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7/31/2019 Employee State Insurance Act (1)
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The Employees State Insurance
Act,1948
Preliminary
Object of the act:
To provide for certain benefits to employees in case of
sickness, maternity and injury during employment and tomake provision for certain other matters in relation thereto.
Preliminary
Applicability of the Act:
All factories
Shops employing 20 or more persons.
Such other Govt. specified establishments.
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Act does not apply to:Seasonal factories engaged exclusively in any of the activities
like: cotton ginning, cotton or jute pressing, decoration of ground
nuts, manufacturing coffee, indigo, lac, rubber, sugar, or tea orany manufacturing process incidental to or connected with any of
the
afore said activities, and including factories engaged for a period
not exceeding seven months in a year in blending, packing or
repackaging tea or coffee, or in such other processes as may be
specified by the central govt.
The factories exempted as seasonal from the provisions of the
act.
Act does not apply to:Mines
Railway running sheds
Govt. factories or establishments and Indian naval, military, or air
force
Other Govt. notified exempted establishments
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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
Standing committee empowered to-
1. Shall administer the affair of the corporation
2. Shall submit the consideration and decision of thecorporations
3. Have discretion on other issues of corporation
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Medical Benefit Council
1. Advise to administration on Medical Benefit,
purpose of grants and related matter2. Have power and duties of INVESTIGATION on
Empanelled Medical practitioner, its treatment and
attendance
3. Perform other duties
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Inspectors- Duties- Powers
Duties -
1. Inquiring into the correctness in any return ofcontribution
2. Ascertaining Provision of the Act has been complied
3. Other authorized / specified duties by the corporation.
Powers -
1. To collect require and relevant information of employer /contractor or both
2. To enter org / contractor premises at reasonable time
and examined relevant account books and relevant
documents, payment of wages etc.
3. To examine employer, contractor, his agent / servant orIE in factory / office
4. To make copies of extracts from any registrar, account
books and other books of maintenance of org.
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Employer/ Employees Contribution
It is the principle employers responsibility to deposit his own as
well as employees contribution in respect of all employees
including the contract labour, 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. Theemployees are also required to contribute at the rate of 1.75% of
their wages except when the average daily wages in a wage
period are equal to or less than Rs.40.
The employer should get his factory or establishments registeredwith the E.S.I. Corporation within 15 days after the Act becoming
applicable to it, and obtain the employers Code Number. The
regional officer will allot a code number to the employer, which
must be quoted in all documents and correspondence.
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Benefits available to insured employee:
The purpose of the Employee State Insurance Act is
to provide benefits as detailed in the Act particularly in
section 46, to the insured persons or their
dependants.
The following benefits are provided under section 46.Sickness benefit
Maternity benefit
Disablement benefit
Dependents benefitMedical benefit
Funeral expenses
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Sickness benefit
Every insured employee is entitled to the cash benefit for
the period of sickness certified by a duly appointed medicalpractitioner 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. 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 likeT.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.
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Maternity benefit
A periodical cash benefit is payable to an insured
woman employee, in cash of confinement,
miscarriage, medical termination of pregnancy,
premature birth of a child or sickness arising from
pregnancy etc.If the contributions in respect of her were payable for
at least 70days in the two immediately preceding
contribution periods
The benefit is payable of twice the standard benefitrate or Rs.20, whichever is higher for all days on
which she does not work during the prescribed period.
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Disablement benefit
It is payable to an employee who is injured in thecourse of his employment and is permanently or
temporarily disabled or contacts any occupational
disease.
A person who sustains temporary disablement for notless than 3days(excluding the day of accident) shall
be entitled to periodical payment as may be
prescribed by the central govt.
The benefit of temporary disablement is, however, not
payable for any day on which the employee works,remains on lease, holiday or strike in respect of which
he receives wages.
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Dependents benefitIf any employee dies during any period for which he is
entitled to a cash benefit, the amount of such benefit shall
be payable up to & including the day of his death.The amount of benefit shall be paid to the nominee or,
where there is no nomination, to the heir or legal
representative of the deceased employee.
Medical benefitAn insured person or a member of his family whose
condition requires medical treatment and attendance
entitled to receive medical benefit.
Rs.250 on account of confinement expenses shall be paidto an insured person or his wife if confinement occurs at a
place where necessary medical facilities under E.S.i.C.
schemes are not available.
Employer not to dismiss or punish employee during period
of sickness- section73.
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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.2500(W.E.F. December,2000)
The claim for the funeral expenses should be
submitted with prescribed document and form within
three months of the death of the insured employee.
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Adjudication of dispute & claims
Employees Insurance Court
Institutions of proceedings, etc.
Powers of employees Insurance CourtReference to High Court
Appeal
Stay of payment during pending of appeal
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Offences :
Offences If any person - Fails to pay any contribution
payable by him under the Act; or Deducts from the
wages of an employee the employer's contributions ;or Fails to submit any return required by the
regulations, or makes a false return. He would be
punished with imprisonment upto 1 year or with fine
upto Rs. 4000/- or with both