What Is Employee State Insurance Act?
Employee State Insurance Act (ESIC), socio-economic protection for the individuals aims to protect the laborers and employees across the nation. An apex body which takes care of the rules and regulation of ESIC is Employees’ State Insurance Corporation.
For Encouragement financial safety and security to workers the insurance saves the worker from untoward occurrences which range from sickness, injury, disablement on temporary or permanent. Providing medical benefits to the insured employee and his family member, the ESIC has no restriction on the expenditure.
To protect the workers and laborers under the manufacturing process, the insurance policy goals towards protecting the workers from health hazards. In turn, provides aid to the loss of income in case of mishaps or untoward incidents as sickness or injury that happened at the work arena.
Formulated post-independence, the act applies for a medical institution, business establishment, factories, road transport, hotels, restaurants, newspaper establishments, etc., or to any organization which has the employee constituting of 10 or more persons.
Advantage of having Employee State Insurance Act
By taking into account the past adverse incidents which happened to the workers working in the industry, is the basis of this insurance act. Additionally for the female workers the maternity benefit of 26 weeks to the pregnant woman. And the rule varies in case of miscarriage.
Providing benefits to the dependents of the deceases person is subject to the death that occurs due to occupational hazards or injury at the time of employment. And several other benefits are falling under the purview of funeral expenses of 15000 rupees, and confinement expenses, etc.
Leveraging social responsibility, ESI targets the employees earning wages of up to 21000 rupees. Providing benefit and support to vast multitudes of factories, workers and beneficiaries, ESIC is of immense help to the worker and their family members.
There are certain rules and regulation specified under the permanent and temporary disablement which covers the guarantee of lifetime monetary benefit until lifetime and in case of temporary disablement the benefit is stretched until recovery.
Certain rules and regulations of ESI
Concerning the act there are certain rules and regulations which the dependent and provider of insurance must follow:
- Every worker must inform the ESI registration number to their new employer while switching the job.
Having an ESI Card or e-Pehchan Card is a must requirement to avail the benefit of ESI at medical institutions and dispensaries.
As per the ESI act every entity which has employees in 10 or more in number falls under the purview of registering under the act as it’s mandatory for entities.
However, the overtime done by the worker is not included under the limit of ESI act.
An employer is expected to maintain the records of employees which range from books of accounts, income records, attendance register, accident register and inspection book to be systematic and organized under the rule mention in ESIC Act.
After registering under the act an ESIC code is generated for the beneficiary which is a 17 digit number.
This insurance cover is initiated from day one of employment, and the rule is applicable both for the insured person and the dependents. Whereas the benefit coverage can be availed only from the prescribed medical institution and in case of private medical hospitals, there are certain rules and regulations formulated regarding it.
This ESIC act applies to entities providing wages to the workers and labours whereas the Act doesn’t deal with defence, mines, railways and employees of educational institutions.
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