What is the full form of ESIC?

Introduction

ESIC or Employees State Insurance Corporation, is the body that comes under the Ministry of Labour and Employment in the Government Of India. It is a legislative body that abides by the rule of the ESI Act of 1948.

The primary objective of the setting up of this organization is to help the employees in the event of a sudden injury, illness, or accident, and they cover the expenses on behalf of the employee; this benefit is for every insured employee, and its head office is located in New Delhi.

History of ESIC

The History of ESIC or Employees State Insurance Corporation goes back to the year 1943 when the Indian Government appointed Professor B.P.Adrakar to make necessary inquiries and submit a report about the health insurance of the workers working in the industrial sector.

For the betterment of the workers, the ESI Act was passed in 1948, keeping in mind the needs and requirements and safeguarding the interests in the event of any sickness, accident, disablement, or death during employment. This law protects them in this event by paying their wages.

The medical insurance of these employees was the primary condition of the law. After the law was enacted, the Government formed the Employees State Insurance Corporation to oversee the implementation of the Act in Kanpur and Delhi. This scheme was first introduced on January 24th, 1952.

ESIC Benefits

The ESIC or Employee State Insurance Corporation offers various benefits to its insured employees, which are as follows −

Medical Benefits

The day the employment commences, this benefit can be availed by the employees; the medical benefits are also available for retired or disabled permanently, and even the spouse is considered for the benefit, and one hundred and twenty rupees, a premium token amount, is paid annually.

Maternity Benefits

For women employees, maternity leave ensures a hundred per cent of their wages for twenty-six weeks from the time of labour, and it can be extended for one month after some consideration. If there is a miscarriage, then the benefit is for six weeks and in the case of adoption it is twelve weeks.

Disablement Benefits

The disablement benefits cover financially permanent, and temporary disablement of the insured employees. 90% of the wages of the employees are paid if the disability is caused during employment. If the employee is disabled permanently, they can also avail 90% of the wages for their lifetime. The dependent is liable for the same amount if the employee dies.

Sickness Benefits

If the employee is sick, they can avail of this benefit. 70% of the wages are dispersed for ninety-one days in a year, but there is a prerequisite for the employee to work for seventy-eight days in the half-yearly contribution. Under this, there is one more benefit for malignant and long-term diseases. In this case, up to 80% of the salary is given to the employee.

Unemployment Benefits

If the employee suffers an injury during employment that has rendered them unemployed and if they have worked for three years, they are liable for this benefit, which gives them medical assistance and up to 50% of their wages for two years. Vocational training and a travelling allowance are also provided.

Other Benefits

Every insured employee is liable for these benefits, that is, funeral benefits for up to fifteen thousand rupees to the dependent. In a case of confinement where medical expenses cannot be covered, five thousand rupees is provided. Vocational Rehabilitation for permanently disabled employees also comes under this benefit, and there is a medical benefit for old age retired employees.

ESIC Eligibility

According to the data, the ESIC or Employees State Insurance Corporation has implemented the ESI Employees State Insurance Scheme in more than thirty-four states and union territories, with the number of insured persons reaching 3.49 crores in 2019.

Any organization/ enterprise having more than ten employees, and in states like Maharashtra and Chandigarh, having more than twenty employees, can register itself with the ESIC.

Previously any employee who earned more than fifteen thousand rupees was not eligible for the insurance scheme. Still, effective till January 2017, the amount was raised to twenty-one thousand rupees for the able-bodied and the disabled. It is up to twenty-five thousand per month.

The employees contribute less than 2% of their income towards the scheme. In comparison, the employer contributes 4.75%, and some workers whose daily wage is fifty rupees are exempted from contributing to the fund. These rates are not fixed. The Government of India revises them occasionally.

The organization/ enterprise is registered online through the portal designated by the Government of India. After filling out the form and submitting the necessary documentation, the organization/ enterprise is registered and can avail of the ESI Employee’s State Insurance Scheme benefit.

Conclusion

The ESIC or Employees State Insurance Corporation is the statutory body that oversees the proper implementation of the ESI or Employee State Insurance Act for all registered and insured employees. It offers various benefits and protects the interests of exploited employees. It gives them medical and financial benefits.

This body ensures the safe and proper allocation of benefits for its beneficiaries and assists the insured employees in times of need. This was a great step taken to improve the labour class in India.

FAQs

Q1.How many regional offices of the ESIC are there?

Ans: The ESIC Employee State Insurance Corporation has twenty-six regional offices across India.

Q2.What is the total number of beneficiaries in Employee State Insurance Corporation?

Ans: The total number of beneficiaries in the Employee State Insurance Corporation is 82.8 Million Indians.

Q3. What is the contribution rate for the employees to avail of the benefits of the ESI Act?

Ans: The contribution rate was reduced for the employees to avail of the benefits of the ESI or Employees State Insurance Act. It decreased from 6.5% to 4 %.