24-11-2012, 01:52 PM
The Employees State Insurance Act,1948
ESI-Act-1948.ppt (Size: 435.5 KB / Downloads: 46)
The Beginning
The Employee State Insurance act was promulgated by the Parliament of India in the year 1948.
To begin with this, ESIC scheme was initially launched on 2 February 1952 at just two industrial centers in the country namely Kanpur and Delhi with a total coverage of about 1.20 lakh workers.
It Country’s largest medical infrastructural facility.
Encompasses certain health related eventualities that employees are generally exposed to.
Preliminary
Object of the act:
To provide for certain benefits to employees in case of sickness, maternity and injury during employment and to make provision for certain other matters in relation thereto.
Applicability of the Act
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; 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.
Applicability of the Act
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.7500/- per month (with effect from 1.4.2004).
ACT AUTHORISATION
1. To Promote and measure for health and welfare of INSURED EMPLOYEES (IE)
2. Intervene for the rehabilitation and re-employment for disabled / injured
3. To appoint inspectors for purposed of the act
4. To determine the amount of contribution and relevant verification
Employer/ Employee’s Contribution
It is the principle employer’s responsibility to deposit his own as well as employee’s contribution in respect of all employees including the contract labor, into the E.S.I. Account. Non-availability of funds cannot be a ground for non-payment of contributions under the act. There is no provision to waive the contribution, damages and interest
The employer is required to contribute at the rate of 4.75% of the wages paid/ payable in respect of every wage period. The employees are also required to contribute at the rate of 1.25% of their wages except when the “average daily wages in a wage period” are equal to or less than Rs.100.
Sickness benefit (Cash)
Every insured employee is entitled to the cash benefit for the period of sickness certified by a duly appointed medical practitioner if the contributions in respect of him were payable for not less than 78 days in the corresponding contribution period.
Cash benefit takes the form of periodical payment made to an insured person which is payable for maximum numbers of 91 days in any two consecutive benefit periods of sickness benefit at 70% of average daily wages. The benefit is not paid for the first two days of sickness which is treated as the waiting period.
Insured persons suffering from long term diseases like T.B., leprosy, mental, heart etc. and who have been continuous employment for two years are entitled to get sickness benefit period up to 309 days.
Funeral Expenses
If an insured employee dies, the eldest serving member of his family is entitled to reimbursement of such expenditure subject to maximum of Rs. 10,000.
The claim for the funeral expenses should be submitted with prescribed document and form within three months of the death of the insured employee.