ESI is a multidimensional social security system tailored to provide socio-economic protection to the worker population and their dependents covered under the scheme. ESI is completely different from insurance that is provided for the general public. It supports full medical care and reasonable economic assistance to the beneficiaries for benefits like sickness, maternity, disablement and death due to employment injury. It is one of the most effective measures available to employees in a working environment.

1. WELCOME
MISS RAJOSI KHANRA
ROLL- 2288004 ; M.Sc. Nursing 2nd year
KINS, KIIT DU

2. ESI ACT
(EMPLOYEE STATE INSURANCE)

3. ESI is a multidimensional
social security system
tailored to provide socio-
economic protection to the
worker population and their
dependents covered under
the scheme.
What is ESI Act ?

4. PURPOSES

5. ● In March 1943, The government of India appointed B. P. Adarkar to
create a report on the health insurance scheme for industrial
workers. The report became the basis for the ESI Act of 1948.
● The Scheme was first implemented at Kanpur and Delhi on 24
February 1952.
● The act was initially intended for factory workers but later became
applicable to all establishments having 10 or more workers.
● The act was amended in 1975,1984,1989 and 2010.
HISTORY

6. ADMINISTRATION

7. Autonomousbody ESICorporation
Chairman UnionMinisterof Labour
Vice-Chairman SecretarytoGovtofIndiaMinistryofLabour
Representatives of central government 5
Representatives fromeachstate 1
Representatives fromeachUT 1
Representatives of employees 5
Representatives of employers 5
Representative of themedical profession 2
Representatives of parliaments 3

8. The corporation has appointed
Regional Boards in the states,
local committees and Regional
and local Medical benefit councils
with the power to administer the
scheme in states. It has also
appointed an inspector to inspect
factories regarding benefits given
to workers.
● Regional offices - 23
● Sub-regional offices - 26
● Divisional offices- 2
● Branch offices - 624
● Cash offices - 197
● Inspection offices - 406
Director general of ESI-
Chief executive officer
● Medical commissioner
● Insurance
Commissioner
● Financial commissioner
● Actuary

9. Under Section 1(5):
The Scheme has been extended
to Shops, Hotels, Restaurants,
Cinemas including preview
theatres, Road motor transport
undertakings and Newspaper
establishments employing 20
or more persons.
Under Section 2(12):
The Act applies to the
“Factories” employing 10
or more persons
irrespective of whether
power is used in the
process of manufacturing
or not.
APPLICABILITY OF ESI ACT

10. The Scheme has been extended to Private Medical
Institutions and Educational Institutions employing 20 or
more persons in certain States.
The existing wage-limit for coverage under the Act is Rs.
15,000/- per month (excluding remuneration for
overtime.
ESI Act is applicable across the length and breadth of the India.

11. CONTRIBUTION PERIODS AND BENEFITS PERIODS
There are two contribution periods each of Six
months and two corresponding benefit periods
of Six months duration as under.
● Contribution Period - 1st April to 30th Sep.,
1st Oct to 31st March
● Benefit Period - 1st Jan to 30th June, 1st July
to 31st Dec.
As per the ESI Act, the employer contributes
3.25% of the wages and the employee contributes
0.75% of the wages to the contributory fund,
which is then used to provide insurance cover to
the employees in difficult times.

12. HOW TO CALCULATE ESI
The calculated wages of Mr X as per the ESI Act, 1948 is INR 20,000. Then the
contributions will be calculated using the ESI calculation formula as below.
PARTICULARS CALCULATION AMOUNT
Employer’s
Contribution
(3.25%)
20,000*3.25% 650
Employee’s
Contribution
(0.75%)
20,000*0.75% 150
Total Contribution 800
After calculating the contributions and deduction of Rs. 150 from Mr. X’s wages, the employer is
responsible for depositing the total contribution, i.e., Rs. 800, to the corporation within the
stipulated time.

13. • Address proof of the business
• Business PAN Card
• Details about shareholders, partners and directors.
• Business licences
• Employee details and the details of their salary structure
• Bank account details
• Memorandum of Association, Article of Association, the
partnership deed or other business deeds.
DOCUMENT REQUIRED FOR REGISTRATION

14. MEDICAL
BENEFITS
SICKNESS
BENEFITS
MATERNITY
BENEFITS
DISABLEMENT
BENEFITS
DEPENDENT
BENEFITS
FUNERAL
BENEFITS
REHABILITATIO
N
BENEFITS

15. The ESI Scheme provides a full range of Medical Care to all Insured person and
their family, through a network of ESI Dispensaries, Hospitals and panel
clinics, Diagnostic Centers and super Speciality.
MEDICAL BENEFITS
Services comprise outpatient care, inpatient care, domiciliary care, specialist
service, ambulance service etc.
There is also a provision of supply of appliances like dentures, hearing aids,
spectacles, artificial limbs, walking callipers, spinal braces, hernia belts etc.
free of cost.
Super speciality treatment such as Open Heart Surgery, Neuro Surgery, Bone
Marrow Transplant, Kidney Transplant or specialized investigations like CAT
scan, MRI, Angiography etc.

16. It consists of periodical cash payment to an insured person in case of
sickness if that is certified by an Insurance Medical Officer or Practitioner.
SICKNESS BENEFITS
The insured persons suffering from long-term diseases like : Tuberculosis,
leprosy, chronic empyema, AIDS, malignant diseases, diabetes mellitus,
nervous system disorders, coronary artery diseases, congestive heart failures
and various other diseases of the cardiovascular system, respiratory diseases,
psychotic diseases.
● Duration: benefit is payable for a max. Period of 91 days in a year.
● This benefit is given to an insured person who has been working
continuously for 2 years.
● The benefits are payable at the rate of 50% of average daily wages.

17. ➢ The benefit is payable in cash to an insured woman for
confinement/miscarriage or sickness arising out of pregnancy/confinement or
premature birth of a child or miscarriage.
➢ The benefit is paid as follows:
● For child delivery - for a total period of 12 weeks beginning not more than 6
weeks before the expected date of childbirth.
● For miscarriage - for a period of 6 weeks following the date of miscarriage.
● For sickness arising out of pregnancy- for 30 days.
➢ The rate of confinement expenses has been increased from Rs. 2500 to Rs.
5000.
➢ The benefit is allowed at about full wages. The benefit is paid for Sundays also.
MATERNITY BENEFITS

18. The ESI Act provides for cash payment besides free medical treatment in
the event of temporary and permanent disablement as a result of
employment injury as well as occupational diseases.
DISABLEMENT BENEFITS
Benefits for temporary disablement are paid at the rate of about
90% of wages for the duration of disablement.
For permanent total disablement, the life pension
payment is made based on the loss of earning capacity
determined by the medical board.

19. Eligible Members:
● A widow can receive this
benefit on a monthly basis for
life or till her Remarriage.
● A son or daughter can receive
this benefit till 18 years of age.
● Other dependants like parents
including a widowed mother
etc. can also receive this benefit
under certain conditions.
Dependents benefit is paid as a
family pension to the dependants of
a deceased insured person in the
event of death due to employment
injury or occupational disease and is
equivalent to about 90% of the
wages.
DEPENDENT BENEFITS

20. The maximum amount of rs. 10,000 for funeral expenses is given
to the eldest surviving member on the death of an insured worker.
FUNERAL BENEFITS
REHABILITATION BENEFITS
● Ensured workers who required artificial limbs are provided with
artificial limbs and also the cash allowance equivalent to the sickness
benefit rate at the time when they are admitted for
provision/replacement of artificial limbs.
● Ensured workers who are permanently handicapped or retired
continue to get medical treatment on payment of 10/- per month.

21. ■ This program, launched on April 1, 2005, is designed for individuals
enrolled in the Employee State Insurance (ESI) scheme. Under this
initiative, employees within the ESI scheme who experience
unemployment due to factory closure or retrenchment are eligible for
unemployment allowance.
■ 50 % of the average daily wages is payable for a maximum period of
twelve months during a lifetime.
■ Additionally, those covered under this scheme are entitled to receive
medical care for themselves and their families. Such healthcare services
can be availed at ESI dispensaries, panel clinics, and ESI hospitals
associated with the individual.
RAJIV GANDHI SHRAMIK KALYAN YOJNA

22. SUMMARY

23. RESEARCH STUDIES

24. The Employee State Insurance (ESI) Scheme is a huge social security for the
employees in the organization. ESI is completely different from insurance that is
provided for the general public. It supports full medical care and reasonable
economic assistance to the beneficiaries for benefits like sickness, maternity,
disablement and death due to employment injury. It is one of the most effective
measures available to employees in a working environment. The purpose of the
study is to analyse the awareness and effective Utilization of Employee State
Insurance (ESI) policy in Tata International. The study also attempts to review the
varied Employee State Insurance (ESI) benefits available to the workers within the
organization. A study questionnaire was framed and given to the workers to seek
out awareness and therefore the effects of utilization of Employee State Insurance
(ESI) policy in Tata International using tools through SPSS software.
Awareness and effective utilization of ESI benefits in Tata
International.

25. Employees’ State Insurance Scheme of India is an integrated social security scheme
tailored to protect workers in the organized sector and their dependants in
contingencies, such as sickness, maternity and death or disablement due to an
employment injury or occupational disease. Towards this objective, the scheme
provides free full medical facilities to insured persons and their dependants, as well
as, cash compensation for any loss of wages or earning capacity of an insured
person. ESI scheme is a very large social security network. The scheme
encompasses basic economic risks namely health, sickness, disability, death and
maternity. It is different from other types of insurance like health insurance in that
it provides a full amount of medical bills irrespective of the premium contribution.
In this direction researcher attempted to study the nurses’’ perception towards ESI
concerning select hospitals in the Udupi District.
Nurses’ perception towards ESI Scheme: a study with
references to select hospitals in Udupi district.

27. The Employee State Insurance (ESI) Scheme is a huge social
security for the employees in the organization. ESI is
completely different from insurance that is provided for the
general public. It supports full medical care and reasonable
economic assistance to the beneficiaries for benefits like
sickness, maternity, disablement and death due to employment
injury. It is one of the most effective measures available to
employees in a working environment.
CONCLUSION

28. REFERENCES
● Gulani K.K., Community Health Nursing, Kumar Publishing House (2022), 3rd edition,
page no: 454-457.
● “Employees State Insurance Act 1948” of India. [Internet]. www.slideshare.net. 2012
[cited 2023 Dec 17]. Available from: https://www.slideshare.net/AnshuSingh2/ppt-on-
esi-act-1948.
● ESI Act [Internet]. www.slideshare.net. 2016 [cited 2023 Dec 17]. Available from:
https://www.slideshare.net/PreetikaMaurya/esi-act-63470325.
● S Sowmya Sai, Dr. Kumar N., awareness and effective utilization of ESI benefits in Tata
International, IJCRT (2021), Volume 9, Issue 5 May 2021, ISSN: 2320-2882.
● Maiya Umesh, Nurses' Perception Towards Esi Scheme: A Study with Reference to Select
Hospitals in Udupi District, Asia Pacific Journal Of Research(2016), Volume 1, ISSN:
2320-5504.