EMPLOYEE STATE INSURANCE ACT, 1948

The Employees’ State Insurance Act, 1948, provides to the workers not only accident benefits but also other benefits such as sickness benefits, maternity benefits and medical benefits. Under the Act, the workers are also required to contribute to a social insurance fund which is to be utilised for conferring benefits to them.

Applicability

The Act applies to :

1. All factories excluding seasonal factories employing 10 or more persons;

2. Any establishment including shop, hotel, restaurants, road motor transport establishments, cinemas including preview theaters, newspaper establishments, educational institutions (including public, private, aided or partially aided) run by an individual, trust, society or other organisations and medical institutions(including corporate, joint sector, trust, charitable and private ownership hospitals, nursing homes, diagnostic centres, pathological labs).

3. Any establishment, which the Govt. may specifically notify as being covered.

Eligibility of Employees :

1. Any person employed for wages up to Rs. 21,000/- in or in connection with the work of a factory or establishment.

2. Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.

Benefits Under The Act

1. Free medical treatment is offered to employees at ESI hospital, dispensaries or other recognised shops by ESI.

2. About 7/12th of employees normal wages will be payable to him by ESI as compensation during sickness.

3. Maternity benefit for 12 weeks of which not more than 6 weeks should be preceding confinement.

4. Injury during/in course of employment resulting in temporary/permanent disablement entitles the covered employee to a regular payment to substitute his lost wages.

5. Death during the course of employment entitles specified dependents to a regular payment.

6. One time payment of Rs. 1,000 to help meet funeral expenses.

7. The Corporation has taken more steps to make the scheme more favourable and these include -

a) Payment of Long Term benefits through Electronic Clearing Scheme (ECS).
b) Rates of Cash Benefits have been enhanced and entitlements have been enlarged.
c) Cashless provisions of super speciality services through network hospitals have been introduced.
d) Issue of smart cards called ‘Pehchan’ and networking of all ESI institutions for easy access.
e) Improvement of work environment and facilities for Insured Persons (IPs) visiting ESIC Offices has been implemented.