Employees' State Insurance

In March 1943, Bhalchandra Pundarik (BP) Adarkar was appointed by the Government of India to create a report on the health insurance scheme for industrial workers. The report became the basis for the Employment State Insurance (ESI) Act of 1948. The act was initially intended for factory workers but later became applicable to all establishments having 10 or more workers. As of 31 March 2016, the total beneficiaries are 82.8 million. ==ESI Act==

Employees' State Insurance Corporation (ESIC), established by ESI Act, is an statutory organisation under Ministry of Labour and Employment, Government of India. As it is a legal entity, the corporation can raise loans and take measures for discharging such loans with the prior sanction of the central government and it can acquire both movable and immovable property and all incomes from the property shall vest with the corporation. The corporation can set up hospitals either independently or in collaboration with state government. There are ESIC Medical Colleges, Hospitals and Dispensaries throughout the country run directly by the corporation under the Ministry of Labour & Employment along with ESIS hospitals and dispensaries which are run by respective state governments. The ESIC has its offices throughout the country with Jurisdiction further dividing into Regional Offices(ROs) & Sub- Regional Offices(SROs). ==Benefits==

As per the section 46 of the ESI Act, 1948, six benefits are envisaged to its subscribers. 1- Medical benefit 2- Sickness benefit 3- Maternity benefit 4- Disablement benefit 5- Dependants benefit 6- funeral expenses For all employees earning or less per month as wages, the employer contributes 3.25% and the employee contributes 0.75%, total share 4%. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organised sector. The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefit in certain contingencies and maternity benefit in case of women employees. In case of employment-related disablement or death, there is provision for a disablement benefit and a family pension respectively. In addition to insured workers, poor families eligible under the Rashtriya Swasthya Bima Yojana can also avail facilities in ESI hospitals and dispensaries. ESI Corporation also runs medical, nursing and paramedical schools in some ESI hospitals across India. ==Medical and dental colleges==

Employees' State Insurance Corporation runs medical, dental, nursing and paramedical schools in many locations across India. Presently, there are 11 medical colleges and 2 dental colleges established by the ESI Corporation. These colleges admit students on the basis of marks obtained in the competitive examinations conducted at the central level, the National Eligibility cum Entrance Test (NEET-UG). There are 8 Medical Colleges managed by the Ministry of Labour and Employment, Government of India under the ESI Corporation. They are: • ESIC Medical College and PGIMSR, Rajaji Nagar, Bengaluru, Karnataka • ESIC Medical College and PGIMSR, K. K. Nagar, Chennai, Tamil Nadu • ESI-PGIMSR & ESIC Medical College and Hospital, Joka, West Bengal • ESIC Medical College and PGIMSR, Faridabad, Haryana • ESIC Medical College and PGIMSR, Sanath Nagar, Hyderabad, Telangana • ESIC Medical College and PGIMSR, Kalaburagi, Karnataka • ESIC Medical College, Alwar, Rajasthan • ESIC Medical College and Hospital, Patna, Bihar • ESIC Medical College & Hospital, Beltola, Guwahati The administration of the remaining 3 medical colleges have been handed over to the respective State Governments under various MoU. They were established by the ESI Corporation but are managed by the state government since inception. They are: • Government Medical College, Kollam, Kerala. • Shri Lal Bahadur Shastri Government Medical College & Hospital Mandi, Himachal Pradesh. • Government Medical College & ESI Hospital, Coimbatore The Dental colleges run by the ESI Corporation are - • ESIC Dental college and Hospital, Rohini, New Delhi. • ESIC Dental College, Kalaburagi, Karnataka. The Government of India plans to construct 20 more ESI Medical Colleges in various cities across India in the upcoming years. ==New Amendment==

The Employees’ State Insurance Corporation (ESIC) raised the monthly wage limit to Rs. 21,000 from the existing Rs. 15,000, for coverage with effect from 1 January 2017. The rate of contribution was reduced from 6.5% to 4% (employer's share 3.25% and employee's share 0.75%) effective from 1 July 2019. ==Landmark Judgements==

ESIC v/s Builders' Association of India Supreme Court of India Stays the applicability of the Employees' State Insurance to the Construction Workers. ESIC vs Texmo Industries Conveyance/Travelling Allowance not to be consider as Wages under Sec. 2(22) of ESIC. ==References==