THE EMPLOYEES STATE INSURANCE ACT, 1948
The ESI Act passed in 1948 (amended in 1970, 1984 and 1989) is an
important measure of social security and health insurance in this country. It provides for
certain cash and medical benefits to industrial employees in case of sickness, maternity
and employment injury.
SCOPE:
The Act extends to the whole of India. The ESI Act of 1948 covered all
power-using factories other than seasonal factories wherein 20 or more persons were
employed (excluding mines, railways and defense establishments). The provisions of the ESI
(Amendment ) Act of 1975 were extended to the following new classes of establishments:
- Small power-using factories employing 10 to 19 persons, and non-power-using factories
employing 20 or more persons.
- Shops.
- Hotels and Restaurants.
- Cinemas and Theatres.
- Road-motor transport establishments and
- Newspaper establishments.
With effect from 1.1.97 the Act covers all employees – manual,
clerical, supervisory and technical getting upto Rs.6500/- per month. The provisions of
the Act can be extended to any other agricultural or commercial establishment.
ADMINISTRATION:
The Act is a central Act having two wings:
I. Enforcement and providing non-medical services of the Act –
Central Government – Department of Labour –
Employees State Insurance Corporation
II. Extending the Medical Services to Insured Persons and family
members
State Government – Department of Labour –
Employees State Insurance Scheme (Medical.) Services.
