Prresentation On Employee'S State Insurance Act (1948) : by Nishat Ansari Mba Iind Year

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PRRESENTATION

ON
EMPLOYEE’S STATE
INSURANCE ACT(1948)
BY NISHAT ANSARI
MBA IInd year
INTRODUCTION
The Employee State Insurance Act, [ESIC] 1948, is
a piece of social welfare legislation enacted
primarily with the object of providing certain
benefits to employees in case of sickness,
maternity and employment injury and also to
make provision for certain others matters
incidental thereto.
Applicability of the Act:
1) All factories excluding seasonal factories employing
10 or more persons and working with electric power.

2) All factories excluding seasonal factories employing


20 or more persons and working without electric
power.

3) Any establishment which the Government may


specifically notify as being covered.

4) Shop employing 20 or more persons.


Eligibility
 Any person employed for wages (up to Rs. 6,500) in or
in connection with the work of a factory or
establishment end.

 Any person who is directly employed by the employer


in a factory or through his agent on work which is
ordinarily part of the work of the factory or incidental
to purpose of the factory.
IMPORTANT DEFINITIONS UNDER THE
ACT
APPROPRIATE GOVERNMENT: The expression
means the central govt. in respect of establishment
under its control or a railway administration or a major
part or a mine or oil field. In all other cases it means
the state govt.
SEASONAL FACTORY: It means a factory which is
exclusively in one or more of the following
manufacturing processes , namely , cotton ginning,
cotton or jute pressing, the manufacturing process or
which is incidental to or connected with any of the
aforesaid processes.
IMPORTANT DEFINITIONS UNDER THE ACT
IMMEDIATE EMPLOYER: A person who has
undertaken to execute a work on the premises of a
factory or establishment.
INSURABLE EMLOYMENT: It means an
employment in a factory or establishment to which
this Act applies.
PERMANENT PARTIAL DISABLEMENT It means
such disablement of a permanent nature as reduces
the earning capacity of an employee in every
employment which he was capable of undertaking at
the time of the accident routing in the disablement.
IMPORTANT DEFINITIONS UNDER THE ACT
PERMANENT TOTAL DISABLEMENT: It means
such disablement of a permanent nature as
incapacitates an employee for all work which he was
capable of performing at the time of the accident
resulting in such disablement.
TEMPORARY DISABLEMENT: It means a
condition resulting from an employment injury, due to
this employee incapable of doing the work.
Benefits available to insured employee
 The purpose of the Employee State Insurance Act is
to provide benefits as detailed in the Act particularly
in section 46, to the insured persons or their
dependants.
 The following benefits are provided under section 46.
 Sickness benefit
 Maternity benefit
 Disablement benefit
 Dependents benefit
 Medical benefit
 Funeral expenses
Sickness benefit
Every insured employee is entitled to the cash benefit for the period of sickness
certified by a duly appointed medical practitioner if the contributions in respect of
him were payable for not less than 78 days in the corresponding contribution
period.

Cash benefit takes the form of periodical payment made to an insured person which
is payable for maximum numbers of 91 days in any two consecutive benefit
periods. The benefit is not paid for the first two days of sickness which is treated as
the waiting period.

Insured persons suffering from long term diseases like T.B., leprosy, mental, heart
etc. and who have been continuous employment for two years are entitled to get
sickness benefit period up to 309 days.
Maternity benefit
A periodical cash benefit is payable to an insured
woman employee, in cash of confinement,
miscarriage, medical termination of pregnancy,
premature birth of a child or sickness arising from
pregnancy etc.

If the contributions in respect of her were payable for


at least 70days in the two immediately preceding
contribution periods

The benefit is payable of twice the standard benefit


rate or Rs.20, whichever is higher for all days on which
she does not work during the prescribed period.
Disablement benefit
It is payable to an employee who is injured in the course
of his employment and is permanently or temporarily
disabled or contacts any occupational disease.

A person who sustains temporary disablement for not


less than 3days(excluding the day of accident) shall be
entitled to periodical payment as may be prescribed by
the central govt.

The benefit of temporary disablement is, however, not


payable for any day on which the employee works,
remains on lease, holiday or strike in respect of which
he receives wages.
Dependents benefit
If any employee dies during any period for which he is
entitled to a cash benefit, the amount of such benefit shall
be payable up to & including the day of his death.

The amount of benefit shall be paid to the nominee or,


where there is no nomination, to the heir or legal
representative of the deceased employee.
Medical benefit
An insured person or a member of his family whose
condition requires medical treatment and
attendance entitled to receive medical benefit.

Rs.250 on account of confinement expenses shall be


paid to an insured person or his wife if confinement
occurs at a place where necessary medical facilities
under E.S.i.C. schemes are not available.

Employer not to dismiss or punish employee during


period of sickness- section73.
Funeral Expenses
If an insured employee dies, the eldest serving
member of his family is entitled to reimbursement of
such expenditure subject to maximum of Rs.2500

The claim for the funeral expenses should be


submitted with prescribed document and form within
three months of the death of the insured employee.
Offences and penalties
Punishment for false statement:- In this case any
false statement or false representation, shall be
punishable with imprisonment up to Rs.2000 or with
both

Punishment for failure to pay contributions:- if any


person fails to pay any contribution which under to this
act he is liable to pay, he shall be punishable with
imprisonment up to three years.

Punishment for other contravention:- in


contraventions like dismisses, discharges, reduces or
otherwise punishes an employee, shall be punishable
with imprisonment up to one year or with fine up to
Rs.4000 or with both
Offences and penalties
Power to recover damages:- If employer fails to
pay the amount of contribution then corporation
may recover from the employer by way of penalty.

Power of court to make orders:- If court makes


order for employer- if employer is not able to make
this order within period then employer shall be
punishable with imprisonment in respect thereof
U/S.85 and shall also be liable to pay fine up to
Rs.1000 for everyday.
THANK YOU

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