The Employees' State Insurance Act 1948

THE EMPLOYEES’ STATE
INSURANCE ACT 1948
Presented By:
Harish Ramrakhyani
MBA sem IV
(DMSR-TCSW)
INTRODUCTION…
• A piece of social welfare legislation
enacted primarily with the object of
providing certain benefits to employees.
• Act covers wide spectrum than Factories
Act,1948.
• Act provide for..
a. Identification of employees who would be entitled
to the benefits.
b. Registration of employees and preparation of
Identity card.
c. Machinery for effective administration of Act.
d. Obligations of employer.
THE BEGINNING…
• Promulgated by the Parliament of India in
the year 1948.
• The ESIC scheme was initially launched
on 2 February 1952 at just two industrial
centres in the country namely kanpur
and Delhi with a total coverage of about
1.20 lac workers.
• There after the scheme was implemented
in a phased manner across the country
with the active involvement of the state
government.
OBJECTIVES..
• To provide for certain benefits to
employees in case of sickness,
maternity and employment injury.

• To make provision for certain other

matters in relation thereto.
APPLICABILITY…
• Non-seasonal, power using factories or
manufacturing units employing ten or
more persons and non-power using
establishments employing twenty or
more persons.
• Empowerment to extend the provision of
the ESI Act to various classes of
establishment, industrial , commercial,
agricultural or otherwise in nature.
• Most of the state governments have
extended the ESI act to certain specific
classes of establishments.
DEFINITIONS…
• “Appropriate government" means, in
respect of establishments under the
control of the Central Government or a
railway administration or a major port or
a mine or oilfield, the Central
Government, and in all other cases, the
State Government.
• "Corporation" means the Employees' State
Insurance Corporation set up under this
Act.
•

• “Dependant" means any of the following relatives of a

deceased insured person, namely,--
Ø a widow, a minor legitimate or adopted son, an unmarried
legitimate or adopted daughter;
Ø a widowed mother;
Ø if wholly dependent on the earnings of the insured person at the
time of his death, a legitimate or adopted son or daughter
who has attained the age of eighteen years and is infirm;
Ø if wholly or in part dependent on the earnings of the insured
person at the time of his death,--
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter
(c) a minor brother or an unmarried sister
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the
child is alive
(g) a paternal grand-parent if no parent of the insured person is
alive.
Bar against recovery of
compensation or damages under
any other law
• An insured person or his dependants shall
not be entitled to receive or recover,
whether from the employer or any other
person, any compensation or damages
under the Workmen’s Compensation act
or Provident Fund act or any other law
for the time being in force.

• If there is any change in the provident fund

act, it doesn’t affect the ESIC Act.
ESTABLISHMENT…
• An apex corporate body called Employees
State Insurance Corporation has been
established for administration of the
scheme of employees’ state insurance.

• The Corporation is a body corporate by the

name of Employees' State Insurance
Corporation having perpetual
succession and a common seal and
shall by the said name sue and be sued.
ADMINISTRATION…
ADMINISTRATION…(contd)
• Headed by the union minister of labour, as
its chairman.

• The director general, appointed by the

central government functions as its chief
executive officer.

• A standing committee constituted from

amongst the members of the
corporation, acts as an executive body.
ADMINISTRATION…(contd)
• The medical benefit council, constituted by
the central government, is statuary body
that advises the corporation on matters
related to effective delivery services to
the beneficiary population.

• Central head quarter at New Delhi,

operates through a network of 26
regional and sub- regional offices
located in various state.
REGISTRATION…
• Declaration Form.
•
• Registration Number.
•
• Temporary Identification Certificate (valid
for 3 months).
•
• Permanent Family Photo Identity Card.
EMPLOYEES’ STATE
INSURANCE FUND
•
• All contributions paid and all other moneys
received on behalf of corporation.
•
• Fund shall be paid into RBI.
•
• Operated by officer.
BENEFITS…
• Sickness benefit :periodical payment in
case of sickness of the insured person.
•
• Maternity benefit :periodical payment to
an insured woman in case of
confinement or miscarriage or sickness
arising out of pregnancy, confinement,
premature birth of child or miscarriage.
•
• Disablement benefit :periodical payment
to an insured person suffering from
disablement as a result of an
employment injury.
BENEFITS…(contd)
• Dependant's benefit :periodical payment
to dependants of an insured person who
dies as a result an employment injury.

• Medical benefit :medical treatment for

and attendance on insured person.
PENALTIES…
• Punishment for false statements :
Imprisonment for a term which may
extend to six months, or with fine not
exceeding two thousand rupees.
• Punishment for failure to pay
contributions, etc. If any person--
(a) fails to pay any contribution which under
this Act he is liable to pay.

(b) deducts or attempts to deduct from the
wages of an employee the whole or any

part of the employer's contribution.
THANK YOU…

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THE EMPLOYEES’ STATE

INSURANCE ACT 1948

• To make provision for certain other

• “Dependant" means any of the following relatives of a

(b) a minor illegitimate son, an unmarried illegitimate daughter

(c) a minor brother or an unmarried sister

(d) a widowed daughter-in-law,

(e) a minor child of a pre-deceased son,

(f) a minor child of a pre-deceased daughter where no parent of the

• If there is any change in the provident fund

• The Corporation is a body corporate by the

• The director general, appointed by the

• A standing committee constituted from

• Central head quarter at New Delhi,

• Medical benefit :medical treatment for

this Act he is liable to pay.

wages of an employee the whole or any

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