Employees' State Insurance

ESI Corporation's logo

Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers. For all employees earning ₹15000 (US$220) or less per month as wages, the employer contributes 4.75 percent and employee contributes 1.75 percent, total share 6.5 percent. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESIC is an autonomous corporation by a statutory creation under Ministry of Labour and Employment, Government of India. As it is a legal entity, the corporation can raise loans and take measures for discharging such loans with previous sanction of the central government and it can acquire both movable and immovable property and all incomes from the property shall vest with the corporations.[1] The corporation can set up hospitals either independently or in collaboration with state government or other private entities, but most of the dispensaries and hospitals are run by concerned state governments.

History

In March 1923 before Indian independence B. N. Adarkar economist and later Governor of the Reserve Bank of India, was appointed by the Government of India to create a health insurance scheme for industrial workers.[2] A year later the report he submitted became the basis for the Employment State Insurance (ESI) Act of 1948.[2] The ESI Act was enacted in India in 1948, but come into reality from 25 February 1952, established in Kanpur and Delhi. Initially intended for workers working in factories and companies only.[3]:1 It is now applicable to all establishments having 10 or more workers including educational institutions, hospitals, etc., covering 15.5 million employees working with about 450,000 employers. Total beneficiaries as of 2011-12 are above 65.5 million.[4]:13[5]

Benefits

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.It is a comprehensive Social Security Scheme designed to accomplish the task of protecting the ‘employees’ in the organized sector against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.[6]

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.[3]:67 Funeral Benefit to dependents of Insured Persons/Insured Women. Super Specialty Treatment through Private Tie Up Network as well as through its own Super Specialty Hospitals situated throughout India. Also ESI is constructing Medical and PG Medical, Dental Colleges in which it has set aside certain percentage of seats for children of Insured Persons. Recently ESI taken a decision to make the 'dependent benefit' up to a ceiling of ₹1200 (US$18) for all eligible dependants of a deceased person. Through this approximately 86000 dependants got benefit. From time to time ESI relaxes conditions for disbursement of Sickness Benefit and Super Specialty Treatment.

Outpatient medical facilities are available in 1398 ESI dispensaries, and through 1,678 empanelled private medical practitioners. Inpatient care is available in 145 ESI Hospitals and 42 Hospital annexes; a total of 19387 beds. In addition, several state government hospitals also have beds for exclusive use of ESI Beneficiaries. Cash benefits can be availed in any of 783 ESI centres throughout India.[4]:13,16

Recent years have seen an increasing role of information technology in ESI, with the introduction of Pehchan smart cards in 'Project Panchdeep', India's largest e-governance project.[4]:8[7] In addition to insured workers, poor families eligible under the Rashtriya Swasthya Bima Yojana can also avail facilities in ESI hospitals and dispensaries. There are plans to open medical, nursing and paramedical schools in ESI hospitals.[4]:8[5]

References

  1. ↑ K.M.Pillai. Labour & Industrial Laws (Fourteenth Edition, 2012 ed.). Allahabad Law Agency. ISBN 81-89530-71-2.
  2. 1 2 Social Security and Social Obligation Sociology for Nurses : A Textbook for Nurses and Other Medical Practitioners By C M Abraham Retrieved 23 August 2013
  3. 1 2 "Employee State Insurance: For a handful of contribution, a bagful of benefits24 February 2011" (PDF).
  4. 1 2 3 4 "Annual Report 2008-2009" (PDF). Employees' State Insurance Corporation. Retrieved 23 February 2011.
  5. 1 2 "ESI plans 11 medical colleges". The Hindu (Chennai, India). 28 October 2009. Retrieved 23 February 2011.
  6. ↑ What is ESI Scheme
  7. ↑ "Kharge launches smart cards for ESIC". The Hindu (Chennai, India). 26 August 2009. Retrieved 23 February 2011.

External links

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