The document provides an overview of the Employee State Insurance Act in India. It discusses that the objective of the act is to provide benefits to employees such as sickness, maternity and injury benefits. It applies to factories and establishments employing 20 or more people. Certain seasonal factories, mines, railways and government organizations are exempted. Employers must contribute 4.75% of wages while employees contribute 1.75% of wages to the insurance scheme. Benefits provided include sickness, maternity, disability, dependent and funeral benefits. The document also outlines employers' obligations to register with the scheme and submit contribution payments, as well as forms used including Form 1, 3, 12, 37 and 86.

1. Employee State Insurance
BY
VENKATESH K

2. Preliminary
Object of the act:
 To provide for certain benefits to employees in case of sickness, maternity and
injury during employment and to make provision for certain other matters in
relation thereto.

3. Preliminary
Applicability of the Act:
 All factories Shops
 employing 20 or more persons.
 Such other Govt. specified establishments.

4. Act does not apply to
Seasonal factories engaged exclusively in any of the activities like:
 Cotton ginning, cotton or jute pressing, decoration of ground nuts, manufacturing
coffee, indigo, lac, rubber, sugar, or tea or any manufacturing process incidental to
or connected with any of the afore said activities, and including factories engaged
for a period not exceeding seven months in a year in blending, packing or
repackaging tea or coffee, or in such other processes as may be specified by the
central govt.
 The factories exempted as seasonal from the provisions of the act. Act does not
app

5. Act does not apply to
 Mines
 Railway running sheds
 Govt. factories or establishments and Indian naval, military, or air force
 Other Govt. notified exempted establishments

6. ACT AUTHORISATION
 To Promote and measure for health and welfare of INSURED EMPLOYEES (IE)
 Intervene for the rehabilitation and reemployment for disabled / injured
 To appoint inspectors for purposed of the act
 To determine the amount of contribution and relevant verification

7. Medical Benefit Council
 Advise to administration on Medical Benefit, purpose of grants and related matter
 Have power and duties of INVESTIGATION on Empanelled Medical practitioner,
its treatment and attendance
 Perform other duties

8. Employer/ Employee’s Contribution
 It is the principle employer’s responsibility to deposit his own as well as
employee’s contribution in respect of all employees including the contract labour,
into the E.S.I. Account. Non-availability of funds cannot be a ground for non-
payment of contributions under the act. There is no provision to waive the
contribution, damages and interest
 The employer is required to contribute at the rate of 4.75% of the wages paid/
payable in respect of every wage period. The employees are also required to
contribute at the rate of 1.75% of their wages except when the “average daily
wages in a wage period” are equal to or less than Rs.40.

9. Employer/ Employee’s Contribution
 The employer should get his factory or establishments registered with the E.S.I.
Corporation within 15 days after the Act becoming applicable to it, and obtain the
employer’s Code Number. The regional officer will allot a code number to the
employer, which must be quoted in all documents and correspondence.

10. 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

11. Obligation of the Employers
 Get your Factory / establishment registered with in 15 days after the Act becomes
applicable. Submit Form 01 to the Regional office for this purpose. Obtain
Employer’s code No. for use in all ESIC Forms / documents and correspondence
with the offices of the ESI Corporation.
 Fill up Declaration Forms in respect of all coverable employees and submit the
same to the Regional Office/ Local Office of the corporation well before the
‘Appointed Day’ and obtain insurance Numbers from the concerned Local Office/
Regional Office, In respect of newly appointed employees, fill up the declaration
form soon after appointment of such employees and submit the same to the Local
Office Concerned

12. Obligation of the Employers
 Pending receipt of identity cards/ identity certificates you may issue “certificate of
employment” in Form 86 to the covered employee(s) enabling them to avail
cash/medical Benefits
 Pay ESI contribution (Employee's Share @4.75% and the Employer’s share @
1.75% of the wages) with in 21 days of the month following, in which the wages
fall due.
 Maintain an Accident Book as prescribed under the Factory Act / ESI Act.

13. Obligation of the Employers
 Submit an Accident Report to the Local Office / ESI Dispensary concerned
immediately in respect of accidents that could result in death or disablement and
within 24 hours of its occurrence otherwise. Minor accidents which do not cause
absence from work need not be reported.
 Grant leave to insured employees on the basis of sickness certificates issued by
any authorized ESI doctor.

14. ESI Forms & Uses

15. Form 1
 ESI form 1 is declaration from employee to include him or her in Employee State
Insurance Corporation Scheme.
 ESIC Form is a declaration form to be submitted to the nearest ESIC office by
employer. ESIC declaration form has to filled by insured person i.e employee.

16. Form 3
 It’s a return of Declaration form which needs to be filled up by Employer
 In this form the Factory/Establishment needs to declare that the current person is
employed as an employee within the State Insurance Act.

17. Form 12
 Form 12 is mainly used for Accident Report of Employees by Employers.
 In this Form Employer has to fill up the details regarding the injuries which are
been suffered by employees in details manner.

18. Form 37
 ESIC form 37 is also knows as certificate of re employment or continuing
employment.
 When an employee or insured person in ESIC will make 78 days contribution to
ESIC then they are eligible to continue their contribution whenever they rejoins in
new organization.

19. ESIC 86
 ESIC 86 is a declaration form have to be provided by Employer about Whether the
current Employee is working in that particular Factory/Establishment.
 It act as a Proof given by Employer about Employee.

20. Thank You