ASSIGNMENT ON EMPLOYEE STATE INSURANCE

SUBMITTED TO: Mr. ASHUTOSH GUPTA

SUBMITTED BY: SUMEER MBA – 3rd 10-156

Administration There is also a Medical Benefit Council to advise the Corporation on matters connected with the provision of Medical Benefit. the Central Government. Nagpur. the Corporation has 23 Regional Offices and 12 sub-Regional Offices at Vijayawada. Hubli. A Standing Committee constituted from among the members of the Corporation acts as the Executive Body for the administration of the Scheme. Besides the Hqrs. Surat. ADMINISTRATION: The Employees’ State Insurance Scheme is administered by a Corporate body called the Employees’ State Insurance Corporation (ESIC).Office in New Delhi. Varanasi and Barrack pore and 844 Local Offices and Cash offices all over the country for the administration of the Scheme. Pune. medical profession and the Parliament. in the organized sector. which has members representing employers. such as. Noida. . Madurai. Tirunelveli. immediate dependent or family. employees. maternity and death or disablement due to an employment injury or occupational hazard. in contingencies. sickness. Coimbatore.EMPLOYEE STATE INSURANCE CORPORATION: INTRODUCTION: Employees' State Insurance Corporation of India is an integrated social security system tailored to provide social protection to workers. The Director General who is the Chief Executive of the Corporation is also exofficio member of the Corporation and of its Standing Committee. State Governments. Vadodara.

Super speciality facilities are provided to the beneficiaries through recognized advanced medical institutions empanelled for the purpose on referral basis.  MATERNITY BENEFITS: Maternity benefit consists of periodical cash payments in case of confinement or miscarriage or sickness arising out of pregnancy.ESIC BENEFITS:  MEDICAL BENEFITS: The Scheme provides full range of medical care to Insured person and family. The Corporation has set up a revolving fund in most of the States to ensure smooth flow of funds for superspeciality treatment of ESI beneficiaries. . confinement. to an insured woman as certified by a duly appointed medical officer or mid wife. through a network of ESI Dispensaries & Panel clinics.  SICKNESS BENEFITS: Sickness Benefit represents periodical cash payments made to an IP during the period of certified sickness occurring in a benefit period when IP requires medical treatment and attendance with abstention from work on medical grounds. There is a waiting period of 2 days which is waived if the insured person is certified sick within 15 days of the spell for which sickness benefit was last paid. diagnostic centers and ESI Hospitals etc. full and comprehensive medical care under the Scheme. premature birth of child or miscarriage. The sickness benefit rate is roughly equivalent to 50% of the average daily wages of the insured person. The maximum duration of Sickness Benefit is 91 days in two consecutive benefit periods. All Insured Persons and members of their family are entitled to free. The package covers all aspects of health care from primary to super speciality facilities.

2009) made to defray the expenditure . If the employment injury results in partial or total/permanent disability. till infirmity lasts c) Legitimate or adopted unmarried daughter until age 18 or until marriage. No contributory conditions are prescribed for this benefit. DISABLEMENT BENEFITS: Disablement benefit is admissible for disablement caused by employment injury. In the absence of any widow or legitimate child.(with effect from 01. While the rate of temporary disablement benefit is 70% or a little more of the wages and that of permanent disablement benefit is proportionate to the loss of earning capacity caused by the injury.  DEPENDANTS BENEFITS: Dependants benefit is a monthly pension payable to the eligible dependants of an insured person who dies as a result of an employment injury or occupational diseases.  FUNERAL EXPENSE BENEFITS: Funeral expenses are in the nature of a lump sum payment upto a maximum of Rs. till infirmity lasts and she continues to be unmarried. At the first instance. to any other male dependent until age 18 or to an unmarried or widowed female dependent until age 18. whichever is earlier. temporary disablement benefit is payable as long as the temporary disability lasts.09. permanent disablement benefit is payable till the death of the insured person. or if infirm. Beneficiaries and duration of benefit: a) Widow/ widows during life or until remarriage b) Legitimate or adopted son until age 18 or if legitimate son is infirm. the benefit is payable to a parent or grandparent for life. 5000/.

10.10. in his absence. road motor transport undertakings and newspaper establishment employing 20 or more persons. Under Section 1(5) of the Act. Coverage COVERAGE UNDER THE ESI ACT. hotels. 1948 The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons. AREAS COVERED The ESI Scheme is being implemented area-wise by stages. restaurants. The Scheme has already been implemented in different areas in the following States/Union Territories . to the person who actually incurs the expenditure on the funeral.2006). is Rs. APPLICABILITY: It is applicable to:  Non-seasonal factories using power in and employing ten or more persons. The existing wage-limit for coverage under the Act. the Scheme has been extended to shops. 7500/.  Non-seasonal and non-power using factories and establishments employing 20 or more persons  Employees of the factories and establishments in receipt of wages not exceeding Rs.on the funeral of deceased insured person.000/. but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.per month (with effect from 1. cinemas including preview theatre.per month are covered under this act. The amount is paid either to the eldest surviving member of the family or.

Currently.S.97) is 1.STATES All the States except Nagaland.1.are exempted from payment of contribution. the employee’s contribution rate (w. Contribution period Corresponding Cash Benefit period 1st April to 30th Sept. . The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. Scheme being contributory in nature.75% of the wages paid/payable in respect of the employees in every wage period. 1st January of the following year to 30th June. 1. Sikkim. Contribution Period and Benefit Period There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.e. Chandigarh and Pondicherry Contribution E.75% of the wages and that of employer’s is 4. Employees in receipt of a daily average wage upto Rs. UNION TERRITORIES Delhi. Tripura.50/. Employers will however contribute their own share in respect of these employees.I. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf. Collection of Contribution An employer is liable to pay his contribution in respect of every employee and deduct employee’s contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The rates are revised from time to time.f. all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. Manipur. Arunachal Pradesh and Mizoram.

Employee state Insurance playing a vital role in providing such benefits. The employees’ contribution is at the rate of one and threefourth per cent of the wages payable to an employee. to 31st March Finance 1st July to 31st December of the year following The Scheme is mainly financed by contributions from employers and employees. The employers’ contribution is equal to four and three fourth per cent of the wages payable to employees.1st Oct. These benefits help them to survive when they are dependent on others. . Conclusion: Employee state Insurance Corporation provides the benefits which are essential for the working class for their survival in the period of contingency. The State Governments share expenditure on the provision of medical care.