3.       Maternity Benefit

4.       Disablement Benefit

5.       Dependants' Benefit

6.       Funeral Expenses 

These were some of the provisions regarding Employees State Insurance Act.

Author:

Sagar Gupta

Contact Number: 09918437886

Email: casgrgupta@gmail.com