Employees’ State Insurance Corporation (ESIC)

GS II:  Statutory, regulatory and various quasi-judicial bodies

Overview

1. Details of ESIC
2. About Statutory Organisation

About Employees’ State Insurance Corporation (ESIC) 

• The Employees’ State Insurance Corporation (ESIC) is a statutory body in India that operates under the Ministry of Labour and Employment, Government of India.
• ESIC is responsible for implementing the Employees’ State Insurance (ESI) scheme, a comprehensive social security and health insurance scheme designed to protect the interests of workers and provide them with financial and medical benefits.
• ESIC is vital in providing social security and healthcare support to a significant segment of India’s workforce.
• It helps ensure that employees and their families have access to medical services and financial assistance during times of need, contributing to their overall well-being.

Key details about the Employees’ State Insurance Corporation (ESIC) in India

• Establishment
  • ESIC was established on February 24, 1952, by the Indian government through the promulgation of the Employees’ State Insurance Act, 1948.
• Objective
  • The primary objective of ESIC is to provide social security and protection to industrial and commercial employees and their dependents against various employment-related contingencies, including sickness, maternity, disability, or death due to employment injury.
• Coverage
  • ESIC covers employees working in specified factories and establishments that meet certain criteria, such as having ten or more employees.
  • Employees with monthly wages/salaries up to a prescribed limit are eligible for coverage.
• Contributions
  • Both employees and employers contribute to the ESI scheme.
  • Contributions are made as a percentage of the employee’s wages, with the employer responsible for deducting and depositing the employee’s share of the gift.
• Benefits
  • ESIC provides a range of benefits to insured employees and their dependents, including medical, sickness, maternity, disablement, and survivor benefits in case of the insured person’s death.
  • Medical benefits include access to ESIC hospitals and dispensaries for medical treatment.
• Healthcare Facilities
  • ESIC operates a network of hospitals, dispensaries, and clinics across India to provide medical services to insured persons and their dependents.
  • These facilities offer both outpatient and inpatient services.
• Registration
  • Employers are required to register themselves and their eligible employees with ESIC.
  • Once registered, employees receive an ESIC card, which provides them access to medical facilities.
• Compliance
  • Employers are obligated to comply with the ESI Act’s provisions, including timely deposit of contributions and reporting of employee status changes.
• Administration
  • ESIC is administered through a governing body headed by the Union Minister of Labour and Employment.
  • It is assisted by a Director-General and other officials responsible for its day-to-day operations.
• Amendments
  • The ESI Act has undergone amendments over the years to expand coverage and enhance benefits for insured employees.

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