ESI Act, its history and the benefits.pptx

ESI Act

1. The Employees State Insurance Act was passed in 1948. It was amended in 1975, 1984, 1989, 2010. It is an important measure of social security and health insurance in this country.

2. Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons . The State government has extended the coverage under Section 1(5) of the Act to: Shops Hotel Restaurants Cinema theatres Road-motor transport undertakings Newspaper establishments Private medical institutions Educational institutions Contract and casual employees of Municipal Corporation or Municipal Bodies employing 10 or more persons in the certain States/UTs, where state government is the appropriate government.

3. The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.

4. The section 46 of the Act envisages 6 social security benefits : ( a) Medical Benefit (b) Sickness Benefit ( SB ) 1 . Extended sickness Benefit ( ESB) 2 . Enhanced Sickness Benefit (c) Maternity Benefit ( MB) (d) Disablement Benefit 1 . Temporary disablement benefit ( TDB) 2 . Permanent disablement benefit ( PDB) (e) Dependant's Benefit ( DB) (f) Funeral Expenses

5. An interesting feature of the ESI Scheme – contributions are related to the paying capacity as a fixed percentage of the workers wages, whereas , they are provided social security benefits according to individual needs without distinction. Cash Benefits are disbursed by the Corporation through its: Local Offices Los Mini Local Offices ( MLOs) Sub Local Offices SLOs) Pay offices * subject to certain contributory conditions.

6. In addition, the scheme also provides some other need based benefits to insured workers , such as: i . Rehabilitation allowance ii. Vocational Rehabilitation iii. Unemployment Allowance (under Rajiv Gandhi Shramik Kalyan Yojana)