The Employee State Insurance Act of 1948 provides certain benefits to insured employees such as sickness, maternity, and employment injury benefits. The Act established the Employee State Insurance Scheme to protect employees against hazards like sickness, maternity, disability, or death from employment. The scheme applies to factories, shops, hotels, restaurants, cinemas, road transport, and newspaper establishments with 10 or more employees. It provides benefits like sickness, disablement, dependent, medical, funeral, and maternity benefits to insured employees. Disablement benefit is paid to employees injured at work who are temporarily or permanently disabled or contract an occupational disease for 3 or more days.

1. THE EMPLOYEES’ STATE
INSURANCE ACT,1948

2. EMPLOYEE STATE
INSURANCE SCHEME…
• Mission statement :
To provide for certain benefits to employees in case of
sickness, maternity and employment injury and to make
provisions for related matters.
The ESI Scheme is an integrated measure of “Social INSURANCE” come to the life
through the employees' State Insurance Act – 1948, and is designed to complete the task
of protecting “EMPLOYEES” as defined in ESI ACT – 1948, against the hazards of Sickness,
Maternity, Disablement or Death due to Employment injury and to provide full Medical
care to insured persons and their families.

3. APPLICABILITY OF THE ESI ACT:
• Under Section 2(12) The Act is applicable to the “Factories” employing 10 (Ten) or more
persons irrespective of whether power is used in the process of manufacturing or not.
• Under Section 1(5) of the Act, the Scheme has been extended to Shops, Hotels,
Restaurants, Cinemas including preview Theatre, Road motor transport undertaking and
Newspaper establishment employing 20 (Twenty) or more persons.
• Further, u/s 1(5) of the Act, the Scheme has been extended to private Medical Institution
and Educational Institutions employing 20 (Twenty) 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) w.e.f:- May 01,2010.
• AREAS COVERED
• The ESI Act applicable across the length and breadth of the India.

4. 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 insured persons or their dependants.
The following benefits are provided under section 46
Sickness benefit.
 Disablement benefit
 Dependents benefit
 Medical benefit
 Funeral expenses
 Maternity benefit
 Sickness benefit

5. DISABLEMENT BENEFIT
 It is payable to an employee who is injured in the course of his
employment and is permanently or temporarily disabled or
contacts any occupational disease.
 A person who sustains temporary disablement for not less than
 3days (excluding the day of accident) shall be
 entitled to periodical payments as may be prescribed by
 the central govt.