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Employees' State Insurance
From Wikipedia, the free encyclopedia
Employees' State Insurance is a self-financing social security and
health insurance scheme for Indian workers. For all employees
earning 15000 (US$250) or less per month as wages, the employer
contributes 4.75 percentage and employee contributes 1.75
percentage, total share 6.5 percentage. This fund is managed by the
ESI Corporation (ESIC) according to rules and regulations stipulated
there in the ESI Act 1948, which overseas the provision of medical
and cash benefits to the employees and their family through its large
network of branch offices, dispensaries and hospitals throughout
India. ESIC is an autonomous corporation by a statutory creation
under Ministry of Labour and Employment, Government of India. As
it is a legal entity, the corporation can raise loan and take measures
for discharging such loans with previous sanction of Central
Government. And also it can acquire both movable and immovable
property and all incomes from the property shall vest with the
corporations.
[1]
The corporation can setup hospital either independently or in collaboration with state
government or other private entities. But most of the dispensaries and hospitals are run by concerned state
governments.
Contents
1 History
2 Benefits
2.1 Top executives
3 Hospitals
4 References
5 External links
History
In March 1923 before Indian independence B. N. Adarkar economist and later Governor of the Reserve Bank
of India, was appointed by the Government of India to create a health insurance scheme for industrial
workers.
[2]
A year later the report he submitted became the basis for the Employment State Insurance (ESI)
Act of 1948.
[2]
The ESI Act was enacted in India in 1948, but come into reality from 25 February 1952,
established in Kanpur and Delhi. Initially intended for workers working in factories and companies only.
[3]:1
It is
now applicable to all establishments having 10 or more workers including educational institutions, hospitals, etc.,
covering 15.5 million employees working with about 450,000 employers. Total beneficiaries as of 2011-12 are
above 65.5 million.
[4]:13[5]
Benefits
7/12/2014 Employees' State Insurance - Wikipedia, the free encyclopedia
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In ESI scheme, a worker in insurable employment is called insured person (IP). Insured persons and their family
are entitled to different types of benefits. The benefits are broadly classified into two: (1) Medical benefits and
(2) cash benefits.
The employees registered under the scheme are entitled to medical treatment for themselves and their
dependents, unemployment cash benefit in certain contingencies, and maternity benefit in case of women
employees. In case of employment-related disablement or death there is provision for a disablement benefit and
a family pension, respectively.
[3]:67
Funeral Benefit to dependents of Insured Persons/Insured Women. Super
Specialty Treatment through Private Tie Up Network as well as through its own Super Specialty Hospitals
situated throughout India. Also ESI is constructing Medical and PG Medical, Dental Colleges in which it has set
aside certain percentage of seats for children of Insured Persons. Recently ESI taken a decision to make the
'dependent benefit' up to a ceiling of 1200 (US$20) for all eligible dependants of a deceased person. Through
this approximately 86000 dependants got benefit. From time to time ESI relaxes conditions for disbursement of
Sickness Benefit and Super Specialty Treatment.
Outpatient medical facilities are available in 1398 ESI dispensaries, and through 1,678 empanelled private
medical practitioners. Inpatient care is available in 145 ESI Hospitals and 42 Hospital annexes; a total of 19387
beds. In addition, several state government hospitals also have beds for exclusive use of ESI Beneficiaries. Cash
benefits can be availed in any of 783 ESI centres lughout India.
[4]:13,16
Recent years have seen an increasing role of information technology in ESI, with the introduction of Pehchan
smart cards in 'Project Panchdeep', India's largest e-governance project.
[4]:8[6]
In addition to insured workers,
poor families eligible under the Rashtriya Swasthya Bima Yojana can also avail facilities in ESI hospitals and
dispensaries. There are plans to open medical, nursing and paramedical schools in ESI hospitals.
[4]:8[5]
Top executives
Shri Anil Aggarwal, IAS is the Director General, Shri S.K.G. Rahate, IAS is the Financial Commissioner and
Shri B.N. Tripathy, IPS is the Chief Vigilance Officer. Dr. S.R. Chauhan is the Medical Commissioner
Hospitals
ESI has set up numerous hospitals all over the country. Currently more than 20 new hospitals are under
construction, some of the hospitals include ESI Gulbarga, ESI Joka, ESI Chennai etc.. ESI has recently
inaugurated their Medical College in Kollam, Kerala.
[7]
ESI has a budget of 250 million (US$4.2 million) to
300 million (US$5.0 million) per hospital for services and amenities such as modular operation theatres, and
medical gas pipeline systems..
References
1. ^ K.M.Pillai. Labour & Industrial Laws (Fourteenth Edition, 2012 ed.). Allahabad Law Agency. ISBN 81-
89530-71-2.
2. ^
a

b
Social Security and Social Obligation (http://books.google.co.in/books?
id=MoQa3QV5aE0C&lpg=PA207&dq=%22B.%20N.%20Adarkar%22&pg=PA207#v=onepage&q=%22B.%20
N.%20Adarkar%22&f=false) Sociology for Nurses : A Textbook for Nurses and Other Medical Practitioners
By C M Abraham Retrieved 23 August 2013
3. ^
a

b
"Employee State Insurance: For a handful of contribution, a bagful of benefits"