Employee State Insurance(part-1)

 

Employee State Insurance



}  The Employee State Insurance Corporation Scheme provides members financial protection in case of an untimely health-related eventuality.

}  The scheme offers medical benefits, disability benefits, maternity benefits, unemployment allowance, etc.

}  In a time, when the industry was still in its nascent stage, the people of India were still heavily dependent on a large assortment of imported goods and services.

}  These goods and services were provided by either the developed or developing parts of the world. So, India being the self-dependent country it is started developing the working class sector so ensure that manufacturing and labor jobs remained in the country.

}  A workforce was developing in the country, dedicated to ensure that industry in India begins to grow and thrive.

}  To ensure that these workers were protected in terms of health and finances, the Parliament implemented the Employees’ State Insurance Act, 1948 (ESI Act).

}  It was the first major legislation that was meant to garner social security for workers.

}  The ESI Act encompasses health related eventualities which workers are exposed to on a daily basis.

}  This could include any type of sickness, temporary or permanent disability, maternity, diseases contracted from a workplace, death due to employment, and any type of injury that results in the loss of wages or earning capacity.



Who is Eligible for ESI?

To come under the vast umbrella of benefits offered by the Employee State Insurance Corporation (ESIC), an individual should meet certain criteria that have been set by the committee. The ESI scheme is applicable to

}  An individual who is employed in a non-seasonal factory that has more than 10 employees. This criteria applies under Section 2 (12) of the Act.

}  With effect from 1 January 2017, the wage limit of an employee is set at Rs.21, 000 per month for him/her to come under the coverage of the ESI scheme.


ESI Coverage:

This scheme has also been made extended to

}   hotels,

}   shops,

}   cinemas and preview theatres,

}  restaurants,

}   newspaper establishments,

}   And road-motor transport undertakings.

This scheme has also been extended to the Private Educational and Medical institutions that have employed 10 or more people. This is applicable in certain states and union territories only.

The ESI scheme has been implemented are-wise throughout the country. This scheme has been implemented in stages in every state in India except Arunachal Pradesh and Manipur. The scheme has also been enacted in all union territories except for Daman and Diu, Dadra and Nagar, and Lakshadweep Islands.

The ESI scheme has been notified in a total of 325 complete districts out of a total of 393 districts. Out of these notified districts, 89 districts implemented the scheme partially.

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