ASSIGNMENT

LABOUR LAW-ADVISORY COMMITTEE

UNDER EMPLOYEES STATE INSURANCE ACT

SUBMITTED BY-PRASHANS
ROLL NO -27
T.Y. B.B.A. LL.B.(HONS.)
INTRODUCTION

The Employees’ State Insurance Act and the scheme framed there

under constitute an important social security programme and protection to

industrial workers and their families who are exposed to the risks of sickness,

employment injury and occupational diseases and in the case of female employees

to maternity.

The promulgation of Employees’ State Insurance Act, 1948(ESI Act), by

the Indian Parliament is the first major legislation on Social Security for workers

in the independent India. It is a time when the industry was still in a budding stage

and the country was heavily dependent on an assortment of imported goods from

the developed or fast developing countries. The deployment of manpower in

manufacturing processes was limited to a few selected industries such as jute,

textile, chemicals and the like. The legislation on creation and development of a

fool- proof multi-dimensional Social Security system, when the country’s

economy was in a very fledgling state was obviously a remarkable gesture towards

the socio economic improvement of a workface though limited in number and

geographic distribution. India, notwithstanding, thus, took the lead in providing

organized social protection to the working class through statutory provisions.

THE STANDING COMMITTEE

The Standing Committee is constituted with three members representing

central and state governments and three elected from among employers and

employees and others one each from paramedical professionals. Director General,

ESI Corporation is also an ex-officio member of the Standing Committee. The

Committee holds its quarterly meetings. The Standing Committee is vested with
powers to administer the affairs of the Corporation, exercise any of the powers and

perform any functions of the Corporation subject to the overall control and

supervision of the Corporation. Standing Committee is also empowered to

constitute any non-statutory sub-committees for specific purposes as the need be.

Powers of the Standing Committee

Subject to the general superintendence and control of the Corporation the

Standing Committee shall administer the affairs of the Corporation and may

exercise any of the powers and perform any of the functions of the Corporation.

The Standing Committee shall submit for the consideration and decision of the

Corporation all such cases and matters as may be specified in the regulations made

in this behalf. The Standing Committee may in its discretion submit any other case

or matter for the decision of the Corporation.

THE MEDICAL BENEFIT COUNCIL

Medical Benefit Council is an advisory body on matters related to the

administration of medical benefit under the ESI Scheme. The council is

constituted by the Central Govt. for a specific term and consists of:-

1. Director General, Central Health Services(ex-officio Chairman)

2. Deputy Director General/Addl. Director General, Central Health Services.

3. One member each representing respective State Govts.

4. Three members each representing employees, employers and the medical

profession.

5. Medical Commissioner, ESI Corporation(ex-officio member)

The ESI Act empowers the Medical Benefit Council to advise the Corporation

on matters related to developments and improvements in the medical service delivery system. The
constitution of the Corporation, Standing Committee and the

Medical Benefit Council are dealt with in Section 4, 8 and 10 of the ESI Act, 1948
respectively. Powers of the Standing Committee and duties of the MBC are given

under Section 18 and 22 respectively. Duties of Medical Benefit Council

The Medical Benefit Council shall -

a) Advise the Corporation and the Standing Committee on matters relating to the

administration of medical benefit the certification for purposes of the grant of

benefits and other connected matters;

(b) Have such powers and duties of investigation as may be prescribed in relation

to complaints against medical practitioners in connection with medical treatment

and attendance; and

(c) Perform such other duties in connection with medical treatment and attendance

as may be specified in the regulations.

COVERAGE

The ESI Act 1948 enacted on 19th April 1948 provides certain benefits to

the employees in case of sickness, maternity and employment injury and to make

provisions for certain other matters in relation thereto. The ESI Act 1948 in the

first instance applies to factories using power in the manufacturing process and employing 10 or more
persons and non-power using factories or establishments

employing 20 or more persons for wages. The provisions of the Act are being

implemented area wise by stages. The Act contains an enabling provision under

which the Appropriate Government is empowered to extend the provision of the

Act to other classes of establishments Industrial, Commercial and Agricultural or

otherwise.

EMPLOYEES’ STATE INSURANCE CORPORATION – A

NATIONAL VIEW

The Employees’ State Insurance scheme was inaugurated on 24th February,

1952 in the industrial town of Kanpur and Delhi and was gradually followed in the
rest of the country subsequently. The scheme was an experimental and ambitious

one. Originally it envisaged to cover about 25lakhs of industrial workers. In 1978

the scheme was reported to be in operation at 410 centres throughout the country.

About 55 lakhs employee were already covered as per the report. Including those

members of families of employees the total number of beneficiaries under the

scheme was said to have gone to 501.97 lakhs in 1978. It was first of its kind in

south East Asia.

The Employees’ State Insurance Scheme is a unique multidimensional self

financing social security scheme in which every contributor is a benefactor and a

beneficiary. This integrated scheme of health insurance provides comprehensive

medical cover and cash benefits in the contingencies of sickness, maternity,

disablement and death due to employment injury to the insured persons and their

dependants. The ESI Act, 1948 provide the conceptual breakthrough in the

development of a social security scheme that has over the years metamorphosed

into the country’s largest worker welfare programme in terms of geographical

reach, demographic coverage and multi-faceted services. The ESI Act is

applicable to over two lakh industrial units, across the length and breadth of the

country. In the ESI Scheme employer is the only link between the administrative

machinery and its service system on one hand and the workers on the other hand.