The promulgation of Employees’ State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents. Employees’ State Insurance is a self-financing social security and health insurance scheme for Indian workers.
The ESI Act applies to non-seasonal factories or manufacturing units, shops & establishments, Private Medical & Educational Institutions employing 10 or more persons. Under the enabling provisions of the Act, a factory or establishment, located in a geographical area, notified for implementation of the scheme falls in the purview in the Act. Employees of the aforesaid categories of factories and establishments and drawing wages upto Rs.10,000/- a month are entitled to health Insurance cover under the ESI Act.
The Employees’ State Insurance Corporation (ESIC) is the premier social security organization in the country. It is the highest policy making and decision taking authority under the ESI Act and oversees the functioning of the ESI Scheme under the Act. The corporation comprises members representing Central and State Governments, employers, employees, Parliament and the medical profession. Union Minister of Labour functions as the Chairman of the Corporation. A Standing Committee constituted from among the members of the Corporation acts as the Executive Body for the administration of the Scheme.
The basic provisions of the Act are :-
Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.
It provided for an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity.
In ESI scheme, a worker in insurable employment is called insured person (IP). Insured persons and their family are entitled to different types of benefits. The benefits are broadly classified into two: (1) Medical benefits and (2) cash benefits.
The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefit in certain contingencies and maternity benefit in case of women employees. In case of employment-related disablement or death there is provision for a disablement benefit and a family pension, respectively
Thus in nutshell we can say, it provided for six social security benefits:-
These were some of the provisions regarding Employees State Insurance Act.
How to Register Under Employees’ State Insurance Act, 1948
Registration of a factory/establishment with the Employees’ State Insurance Corporation is a statutory responsibility of the employer under Section 2-A of the Act read with Regulation 10-B. The employer, in respect of a factory/establishment to which the Act applies for the first time, is liable to furnish Declaration of Registration in Form 01 (Employers’ Registration Form) to the concerned Regional / Sub Regional Office within 15 days after the Act becomes applicable.
This is obligatory on the part of the Employer. In addition to this, the employer will have to indicate, in a separate sheet, the name and address of the factory/establishment, number of employees, nature of duty and name, designation and address of the Manager, controlling such persons in respect of any other office(s) situated outside the premises of the Factory/ Establishment.
Procedure for Registration of Factories
Ascertain whether your factory / establishment is situated within the area of implementation by ESIC (Implemented area). Regional Office, Sub Regional Office, Branch Offices, and Inspectorates Office of ESIC will guide you, on this matter, if contacted.
It is statutory responsibility of the employer to get his factory registered under the ESI as per Section 2A of the Act, read with Regulation 10 B within 15 days of establishing or 15 days after the Act becomes applicable to the area in which the factory is situated. A declaration of registration in Form 01 (Employer’s Registration form) is to be submitted to the appropriate office (Regional Office, ESI Corporation,Chennai in your case) for the purpose.
The Sub Regional Office will allot a specific code number in Form C-11, after examining the aspect of coverage. This number so allotted is very specific for the employer and the same has to be used in all correspondence with ESIC. The area Branch Office to which the particular employer attached is the “Appropriate Office” for “Registration of Employees”. List of Branch Offices and Dispensaries under the Coimbatore Sub Region is furnished in a separate Booklet.
Sub Code Number
There may be a case where the employer is having the main factory / establishment at one station and sub-unit, branch office, sales office or registered office at another station, either within the State or outside the State; In all such cases, on request of the employer to the Regional Office / Sub Regional Office concerned, Sub-Code number is allotted to each sub-unit, branch office, sales office and registered office.
Download Form for Employers Registration Under Employees’ State Insurance Act, 1948
Please Note Article is been compiled from the Contents on Various Government website of ESI Corporations.
(Author ‘Sagar Gupta’ is an innovative leader in delivering corporate advisory & solutions and can be reached at firstname.lastname@example.org)