E

mployee

S I
tate

nsurance Act 1948

Presented by:

Surya Kant

Employee State Insurance Corporation

In addition to necessities of food, clothing, housing etc., man needs security in times of physical and economic distress consequent upon sickness, disablement etc. The Employees State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees State Insurance Act and is designed to accomplish the task of protecting employees as defined in the Employees State Insurance Act against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.

Employee State Insurance Corporation

Website: http://esic.nic.in "An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. Mission Statement:

To provide for certain benefits to Employees in case of sickness, maternity and employment injury and to make provisions for related matters.

ESI Scheme

ESI Scheme for India is an integrated social security scheme tailored to provide Social Production to workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or Occupational hazard

ESI Scheme

Coverage
Administration

Finance
Contribution

Benefits

ADVANTAGES OF EMPLOYERS

1. Employers are absolved of their liabilities of providing medical facilities to employees and their dependents in kind or in the form of fixed cash allowance, reimbursement of actual expenses, lump sum grant or opting for any other medical insurance policy of limited scope unless it is a contractual obligation of the employer

ADVANTAGES OF EMPLOYERS
2). Employers are exempted from the applicability of the : (a). Maternity Benefit Act (b). Workmen's Compensation Act in respect of employee covered under the ESI Scheme 3). Employers have their disposal, a productivity , well secured workforce, an essential ingredient for better productivity

ADVANTAGES OF EMPLOYERS
4). Employers are absolved of any responsibility

in times of Physical distress of workers such as sickness, employment injury or Physical disablement resulting in loss of wages, as the responsibility of Paying cash benefits shifts to the corporation in respect of insured employees

5). Any sum paid by way of contribution under

the ESI Act is deducted in computing income under the Income Tax Act

Benefits to Employees

ESI Scheme Major Social Security Benefits in Cash and Kind include 1. Medical Benefit for self & Family 2. Sickness Benefit for self 3. Maternity Benefit - for self 4. Disablement Benefit a). Temporary Disablement Benefit for self b). Permanent Disablement Benefit for self 5. Dependents Benefit for dependents in case of death due to employment injury

Benefits to Employees
In addition, the Scheme also provides some other need based benefits to insured workers. These are: I. Funeral Expenses to a person who performs the last rites of Insured person. II. Rehabilitation allowances for self III. Old age Medicare for self and spouse IV. Medical Bonus for insured women and Insured Persons wife.