The Employees State Insurance Act, 1948 Introduction Landmark in social security legislation Reduction or loss of earnings due

ue to illness, disablement, injury, maternity, old age, unemployment or death. Latest amendment 1948: 1. Extension 2. Stringent Object Introduce Social Insurance by the contribution of both Comparison with Workmens Compensation Act, 1923 Eligibility - Only manual workers In ESI all category less than 15,000/ Benefits - Very rigid/narrow In ESI, it is liberal Dying legislation (sec. 53 of ESI puts a Compensation Act, 1923) Scope Does not apply to the following Seasonal factories Government undertakings having better facilities Navy, Army, Air force Home based piece rate production Salary more than 15,000/ Factories with power and less than 10 persons or without power and less than 20 persons Apprentices, Mines, Railway Sheds Definitions A. Employment injury 1. Cause by accident 2. Occupational disease Accident inside or outside factory No territorial limit for occupational disease Place and time of accident should not be totally unrelated B. Employee: Any person employed for wage, directly or indirectly employed by the principal employer, including temporary employee. E.g. Canteen Workers run by contractors Administration: Central ESI Corporation Executive Body (Standing Committee)

bar

on

Workmens

Regional

Medical Benefit Council Regional Boards Local Committee Local Medical Benefit Council Chairman and Vice-Chairman and 5 Nominees by Central Government Representatives form states / U.T. appointed by State Government 10 representatives of employers + employees each 2 persons from medical profession 3 M.Ps

ESI Corporatio n

Powers of ESI Corporation Appointment of inspectors Determination of contributions o 4.75% of total wage bill by employer o 1.75 by employee Contribution Period April to September October to March Benefit Period - Starts three months after the closure of a contribution period 1st Jan - 30th June 18th July to 31st December Amount of Daily wage Duration 91 days 309 / 2

Benefits - 6 Types Types Condition A. Sickness 78 Days Benefits Extended sickness 2 years of benefit continuous employment 156 days contribution Enhanced sickness Same as SB benefit B. Disablemen t Benefit Temporary Permanent partial Permanent total

40% more than 124 / SSB years

Not less than the 7 days (V) daily wage 14 days (T) 70% of wage Till disablement lasts Proportional to Life time the loss of earning capacity 40% more than Life time

C.Dependents Benefits D. Maternity Benefits Confinement, Miscarriage, Sickness out of pregnancy

SSB 70% of wage

3/5 - Widow 2/5 Son/Daughter

12 Weeks Confinement 6 Weeks Miscarriage 4 Weeks Sickness Medical Bonus @ Rs.1000/- if not availed medical facilities for child birth E.Medical Benefits OP and IP Kind 3 months initially (First time) F.Funeral Benefits 2500 payable to the eldest surviving member Penalties For false statements - Six months imprisonment / Rs. 200 Failure to pay contribution - 6 to 12 months imprisonment or Rs. 4000 / Rs. 5000 / Rs. 10,000 or both Procedure Claim form needs to be filled up Supported by medical / death certificate issued by insurance MO Claims to be submitted to the local office

78 days

Full wage