EMPLOYEES STATE INSURANCE ACT, 1948           

                     

  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:

    1. Small power-using factories employing 10 to 19 persons, and non-power-using factories employing 20 or more persons.
    2. Shops.
    3. Hotels and Restaurants.
    4. Cinemas and Theatres.
    5. Road-motor transport establishments and
    6. 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.



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