very easy to learn and explain

1. STD: FYBMS
SUB: INDUSTRIAL LAW

2. TOPIC
THE EMPLOYEE STATE INSURANCE
ACT 1948

3. DEFINITION
 Employee: Employee refers to any person employed on wages in
connection to with the work of factory establishment to which the act
applies.
 Includes technical manual, clerical and supervisory functionary
employees or technical and non-technical
 Covers admin staff .
 Does not include railways, defence, and mines.

4. INTRODUCTION
 Employ The ESI Act, 1948 - Social welfare legislation
with object of providing benefits to employees for
sickness, maternity and employment of factories or
establishments, but drawing wages only up to Rs 6,500
per month entitled to health insurance cover under ESI
act.

5.  HISTROY
 Pioneering measure in social insurance in India.
 Health insurance first discussed in 1927 by Indian legislature.
 Originally called “workmen’s state insurance bill” 1946.
 Came into force on 19th April 1948.
The employees’ state insurance act – 1948

6. Registration
Registration of a factory with the employees’ state
insurance corporation (esi) is a statutory responsibility
of the employer under section 2-a and 10-b.
Declaration of registration in form 01 to be furnished to
the appropriate regional office within 15 days of the act
becoming applicable.
Employer should get the declaration form filled in by
every employee covered under the scheme.

7. BENEFITS
SICKNESS
AND
EXTENDED
SICKNESS
BENEFIT
MATERNITY
BENEFIT
DISABLEMENT
BENEFIT
DEPENDENT
BENEFITS
MEDICAL
BENEFIT
FUNERAL
BENEFIT

8. 1. SICKNESS AND EXTENDED
SICKNESS BENEFIT’S
 Sickness benefit represent cash payment made to insurance person during period of
sickness occurring in benefit period.
 QUALIFING CONDITION
 To become eligible insurance person should paid contribution for not less than 78
days .
 Person has to wait for at least 9 month to get sickness benefit.
 Insured persons suffering from Tb, leprosy, mental and malignant diseases or other
specified long term diseases are entitled to extended benefits at higher rates, provided
he has been continually employed for at least two years.

9. 2. MATERNITY BENEFIT’S
Implies cash payment to an insured woman in case of confinement or miscarriage or
sickness arising out of pregnancy or premature birth.
Woman should have contributed for minimum 70 days in the preceding two
consecutive contribution periods.
Daily rate of benefits double the standard sickness benefit rate, i.e. Full wages.
Normally payable for max 12 weeks for confinement and 6 weeks for miscarriage or
medical termination of pregnancy.
Payable even in the event of the death of the woman.

10. 3. DISABLEMENT BENEFIT’S
 In case of temporary disability arising out of employment injury, this
benefit is admissarable for the entire period certified by an
insurance medical officer/practitioner for which the insured person
does not work for wages.
 Rate payable not less than 70% of daily wages; minimum 3 days of
incapacity required.
 In case injury results in permanent, partial or total loss of earning
capacity, periodical payments to be made for life. One-time lumpsum
is permissible in certain cases

11. 4. DEPENDENT’S BENEFIT’S
Periodical pension paid to dependants of deceased where death occurs out of employment
injury or disease.
Widows: 3/5th of benefit rate for life or until remarriage
Children: 2/5th of benefit rate until 18
Total amount distributed not to exceed ceiling of disablement benefit.
Benefit not paid to married daughters.
In case there is no widow or child, benefit can be paid to other dependants including
parents.
Amount paid is reviewed and increases granted from time to time to compensate for erosion
in real value and cost of living.

12. 5. MEDICAL BENEFIT’S
In-patient treatment
Free supply of drugs and dressing
X-ray and laboratory investigations
Vaccination and preventive innoculations
Ante-natal, confinement, post-natal care
Ambulance service or conveyance charges
Free diet during admission in hospitals
Medical certification

13. 6. FUNERAL BENEFIT’S
Funeral expenses are in the nature of a lump sum payment up to a
maximum of rs.2500 made to defray the expenditure of the funeral of
deceased insured person.
The amount is paid either to the eldest surviving member of the family
or, in his absence, to the person who actually incurs the expenditure on
the funeral.
ALL BENEFITS UNDER THE ESI SCHEME ARE PAID IN CASH
EXCEPT MEDICAL BENEFIT, WHICH IS GIVEN IN KIND.

14. PROTECTION
 An employer cannot dismiss or punish an employee under treatment for sickness of in
receipt of any benefit or absent from work due to illness. Any notice of dismissal, discharge
or reduction is invalid. However, the employer can discharge or punish the employee if:
He has received temporary disablement benefit and remained absent for 6 months or more
Is under treatment for sickness other than tb or arising out of pregnancy and remained
absent for 6 months or more
Is under medical treatment for TB or a malignant disease and has remained absent
continuously for 18 months or more.

15. CONCLUSION

16. THANK YOU…….