Social security and labor welfare

1. EMPLOYEE STATE INSURANCE ACT 1948
BY: KAJAL

2. THE EMPLOYMENT STATE INSURANCE ACT 1948
• Pioneering measure in social insurance in India.
• Health insurance first discussed in 1927 by Indian legislature.
• Originally called “workmen’s state insurance bill” 1946.
• Came into force on 19th April 1948.

3. OBJECTIVE
The objective of the act is to secure sickness,
maternity and medical benefits to the employees
Of factories and establishments and dependents
benefits to the dependents of such employees

4. APPLICABILITY
Act apply to factories using power not using and employing
20 or more persons. Gradually Extended to the following:-
• Smaller power-using factories with 19-20 persons
• Non-power factories with 20 or more persons
• Shops
• Hotels and Restaurants
• Cinemas including preview theatres
• Newspaper establishment
• Road motor transport undertakings employing 20 or more
persons
State government may cover other establishments in
consultation with

5. DEFINATION
EMPLOYEE: Employee refers to any employed on
establishment with this act work of a factory or includes
technical, manual, clerical and functions:
• No distinction between casual and temporary
employees or technical and non-
technical, or Time-rate or piece-rate.
• Covers admin staff and those in purchase.
WAGES: Wages means remuneration paid in cash ,
including payment in period of leave, lockout or strike
which is not illegal. Does not include:
• Contribution paid to provident fund or pension fund
• Travelling allowance

6. REGISTRATION
• Registration of factory/establishment with employees’
the state insurance corporation
• Statutory responsibility of the employer under section
2-a and 10-b
• Declaration of registration in form 01 to be furnished to
the appropriate regional office Within 15 days of the
act becoming applicable
• Employer should get the declaration form filled in by
every employee covered under the scheme

7. BENEFITS
• Sickness and Extended sickness benefit
• Maternity benefit
• Disablement benefit
• Dependant’s benefit
• Medical benefit
• Funeral benefit

8. SICKNESS AND EXTENDED SICKNESS BENEFIT
• Represents periodical payments made to an insured person
for the period of certified
• Sickness after completing 9 months in insurable
employment
• To qualify, contributions should be for minimum 78 days in
the relevant period
• Maximum duration for benefit is 91 days
• Rates of payment vary from rs.14-125 per day, i.e. Average of
50% of daily wages
• Insured persons suffering from tb, leprosy, mental and
malignant diseases or other specified long term diseases are
entitled to extended benefits at higher rates, provided he has
been continually employed for at least two years

9. MATERNITY BENEFIT
• Implies cash payment to an insured woman in case of
confinement or miscarriage or sickness arising out of
pregnancy or premature birth.
• Woman should have contributed for minimum 70 days in the
preceding two consecutive contribution periods.
• Daily rate of benefits double the standard sickness benefit rate,
i.e. full wages.
• Normally payable for max 12 weeks for confinement and 6
weeks for miscarriage or medical termination of pregnancy.
• Payable even in event of death of the woman.

10. DISABLEMENT BENEFIT
• In case of temporary disability arising out of employment
injury, this benefit is admissible for the entire period certified
by an insurance medical officer/practitioner for which the
insured person does not work for wages.
• Rate payable not less than 70% of daily wages ; minimum 3
days of incapacity required.
• In case injury results in permanent, partial or total loss of
earning capacity, periodical payments is to be made for life .
One time lump sum is permissible in certain cases.

11. DEPENDANTS’ BENEFITS
• Periodical pension paid to dependants of decreased where
death occurs out of employment injury or disease.
• Windows: 3/5th of benefit rate for life or until.
• Benefit not paid to married daughters.
• In case there is no window or child , benefit can be paid to
other dependants including parents.
• Amount paid is reviewed and increases granted from time to
time to compensate for erosion in real value and cost of living.

12. MEDICAL BENEFIT
• Insured persons and their families entitled to free, full and
comprehensive medical care.
• Extended up to two years for chronic and long-term diseases.
• Treatment continues even in person goes out of coverage, till
sickness ends.
• Package covers all aspects of health care from primary to
super-specialist facilities, such as:
Out patient treatment
Domiciliary treatment
Specialist consultation and diagnostic facilities

13. FUNERAL BENEFIT
• Funeral expenses are in the nature of lump sum payment up
to a maximum of rs.2500 made to defray the expenditure of the
funeral of decreased insured person.
• The amount is paid either to the eldest surviving member of the
family or, in his absence, to the person who actually incurs the
expenditure on the funeral.