Employees State Insurance Corporation

Employees State Insurance Corporation (E.S.I.
C) –
According to Section 3 of the Employees State Insurance Act,1948 With effect from such
date as the Central Government may, by notification in the Official Gazette, appoint in this
behalf, there shall be established for the administration of the scheme of employees' state
insurance in accordance with the provisions of this Act a Corporation to be known as the
Employees' State Insurance Corporation. The Corporation is a body corporate by the name of
Employees' State Insurance Corporation having perpetual succession and a common seal and
shall by the said name sue and be sued. It was established on 24 February, 1952. The corporation
is supposed to grant relief to the employees in case of medical emergencies.
Constitution of Corporation
The composition of the ESIC is defined in Section 4, and it is as follows:
 The Director-General.
 Chairman, appointed by the Central Government.
 Vice-Chairman appointed by the Central Government.
 Not more than 5 persons nominated by the Central Government.
 1 person to represent each state.
 1 person representing the Union Territories.
 10 persons representing employers.
 10 persons representing employees.
 2 persons representing the medical profession.
 3 members of parliament (2: Lok Sabha and 1: Rajya Sabha).
Term of office of members of the Corporation

Via Section 5, the following members are appointed for up to a 4 year period:
 Director-General.
 Chairman.
 Vice-Chairman.
 The 5 people nominated by Central Government.
 The members representing each state.
 The members representing each Union Territory.
Eligibility for re-appointment or re-election

An outgoing member of ESIC, the Standing Committee of ESIC, or the Medical Benefit Council
is automatically eligible for re-appointment or re-election into office as the case may be, at the
pleasure of the appointing Central Government.
Authentication of orders, decisions, etc.

The signature of the Director-General of ESIC is the only necessary requirement to authenticate
an outgoing order or a decision, there is no other way to authenticate or enforce an order.
The Director-General can also temporarily delegate his authority to any other officer. In this
case, the signature of the authorised officer will also suffice to authenticate an order.
FUNCTIONS AND POWERS OF THE ESI. CORPORATION
The Corporation is primarily concerned with policy formulation and effective implementation of
various provisions of the ESI. Act. For this it has the following functions and the powers:
(1) The Corporation may promote measures for the improvement of health and welfare of the
insured persons, for the rehabilitation and re –employment of insured persons who have been
disabled or injured, and may incur for these purposes expenditure from the funds of the
Corporation within such limits as may be prescribed by the Central Government. This power has
been given to the Corporation under Section 19 to step up the benefits for the insured persons.
This is very important in today’s context as the vital problem of the persons injured or disabled
by accident or occupational disease is not compensation, but the rehabilitation and the re-
employment.
(2) To extend medical benefit to the families of insured persons. To settle disputes arising
between Corporation and State Government and the proportionate share of the cost of medical
benefits which is proposed to be referred to arbitration. The Corporation shall prepare budget
estimates showing the probable receipts and expenditure for the following year. The budget shall
be submitted to the Central Government.
(3) To make any proposal to set up hospitals and their maintenance by the Corporation itself in
agreement with the State Government. To make any proposal to grant exemption from one or
more provisions by the Act by the State Government. The Corporation shall submit correct
accounts of the income and expenditure in such form and in such manner as may be prescribed
by the Central Government.
(4) Section 97 empowers the Corporation to make regulations consistent with the provisions of
ESI. Act. There are various matters on which such regulations can be framed, but important ones
arising among them are as follows:
(i) Time, place and the procedure to be followed for the meetings of the Corporation, Standing
Committee and Medical Benefit Council;
(ii) Details of the payment of contributions certification of sickness, eligibility for cash benefits,
communication of any payment and the form of claims;
(iii) The circumstances in which an employee in receipt of disablement benefit may be

dismissed, discharged reduced or otherwise provided;
(iv) Certification and notice of pregnancy;
(v) Relaxation of conditions;
(vi) Returns to be submitted and records to be maintained by various parties;

(vii) Duties and powers of inspectors and other officers and servants of the Corporation;
(viii) Method of recruitment and the service conditions of the employees of Corporation;
(ix) Remission of contributions to the Corporation;
(x) The constitution of Medical Boards and the Medical Appeal Tribunals;
(xi) Penalties for breach of regulations;
(xii) Any other matter relevant under the Act.
(xiii) The Corporation shall receive contribution from the employers, shall determine
contribution in certain cases and also ensure the regular and effective recovery

Employees State Insurance Corporation

Uploaded by

Copyright:

Available Formats

Employees State Insurance Corporation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Employees State Insurance Corporation

Uploaded by

Copyright:

Available Formats

What are the functions and powers of the ESIC Corporation?

What are the different members that constitute the ESIC Corporation?

Employees State Insurance Corporation (E.S.I.

Term of office of members of the Corporation

Eligibility for re-appointment or re-election

Authentication of orders, decisions, etc.

(iii) The circumstances in which an employee in receipt of disablement benefit may be

(iv) Certification and notice of pregnancy;

(v) Relaxation of conditions;

(vi) Returns to be submitted and records to be maintained by various parties;

(ix) Remission of contributions to the Corporation;

(xi) Penalties for breach of regulations;

(xii) Any other matter relevant under the Act.

You might also like