Employee State Insurance Act (1)

7/31/2019 Employee State Insurance Act (1)

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The Employees State Insurance

Act,1948

Preliminary

Object of the act:

To provide for certain benefits to employees in case of

sickness, maternity and injury during employment and tomake provision for certain other matters in relation thereto.

Preliminary

Applicability of the Act:

All factories

Shops employing 20 or more persons.

Such other Govt. specified establishments.


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Act does not apply to:Seasonal factories engaged exclusively in any of the activities

like: cotton ginning, cotton or jute pressing, decoration of ground

nuts, manufacturing coffee, indigo, lac, rubber, sugar, or tea orany manufacturing process incidental to or connected with any of

the

afore said activities, and including factories engaged for a period

not exceeding seven months in a year in blending, packing or

repackaging tea or coffee, or in such other processes as may be

specified by the central govt.

The factories exempted as seasonal from the provisions of the

act.

Act does not apply to:Mines

Railway running sheds

Govt. factories or establishments and Indian naval, military, or air

force

Other Govt. notified exempted establishments


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ACT AUTHORISATION

1. To Promote and measure for health and welfare of

INSURED EMPLOYEES (IE)2. Intervene for the rehabilitation and re-employment

for disabled / injured

3. To appoint inspectors for purposed of the act

4. To determine the amount of contribution and

relevant verification

Standing committee empowered to-

1. Shall administer the affair of the corporation

2. Shall submit the consideration and decision of thecorporations

3. Have discretion on other issues of corporation


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Medical Benefit Council

1. Advise to administration on Medical Benefit,

purpose of grants and related matter2. Have power and duties of INVESTIGATION on

Empanelled Medical practitioner, its treatment and

attendance

3. Perform other duties


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Inspectors- Duties- Powers

Duties -

1. Inquiring into the correctness in any return ofcontribution

2. Ascertaining Provision of the Act has been complied

3. Other authorized / specified duties by the corporation.

Powers -

1. To collect require and relevant information of employer /contractor or both

2. To enter org / contractor premises at reasonable time

and examined relevant account books and relevant

documents, payment of wages etc.

3. To examine employer, contractor, his agent / servant orIE in factory / office

4. To make copies of extracts from any registrar, account

books and other books of maintenance of org.


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Employer/ Employees Contribution

It is the principle employers responsibility to deposit his own as

well as employees contribution in respect of all employees

including the contract labour, into the E.S.I. Account. Non-

availability of funds cannot be a ground for non-payment of

contributions under the act. There is no provision to waive the

contribution, damages and interest

The employer is required to contribute at the rate of 4.75% of the

wages paid/ payable in respect of every wage period. Theemployees are also required to contribute at the rate of 1.75% of

their wages except when the average daily wages in a wage

period are equal to or less than Rs.40.

The employer should get his factory or establishments registeredwith the E.S.I. Corporation within 15 days after the Act becoming

applicable to it, and obtain the employers Code Number. The

regional officer will allot a code number to the employer, which

must be quoted in all documents and correspondence.


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Benefits available to insured employee:

The purpose of the Employee State Insurance Act is

to provide benefits as detailed in the Act particularly in

section 46, to the insured persons or their

dependants.

The following benefits are provided under section 46.Sickness benefit

Maternity benefit

Disablement benefit

Dependents benefitMedical benefit

Funeral expenses


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Sickness benefit

Every insured employee is entitled to the cash benefit for

the period of sickness certified by a duly appointed medicalpractitioner if the contributions in respect of him were

payable for not less than 78 days in the corresponding

contribution period.

Cash benefit takes the form of periodical payment made to

an insured person which is payable for maximum numbers

of 91 days in any two consecutive benefit periods. The

benefit is not paid for the first two days of sickness which is

treated as the waiting period.

Insured persons suffering from long term diseases likeT.B., leprosy, mental, heart etc. and who have been

continuous employment for two years are entitled to get

sickness benefit period up to 309 days.


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Maternity benefit

A periodical cash benefit is payable to an insured

woman employee, in cash of confinement,

miscarriage, medical termination of pregnancy,

premature birth of a child or sickness arising from

pregnancy etc.If the contributions in respect of her were payable for

at least 70days in the two immediately preceding

contribution periods

The benefit is payable of twice the standard benefitrate or Rs.20, whichever is higher for all days on

which she does not work during the prescribed period.


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Disablement benefit

It is payable to an employee who is injured in thecourse of his employment and is permanently or

temporarily disabled or contacts any occupational

disease.

A person who sustains temporary disablement for notless 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.


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Dependents benefitIf 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 benefitAn insured person or a member of his family whose

condition requires medical treatment and attendance

entitled to receive medical benefit.

Rs.250 on account of confinement expenses shall be paidto an insured person or his wife if confinement occurs at a

place where necessary medical facilities under E.S.i.C.

schemes are not available.

Employer not to dismiss or punish employee during period

of sickness- section73.


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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.


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Adjudication of dispute & claims

Employees Insurance Court

Institutions of proceedings, etc.

Powers of employees Insurance CourtReference to High Court

Appeal

Stay of payment during pending of appeal


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Offences :

Offences If any person - Fails to pay any contribution

payable by him under the Act; or Deducts from the

wages of an employee the employer's contributions ;or Fails to submit any return required by the

regulations, or makes a false return. He would be

punished with imprisonment upto 1 year or with fine

upto Rs. 4000/- or with both

Employee State Insurance Act (1)

Documents

Transcript of Employee State Insurance Act (1)