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Employess State Insurance
Coverage
COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing
20 or more persons; but it is now applicable to non-seasonal power using factories
employing 10 or more persons and non-power using factories employing 20 or more
persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants,
cinemas including preview theatre, road motor transport undertakings and newspaper
establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with
effect from 1.10.2006).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already
been implemented in different areas in the following States/Union Territories
STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and
Mizoram.
UNION TERRITORIES Delhi, Chandigarh and Pondicherry
Benefits
The section 46 of the Act envisages following six social security benefits :-
(a) Medical Benefit
(b) Sickness Benefit(SB)
1. Extended sickness Benefit(ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit(MB)
(d) Disablement Benefit
1. Temporary disablement benefit(TDB)
2. Permanent disablement benefit(PDB)
(e) Dependants’ Benefit(DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to
the paying capacity as a fixed percentage of the workers wages, whereas, they are
provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini
Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory
conditions.
In addition, the scheme also provides some other need based benefits to insured
workers.
These includes :
i. Rehabilitation allowance
ii. Vocational Rehabilitation
iii. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan
Yojana)
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