THE EMPLOYEES

STATE INSURANCE
ACT 1948
 This fund is managed by the Employees' State
Insurance Corporation (ESIC)
 under Ministry of Labour and
Employment, Government of India
PROVISIONS UNDER THE ACT…….
 Objective
 Applicability of the act

 Administration

--- Employee state insurance corporation

---Standing committee
---Medical benefit council
 Contribution

 Benefits

 Penalties
OBJECTIVE
 To provide for certain benefits to employees in
case of sickness, maternity and injury during
employment
APPLICABILITY OF THE ACT
 The act extends to the whole of India including
the state of Jammu and Kashmir
 Employing 10 or more workers in factories

 Employing 20 or more workers in shops

 This act covers all workers whose wages do not

exceed Rs. 10,000 per month
ADMINISTRATION OF THE SCHEME
 The administration of the ESI scheme under the act
is entrusted to an autonomous body called the ESI
corporation.
 The union minister for labor is the chairman and the
secretary to Govt. of India, Ministry of Labor is the
vice chairman of this corporation.
 It consists of members representing Central and
State Govt. ,employers and employees organizations,
medical profession and Parliament.
 There is a standing committee, constituted from the
members of the corporation, which acts as an
executive body for the administration of the scheme.
ADMINISTRATION OF THE SCHEME
 Administered by the employees state insurance
corporation (ESI Corporation) which has been set
up by the central government
 A standing committee has been constituted from
among the members ESI Corporation to act as an
executive body for the administration of the
scheme.
 A medical benefit council has been set up to
advise the ESI Corporation on medical questions.
 The corporation can also appoint regional boards,
local committees
THE EMPLOYEES STATE INSURANCE
CORPORATION (ESI CORPORATION)

 The ESI Corporation consist of following

members:
 A chairman, a vice chairman and not more than 5
persons to be appointed by the central
government
 1 person each representing each of the states

 1 person to be appointment by the central

government to represent the union territories.
 10 persons representing employers to be
appointed by the central government
 2 persons representing the medical profession to
be appointed by the central government
 3 members of parliament, of whom 2 shall be
from Lok Shaba and one from Rajya Sabha.
DUTIES OF THE ESI CORPORATION
 Budget estimates
 Accounts

 Audits
STANDING COMMITTEE
 A chairman, appointed by central government
 3 members of ESI Corporation, appointed by
central government
 3 members of ESI Corporation representing state
government
 3 members from among the members of ESIC
representing employers
 3 members from among the members of ESIC
representing employees
 1 member from among the members of the ESI
corporation representing the medical profession
 1 member from among the members of the ESI
Corporation elected by the parliament
MEDICAL BENEFIT COUNCIL

 Advise to administration on Medical Benefit,

purpose of grants and related matter
 A chairman, appointed by central government
 A deputy director, health service appointed by
central government
 1 members representing state government
 3 members representing employers appointed by
central government
 3 members representing employees appointed by
central government
 3 members, of whom not less than 1 shall be a
women, representing medical profession
CONTRIBUTIONS(CHAPTER IV)
BENEFITS (CHAPTER V)
 1. Sickness and extended sickness benefit
 2. Disablement benefit

 3. Dependants’ benefit

 4. Medical benefit

 5 Funeral benefit
SICKNESS BENEFIT
 Every insured employee is entitled to the cash
benefit for the period of sickness certified by a
duly appointed medical practitioner if the
contributions in respect of him were payable for
not less than 78 days in the corresponding
contribution period
DISABLEMENT BENEFIT
 It is payable to an employee who is injured in the
course of his employment and is permanently or
temporarily disabled or contacts any occupational
disease.
 A person who sustains temporary disablement
for not less than 3days(excluding the day of
accident) shall be entitled to periodical payment
as may be prescribed by the central govt.
 The benefit of temporary disablement is,
however, not payable for any day on which the
employee works, remains on lease, holiday or
strike in respect of which he receives wages.
DEPENDENTS BENEFIT
 If any employee dies during any period for which
he is entitled to a cash benefit, the amount of
such benefit shall be payable up to & including
the day of his death.
 The amount of benefit shall be paid to the
nominee or, where there is no nomination, to the
heir or legal representative of the deceased
employee.
MEDICAL BENEFIT
 An insured person or a member of his family
whose condition requires medical treatment and
attendance entitled to receive medical benefit.
 Employer not to dismiss or punish employee
during period of sickness
FUNERAL EXPENSES
 If an insured employee dies, the eldest serving
member of his family is entitled to
reimbursement of such expenditure subject to
maximum of Rs.2500 (W.E.F. December,2000)
 The claim for the funeral expenses should be
submitted with prescribed document and form
within three months of the death of the insured
employee
OFFENCES AND PENALTIES
 Punishment for false statement :- In this case
any false statement or false representation, shall
be punishable with imprisonment up to Rs.2000
or with both
 Punishment for failure to pay contributions :- if
any person fails to pay any contribution which
under to this act he is liable to pay, he shall be
punishable with imprisonment up to three years.