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Employee Insurance Act 1948

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Employee s' State Insurance Act, 1948 The Employee s' State Insurance Act, 1948 (ESI Act)

provides for health care and cash benefit payments in the case of sickness, maternity and employme nt injury. The Act applies to all nonseasonal factories run with power and employing 10 or more persons and to those factories which run without power and employing 20 or more persons.

The appropriat e Governme nt may after notificatio n in the Official Gazette, extend the provision of the Act to any other establishm ent or class of establishm ents, industrial, commerci al, agricultur e or otherwise. Under the Act, cash benefits are administer ed by the Central Governme nt through the Employee s State Insurance Corporati on (ESIC), whereas the State Governme

nts and Union Territory Administr ations are administer ing medical care. The Employee s' State Insurance Corporati on (ESIC) is the premier social security organizati on in the country. It is the highest policy making and decision taking authority under the ESI Act and oversees the functionin g of the ESI Scheme under the Act. The corporatio n comprises members

representi ng Central and State Governme nts, employers , employees , Parliamen t and the medical profession . Union Minister of Labour functions as the Chairman of the Corporati on. A Standing Committe e constitute d from among the members of the Corporati on acts as the Executive Body for the administra tion of the Scheme. The basic provisions of the Act are : Ev ery

fac tor y or est abl ish me nt to wh ich thi s Ac t ap pli es sh all be reg ist ere d wit hin su ch ti me an d in su ch ma nn er as ma y be sp eci

fie d in the reg ula tio ns ma de in thi s be hal f. It pr ovi de d for an int egr ate d ne ed ba se d so cia l ins ura nc e sc he me tha t

wo uld pr ote ct the int ere st of wo rke rs in co nti ng en cie s su ch as sic kn ess , ma ter nit y, te mp ora ry or per ma ne nt ph ysi cal dis abl em

ent , de ath du e to em plo ym ent inj ur y res ult ing in los s of wa ge s or ear nin g ca pa cit y. It als o pr ovi de d for six so cia l

sec uri ty be nef its: M

Th e Ce ntr al Go ver nm ent

ma y, by not ifi cat ion in the Of fic ial Ga zet te, est abl ish a Co rp ora tio n to be kn ow n as the 'E mp loy ees ' Sta te Ins ura nc e Co rp ora tio

n' for the ad mi nis tra tio n of the sc he me of E mp loy ees ' Sta te Ins ura nc e in ac cor da nc e wit h the pr ovi sio ns of the Ac t. Th

e Co rp ora tio n ma y, in ad dit ion to the sc he me of be nef its sp eci fie d in thi s Ac t, pr om ote me as ure s for the im pr ov em ent of the

he alt h an d we lfa re of ins ure d per so ns an d for the reh abi lita tio n an d reem plo ym ent of ins ure d per so ns wh o ha ve be en dis abl

ed or inj ure d an d ma y inc ur in res pe ct of su ch me as ure s ex pe ndi tur e fro m the fu nd s of the Co rp ora tio n wit hin su ch li mi

ts as ma y be pre scr ibe d by the Ce ntr al Go ver nm ent . Th e co ntr ibu tio n pa ya ble un der thi s Ac t in res pe ct of an em plo ye

e sh all co mp ris e co ntr ibu tio n pa ya ble by the em plo yer an d co ntr ibu tio n pa ya ble by the em plo ye e an d sh all be pai d to the Co

rp ora tio n. Th e co ntr ibu tio ns sh all be pai d at su ch rat es as ma y be pre scr ibe d by the Ce ntr al Go ver nm ent . All co ntr ibu tio

ns pai d un der thi s act an d all oth er mo ne ys rec eiv ed on be hal f of the Co rp ora tio n sh all be pai d int oa fu nd cal led the 'E mp loy ees

' Sta te Ins ura nc e Fu nd' wh ich sh all be hel d an d ad mi nis ter ed by the Co rp ora tio n for the pu rp os es of thi s Ac t. W ho ev

er, for the pu rp os e of ca usi ng an y inc rea se in pa ym ent or be nef it un der thi s Ac t, or for the pu rp os e of ca usi ng an y pa ym ent

or be nef it to be ma de wh ere no pa ym ent or be nef it is aut ho ris ed by or un der thi s Ac t, or for the pu rp os e of av oid ing an y pa ym

ent to be ma de by hi ms elf un der thi s Ac t or en abl ing an y oth er per so n to av oid an y su ch pa ym ent , kn ow ing ly ma ke s or ca

us es to be ma de an y fal se sta te me nt or fal se rep res ent ati on, sh all be pu nis ha ble wit h im pri so nm ent or wit h fin e or wit h bot h.

If the per so n co m mi tti ng an off en ce un der thi s Ac t is a co mp an y, ev ery per so n, wh o at the ti me the off en ce wa s co m

mi tte d wa s in ch arg e of, an d wa s res po nsi ble to, the co mp an y for the co nd uct of the bu sin ess of the co mp an y, as we ll as the co

mp an y, sh all be de em ed to be gui lty of the off en ce an d sh all be lia ble to be pr oc ee de d ag ain st an d pu nis he d ac cor din gly .

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