Understanding the Employees State Insurance Corporation (ESIC)

Employees State Insurance Corporation (ESIC) is a social security and health insurance scheme that is aimed at providing financial protection to workers in India. It is a body that works towards improving the lives of workers by providing them with comprehensive medical care, monetary benefits, and other social security measures. The scheme is run by the Government of India and is regulated by the Ministry of Labor and Employment.

History of the Employees State Insurance Corporation

The Employees State Insurance Corporation was established in the year 1948, following the promulgation of the Employees State Insurance Act. It was introduced as a response to the need for a comprehensive social security and health insurance scheme for workers in India. At the time of its inception, ESIC covered only a few industrial centers in the country. However, over the years, its scope has been widened, and today, it covers a vast majority of workers in India.

ESIC is the flagship social security scheme of the Government of India and is one of the largest medical insurance providers in the country.

How Does the Employees State Insurance Corporation Work?

The Employees State Insurance Corporation works by providing workers with comprehensive health insurance cover. The scheme is funded by contributions made by both employers and employees. The contributions are calculated as a percentage of the workers’ salaries, and the contributions made by the employer are higher than those made by the employee. The contributions are made on a monthly basis, and they are deposited with the ESIC fund.

The ESIC fund is used to provide medical care, monetary benefits, and other social security measures to workers. The benefits provided by the scheme are available to the worker and their dependents.

What Benefits are Provided by the Employees State Insurance Corporation?

The Employees State Insurance Corporation provides a wide range of benefits to workers. These benefits include:

Who is Eligible for the Employees State Insurance Corporation Scheme?

All workers who earn a salary of up to Rs. 21,000 per month are eligible to be covered under the Employees State Insurance Corporation scheme. The scheme is applicable to both permanent and temporary workers. It is also applicable to workers who work in hazardous industries.

It is mandatory for employers to register their employees under the ESIC scheme. Employers who fail to register their employees may face legal action.

ESIC Frequently Asked Questions (FAQs)

Q. What is the contribution rate for the ESIC scheme?

The contribution rate for the ESIC scheme is 4 percent of the employee’s salary, with the employer contributing 3.25 percent of the salary and the employee contributing 0.75 percent of the salary.

Q. Can an employee opt out of the ESIC scheme?

No, employees cannot opt out of the ESIC scheme. It is mandatory for all employees earning up to Rs. 21,000 per month to be covered under the scheme.

Q. Are dependents of workers covered under the ESIC scheme?

Yes, dependents of workers are covered under the ESIC scheme. The dependents include the spouse, children, and parents of the worker.

Q. Can a worker claim benefits from both the ESIC scheme and the workmen’s compensation scheme?

No, a worker cannot claim benefits from both the ESIC scheme and the workmen’s compensation scheme. In case of an injury or illness, the worker can claim benefits either under the ESIC scheme or the workmen’s compensation scheme.

Q. How can a worker claim benefits under the ESIC scheme?

A worker can claim benefits under the ESIC scheme by submitting a claim form to the nearest ESIC branch office. The claim form should be supported by relevant medical documents.

Conclusion

The Employees State Insurance Corporation is an essential social security and health insurance scheme that provides comprehensive medical care and financial protection to workers in India. The scheme is mandatory for all workers earning up to Rs. 21,000 per month, and it is funded by contributions made by both employers and employees. The benefits provided by the scheme are available to the worker and their dependents, and they include medical care, cash benefits, funeral benefits, gratuity, and pension benefits.