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Employees' StateInsuranceAct, 1948
TheEmployees' State InsuranceAct, 1948 (ESI Act)
providesfor healthcare andcash
benefit paymentsin the caseof sickness,maternityandemployment injury.The Actapplies to
all non-seasonalfactoriesrun with
power andemploying10 or more
personsand tothose
factorieswhich runwithout
power andemploying20 or more
persons.
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TheappropriateGovernment may
after notification in theOfficialGazette,extend the
provisionof the Actto anyother establishm
ent or class of establishments,industrial,commercial,agricultur e or otherwise.
Under theAct, cash benefitsareadminister ed by theCentralGovernment throughtheEmployee
s StateInsuranceCorporation(ESIC),whereasthe StateGovernme
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nts andUnionTerritoryAdministr ations are
administer ingmedicalcare.
TheEmployees' StateInsuranceCorporation (ESIC)
is the premier socialsecurityorganization in thecountry. Itis thehighest
policymaking
anddecisiontakingauthorityunder theESI Actandoverseesthefunctioning of the
ESIScheme under theAct. Thecorporationcomprisesmembers
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representing Centraland StateGovernments,
employers,employees,Parliament and themedical
profession. UnionMinister of Labour
functionsas theChairmanof theCorporation. AStandingCommittee constituted from
among themembersof theCorporation acts astheExecutiveBody for theadministration of the
Scheme.The basic
provisionsof the Actare :-
Every
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factor yor est
ablishmenttowhichthisAct
ap pliesshall
beregistered wit
hinsuchtimeandinsuchma
nner asmay
bespeci
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fiedinthereg
ulationsmadeinthis
behalf.
It pr ovidedfor anintegr
atedneed
basedsocialins
uranceschemethat
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would
pr otect
theinterestof workersinconti
ngenciessuchassickness,
mater nity,temporaryor
per ma
nent physicaldisablem
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ent,deathdu
etoem
ploymentinjur yresult
inginlossof wagesor ear nin
gca
pacity.
Italso
pr
ovidedfor sixsocial
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security
benef
its:-
M
S
M
D
D
F
TheCentr alGover nment
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may,
bynotifi
cationintheOf ficialGazette,est
ablishaCorporationto
bekn
ownasthe'Employees'State
InsuranceCorporatio
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n'for theadmi
nistrationof theschemeof E
mployees'StateInsurancein
accor dancewiththe
pr ovisio
nsof theAct.
Th
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eCorporatio
nmay,inadditiontothesche
meof
benef itsspecifiedinthi
sAct,
pr omotemeasuresfor
theim pr ovementof the
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healthand
welfareof insured
per sonsan
dfor therehabilitationandre-
em ploymentof insured
per sons
whohave
beendisabl
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edor injured
andmayincur inres
pectof
suchmeasuresex
penditur e
fromthefundsof theCorpora
tionwithinsuchlimi
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tsasmay
be
prescr ibed
bytheCentr alGover
nment.
Thecontr ibutio
n paya
bleunder thisActin
res pectof anem
ploye
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eshallcomp
risecontr ibution
paya
ble by
theem
ployer andcontr ibution
paya
ble bytheem
ployeeand
shall be paidtotheCo
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rporation.Th
econtr ibutionsshall
be paid
atsuchratesasmay
be prescr
ibed
bytheCentr alGover nment
.
Allcontr ibutio
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ns paidunder
thisactandallother moneys
receivedon
behalf of theCorp
orationshall
be paidinto afu
ndcalledthe'Employees
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'StateInsura
nceFund'whichshall
beheld
andadminister ed
bytheCorp
orationfor the
purposesof thi
sAct.
Whoev
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er,for the
purp
oseof causinganyincrease
in paymentor
benef itunder thi
sAct,or for the
purposeof
causingany
payment
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or benef itto
bemadewhereno
paymentor
be
nef itisauthorised
byor under
thisAct,or for the
purpose
of avoidingany
paym
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entto
bemade
byhimself under thisActor
enablinganyother
per sonto
avoidanysuch
payment,kn
owinglymakesor ca
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usesto
bema
deanyfalsestatementor fal
serepresentation,shall
be punis
ha blewithim
prisonmentor wit
hfineor with
both.
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If the
per
soncommittinganoff ence
under thisAct isacompany,
every per son,whoatthetime
theoff encewascom
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mittedwas
inchargeof,andwasres
po
nsi bleto,thecompanyfor theco
nductof the
businessof thecomp
any,aswellastheco
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mpany,shall
bedeemedto
beguiltyof theoff
enceandshall
belia
bleto
be
pr oceededagainstand
pu
nishedaccor dingly.
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