What is the full form of ESI?

Introduction

Employee's State Insurance (ESI) was enacted on January 24th, 1952. It acted as health insurance and followed the rules specified in the ESI Act of 1948. Primarily this law was only for the labourers. Later, it was modified, so employees earning less than 15000 could avail of this insurance.

Employees State Insurance is the health insurance given to Indian employees, and it also has cash and other medical benefits. Employee State Insurance Corporation( ESIC), an autonomous body, is responsible for this scheme, and it is under the Ministry of Labour and Employment, the Government of India.

Benefits of ESI

The benefits that Employees’ State Insurance provides to its receivers are immense. The law acts like social security, and there are up to six benefits any labourers/ employees can avail. They are as follows −

Sickness benefit

As stated by the law, the sickness benefit is that every employee is given a full salary if they are sick and unable to attend work. Still, they must work for 78 days in six months to make themselves liable for this benefit. Any day less than 78 will be excluded from this benefit. In case of malignant and prolonged sickness the employees can avail up to 80% of their wages for two years.

Medical Benefit

The medical benefit is for every employee whenever they join, and it is also extended to the family members; there is no fixed ceiling for the expenses incurred in medical expenditure, and the ESI pays for all the medical facilities available according to the law.

Even retired and disabled employees and their spouses are given compensation of up to 120 rupees premium in a year.

Disablement benefit

Employees who suffer injuries that can cause disablement during employment can avail of this benefit; the disablement can be permanent or temporary. In temporary disablement, the employee can avail ninety per cent of the compensation regardless of their contribution till the disablement continues.

But in the case of permanent disablement, the compensation is zero until the medical department investigates the extent of the disablement and its effect on the earning potential of the employee; the decision is taken after that consideration.

Maternity Benefit

All female employees can avail of the maternity benefit in case of pregnancy or confinement, but they have to contribute seventy days in the preceding year. Confinement is defined as labour after which the child is born, and it also means 26 weeks of pregnancy, whether the child is alive or not. The maternity benefit is granted for three months and can be extended for one month if required. The compensation is the full wages of the employee.

Dependants Benefit

The employees also have dependent benefits which cover their dependents in case of their death, but the employee's death must be during employment; the compensation is ninety percent of the wages, which is made in the form of monthly payments to the dependants.

Other Benefits

Apart from the above benefits, other benefits can be availed, that is, funeral benefits which the dependants can avail of the employees to perform the last rites, which is ten thousand rupees. During old age, employees retiring under VRS are paid some compensation, and employees who have injured themselves are also liable for the benefits. Vocational and physical rehabilitation for permanently disabled employees is also one of the benefits that can be availed.

Eligibility for ESI

The ESIC states that the Employee State's Insurance eligibility is based on the contributions of the workers earning capacity as the fixed portion of the salary, which was twenty-one thousand rupees effective from 2017.

The employees' social benefits are the same regardless of their contributions, and the employer must enlist the eligible employees in the scheme.

The registration can be done online through the government portal, where a detailed form has to be filled out, and then the Employee's State Insurance benefits can be availed.

ESI Scheme Coverage

The Government has extended the coverage of ESI from factories to hotels, shops, road transport businesses, newspapers, educational institutions, and private hospitals with a guarantee that there are more than twenty employees in the undertaking and where the central Government is the appropriate Government. Any organization having more than 10 employees can register with the ESIC Employees State Insurance Corporation and can avail the benefits that are provided in the Employees State Insurance Act.

The ESI Employee's State Insurance scheme coverage is in 611 districts of India in 36 states and Union Territories. According to the data from 2022, the number of insured persons is 3.10 crores, the number of employees is 2.78 crores presently, and the number of employers is 15.94 lakhs.

Conclusion

The ESI Employee's State Insurance is one of the most important Acts made for the employee's benefit, and it can also be availed by the dependants if the employee dies in the employment.

The benefits covered in this Act are made for all the employees, and some considerations are made and can be availed by them. This Scheme has assisted many employees in their dire need, and this is a great gesture by the government to show their gratitude towards the working class in Indian Society.

FAQs

Q1. Where was the first ESI scheme implemented?

Ans: The first ESI scheme was implemented on February 24th, 1952, in Kanpur.

Q2. What does Section 46 of the ESI ACT state?

Ans: Section 46 of the ESI Act states that an employee must be injured during employment to avail of the benefits.

Q3. What is the total number of beneficiaries in the ESI Employee’s State Insurance in 2022?

Ans: The Total number of beneficiaries in the ESI Employee's State Insurance in 2022 is 12.04 crores.