Employee State Insurance
Employees’ State Insurance (ESI) is self-funding social security and health insurance program for Indian workers. The Employees’ State Insurance Corporation manages the fund in accordance with the ESI Act of 1948’s rules and regulations. Employees’ State Insurance is an Autonomous Body and Statutory body under the Ministry of Labor and Employment, Government of India.
The primary objective by the govt. of India to launch the ESI scheme is to cover workers from certain health-related contingencies like permanent or temporary disablement, sickness, death because of employment injury or occupational disease, which impacts the earning capacity of the worker or leads to loss of income. This scheme enables workers to negate the financial burden because of such unfortunate eventualities. The scheme also offers maternity benefits to the beneficiaries.
ESI scheme protects them with medical care for the insured and their dependents and offers a selection of cash benefits during the loss of wages or disablement. Also, the scheme offers a pension mentioned as a dependent benefit to the relations of the insured just in case of death or injury because of occupational hazards while at work.
History
In March 1943, the govt. of India appointed Prof. B.P.Adarkar to make a report on the insurance scheme for industrial workers. The report became the idea for the utilization State Insurance (ESI) Act of 1948. The promulgation of the Employees’ State Insurance Act, 1948 is based on a social welfare scheme that may protect the interest of workers in contingencies like maternity, sickness, death thanks to employment injury, temporary or permanent physical disablement, leading to loss of wages or earning capacity. The Act also guarantees best medical help to workers and their respective immediate dependents. On 24 February 1952, the Scheme thereafter was first implemented at Kanpur and Delhi. The advantages provided to the workers under the Act also are in conformity with ILO conventions. The act was initially intended for factory workers. Later, the act became applicable to the establishments having at least workers. The entire beneficiaries are 82.8 million on 31 March 2016,
Employee State Insurance (ESI) Act
ESI act established Employees’ State Insurance Corporation (ESIC) is an autonomous corporation under the Ministry of Labor and Employment, Government of India. The corporation can raise loans and take measures for discharging such loans including the prior sanction of the central government as it might be a legal entity and it can acquire both movable and immovable property and every one income from the property shall vest with the corporation. The corporation can found out hospitals either independently or together with government or other private entities, but most of the dispensaries and hospitals are travel by concerned state governments.
ESI Benefits
- Medical benefit
- Sickness benefit
- Maternity benefit
- Disablement benefit
- Dependants benefit
- Funeral expenses
- Rehabilitation allowance
For all employees earning ₹21,000 (US$290) or less per month as wages, the employer contributes 3.25% and therefore the employee contributes 0.75%, total share 4%. ESI Corporation (ESIC) managed this fund inconsistent with rules and regulations stipulated there within the ESI Act 1948, which oversees the supply of medical and cash benefits to the workers and their family. ESI scheme may be a sort of Social Security scheme for workers within the organized sector.
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 just in case of girls employees. Just in case of employment-related disablement or death, there’s provision for a disablement benefit and a family pension respectively. 67 Outpatient medical facilities are available in 1,678 registered medical practitioners and 1418 ESI dispensaries. Inpatient care is out there in 145 ESI hospitals and 42 hospital annexes with a complete of 19,387 beds. Additionally, several government hospitals even have beds for the exclusive use of ESI Beneficiaries. Cash benefits are often availed in any of 830 ESI centers throughout India.
Recent years have seen an increasing role of data technology in ESI, with the introduction of Pehchan smart cards as a neighborhood of Project Panchdeep. Additionally insured workers and poor families who are eligible under the Rashtriya Swasthya Bima Yojana can avail facilities in ESI hospitals and dispensaries.
What is covered Under the Employees’ State Insurance Scheme?
Initially, the ESI Scheme (ESIS) was implemented in Kanpur and Delhi in 1952 which were the 2 major industrial centers at that point. However, the scheme found itself being adopted across the country with the economic revolution learning pace. With the rise in industrialization over the years, the ESIS as of 31 March 2019, has been implemented in additional than 34 states and Union Territories.
Unemployment Allowance is provided for 50% of wage for a maximum of two years. ESI Hospitals/Dispensaries provide medical care for the individual and his family throughout the time he is receiving unemployment benefits. Vocational training is provided to upgrade skills; ESIC pays for the fees and travel allowance.
What Is Not Covered Under Employees State Insurance Scheme?
The ESIC scheme currently doesn’t cover workers or employees earning quite Rs.21, 000 per month and within the case of persons with a disability, the utmost wage is capped at Rs.25, 000 per month. Also, in Maharashtra and Chandigarh, the present threshold for coverage remains 20 employees and not 10 employees within the case of other states or UTs.
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