STD: FYBMS

SUB: INDUSTRIAL LAW

TOPIC

THE EMPLOYEE STATE INSURANCE ACT 1948

DEFINITION

Employee: Employee refers to any person employed on wages in connection to with the work of factory establishment to which the

act applies. Includes technical manual, clerical and supervisory functionary

employees or technical and non-technical Covers admin staff .

Does not include railways, defence, and mines.

INTRODUCTION

Employ The ESI Act, 1948 - Social welfare legislation with object of providing benefits to

employees for sickness, maternity and employment of factories or establishments, but drawing wages only up to Rs 6,500 per month

entitled to health insurance cover under ESI act.

HISTROY

Pioneering measure in social insurance in India.

Health insurance first discussed in 1927 by Indian legislature.

Originally called “workmen’s state insurance bill” 1946.

Came into force on 19th April 1948.

The employees’ state insurance act – 1948

Registration

Registration of a factory with the employees’ state insurance corporation (esi) is a statutory

responsibility of the employer under section 2-a and 10-b.

Declaration of registration in form 01 to be furnished to the appropriate regional office within

15 days of the act becoming applicable.Employer should get the declaration form filled in

by every employee covered under the scheme.

BENEFITS

SICKNESS AND

EXTENDED SICKNESS BENEFIT

MATERNITY BENEFIT

DISABLEMENT BENEFIT

DEPENDENT

BENEFITS

MEDICAL BENEFIT

FUNERAL BENEFIT

1. SICKNESS AND EXTENDED SICKNESS BENEFIT’S

Sickness benefit represent cash payment made to insurance person during period of sickness occurring in benefit period.

QUALIFING CONDITION To become eligible insurance person should paid contribution for not less

than 78 days . Person has to wait for at least 9 month to get sickness benefit. Insured persons suffering from Tb, leprosy, mental and malignant diseases or

other specified long term diseases are entitled to extended benefits at higher rates, provided he has been continually employed for at least two years.

2. MATERNITY BENEFIT’S Implies cash payment to an insured woman in case of confinement or

miscarriage or sickness arising out of pregnancy or premature birth.Woman should have contributed for minimum 70 days in the preceding two

consecutive contribution periods.Daily rate of benefits double the standard sickness benefit rate, i.e. Full wages.Normally payable for max 12 weeks for confinement and 6 weeks for

miscarriage or medical termination of pregnancy.Payable even in the event of the death of the woman.

3. DISABLEMENT BENEFIT’S In case of temporary disability arising out of employment

injury, this benefit is admissarable for the entire period certified by an insurance medical officer/practitioner for which the insured person does not work for wages.

Rate payable not less than 70% of daily wages; minimum 3 days of incapacity required.

In case injury results in permanent, partial or total loss of earning capacity, periodical payments to be made for life. One-time lumpsum is permissible in certain cases

4. DEPENDENT’S BENEFIT’SPeriodical pension paid to dependants of deceased where death occurs out of

employment injury or disease.Widows: 3/5th of benefit rate for life or until remarriageChildren: 2/5th of benefit rate until 18Total amount distributed not to exceed ceiling of disablement benefit.Benefit not paid to married daughters. In case there is no widow or child, benefit can be paid to other dependants including

parents.Amount paid is reviewed and increases granted from time to time to compensate for

erosion in real value and cost of living.

5. MEDICAL BENEFIT’S In-patient treatmentFree supply of drugs and dressingX-ray and laboratory investigationsVaccination and preventive innoculationsAnte-natal, confinement, post-natal careAmbulance service or conveyance chargesFree diet during admission in hospitalsMedical certification

6. FUNERAL BENEFIT’SFuneral expenses are in the nature of a lump sum payment up to a

maximum of rs.2500 made to defray the expenditure of the funeral of deceased insured person.

The amount is paid either to the eldest surviving member of the family or, in his absence, to the person who actually incurs the expenditure on the funeral.

ALL BENEFITS UNDER THE ESI SCHEME ARE PAID IN CASH EXCEPT MEDICAL BENEFIT, WHICH IS GIVEN IN KIND.

PROTECTION An employer cannot dismiss or punish an employee under treatment for sickness

of in receipt of any benefit or absent from work due to illness. Any notice of dismissal, discharge or reduction is invalid. However, the employer can discharge or punish the employee if:

He has received temporary disablement benefit and remained absent for 6 months or more

Is under treatment for sickness other than tb or arising out of pregnancy and remained absent for 6 months or more

Is under medical treatment for TB or a malignant disease and has remained absent continuously for 18 months or more.

CONCLUSION

THANK YOU…….