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What is the full form of ESI?
ESI stands for Employees’ State Insurance, a health insurance plan that offers Indian workers medical and cash benefits. The ESIC, an autonomous corporate body under the Ministry of Labor and Employment of the Indian Government controls and manages ESI.
History of ESI
- Established on 24 February 1952 and acts like an Indian employee health insurance service.
- In March 1943, Professor B.N. Adarkar prepared a report of Indian laborers on the health insurance schemes.
- This caused the establishment of the ESI Act, 1948 that stated the need to protect Indian workers from contingency plans.
- First implemented in Kanpur, it was first made for laborers only. Later it extended to all employees earning less than 15000/- Rs.
Key objectives of ESI
1. The ESI Act, 1948 provides financial compensation during contingencies.
2. It offers medical benefits to Indian laborers who serve in factories and companies.
Organizations covered as per ESI
1. Mandatory all over India except in Arunachal Pradesh and Manipur.
2. Is being expanded to preview theatres, cinemas, hotels, restaurants, stores, newspaper outlets, etc.
3. Available in medical establishments and private educational institutions with at least ten workers.
Required documents for ESI registration
Following are the document necessary for ESI registration:
1. PAN Card of the company
2. Companies address proof records.
3. Copies of the registration certificate (if the corporation is Private Limited).
4. A detailed list of employees and their monthly income.
5. List of associates, directors, and shareholders.
6. bank statements and when it started its operations.
ESI Benefits
ESI covers the medical cost of an Indian worker during an accident, impairment, sickness, pregnancy, or death in the workplace and the economic benefit during unemployment. Some of the benefits of ESI are:
1. Physical Disability Benefits
2. Maternity Benefits
3. Medical Benefits
4. Sickness Benefit
5. Dependent Benefit
6. Unemployment Allowance.