ABSTRACT

A Study on the Working of the Employees’ State Insurance Corporation

has been undertaken to examine the various aspects of the working of the Employees’
State Insurance (ESI) Corporation related to the administration and execution of
the ESI Scheme in Kerala.The study has examined the effectiveness of the benefits
provided by the Corporation to the insured persons under the ESI Scheme, the
working of the machinery for the administration of the ESI scheme, the fund
management of the Corporation for the ESI Scheme and has put forward proposals
so as to make the functioning of the Corporation more effective.

The study covers a period of 10 years from 1994-95 to 2003-04. Both primary
and secondary data were used in the study. The primary data were collected from
the respondents (300 insured persons from 100 enterprises covered under the ESI
Scheme) based on structured interview schedule. Multistage sampling frame work
was followed for selecting the respondents for the study. The secondary data were
collected from the publications of the ESI Corporation, reports, books and
periodicals. The data collected were suitably classified and analysed keeping in
view the objectives of the study.

On the basis of the findings of the study, it is deduced that the ESI Corporation
is not keen on giving adequate information to the insured persons and employers
about the ESI Scheme, the quality of medical care provided to the insured persons
through the ESI dispensaries and hospitals is rather poor, the amount of cash benefit
is meager, there is delay in disbursement of cash benefits, the insured persons do
not get the services of the administrative staff for availing of the benefits, the working
of the machinery of the Corporation for the administration of the ESI Scheme is not
up to the expectations of the insured persons and employers, due concern is not
given to them while taking decisions related to the administration of the ESI Scheme,
the Corporation gives importance to the raising of funds targeting only the insured
persons and employers but is not very enthusiastic about its effective utilisation.