ESIC – A Complete Social Security Organization for India’s Workforce

The International Labour Organization defines Social Security - as "the security that society furnishes through applicable organization against certain risks to that its members are perennially exposed. These risks are basically contingencies against that a personal of small suggests that cannot effectively give by his own ability or foresight alone or even in private combination along with his fellows. The ESIC is the only social insurance Organisation within the country that covers most of the exigencies (provided in the list of ILO) that are illness, treatment of the employee, maternity, unemployment, work injury, death of employee, invalidness and widowhood.

The ESI scheme is predicated on the Gandhian principle of “contributions as per their ability and benefits as per the requirement”. This principle entitles an insured person who is from the lower wage bracket of the society for an enormous line from benefits by paying the contribution as per the wages he's earning.

Each social insurance payments created under the ESI scheme helps the insured person while not putting any additional burden on his savings or earnings, throughout emergent medical and different contingencies. the advantages being provided by the ESI scheme are:-

1. (a) The sickness benefit is paid to the insured person at the rate of 70% of the typical daily wages up to ninety one days in 2 consecutive profit periods.

(b) Increased benefit (for excision/tubectomy) 100 percent of the typical daily wages is payable for fourteen days for tubectomy and seven days for vasectomy extendable on medical recommendation.

(c) The Extended benefit is allowable at the rate of 80% the average daily wages for 124 days throughout a period of 2 years, long up to 2 years on medical recommendation.

2. Under the disablement profit, the insured person who becomes disabled due to employment injury is paid 90% of the typical daily wages as long as temporary disablement lasts. For permanent or total disability, 90% of daily wages is paid for whole life and for permanent partial disablement; the insured person is paid proportionate to the loss of earning capability as determined by the medical board.

3. Dependants’ benefit is paid at the rate of 90% of the common daily wages sharable in fixed proportion among all dependents if the insured dies due to employment injury. this is often due to the widow for life or till her re-marriage and additionally to the dependent children until the age of twenty five years and additionally to the dependent parents, subject to conditions. In an endeavour to reach out to the beneficiaries and create the system a lot of client friendly, long-run advantages like Permanent disability and Dependants advantages are being credited to the bank account of the beneficiaries through ECS System.

4. The Maternity benefit is paid at the rate of 100% of the common daily wages up to twelve weeks just in case of confinement, up to six weeks just in case of miscarriage. this may be extended by one month on medical recommendation just in case of illness arising out of maternity, confinement and miscarriage. the overall Expenditure incurred throughout 2013-14 on cash profit payments is Rs.598.69 crores from that one will assess the massive support extended by ESIC to its IPs at the time of distress, that otherwise ought to have place additional burden on the low income bracket of the workforce of the country.

5. One among the most important benefits extended by ESIC is Medical profit that provides ‘Reasonable medical Care’ (from primary OPD services, In-patient secondary services to Super Specialty Services) for self and family from day one among getting into insured employment that continues until the insured person remains in insurable employment. Treatment is provided through medical aid and AYUSH system of medicines. ESIC Dispensaries and Hospitals are providing the required medical treatment. Super speciality treatment is provided through in -house super speciality facilities available in a number of ESI Hospital or ESI-PGIMSRs or through large number of advance medical establishments on referral basis through more than a thousand tie-up hospitals across the Country. In such cases, ESIC makes direct payment to the hospitals while not putting any financial burden on the patient or his family.

Medical profit is additionally extended to the widow/ spouse of the deceased/ retired/ superannuated Insured Persons yet on the widow/ spouses of Insured Persons who ceases to be in an insurable employment on account of permanent unfitness, and conjointly to the widows of Insured Persons who are in receipt of Dependant’s benefit.

6. Retirement benefit once an insured person who leaves the insured employment on attainment of the age of superannuation or retires under a voluntary Retirement scheme or takes premature retirement, once being an insured person for not less than five years, shall be eligible to receive medical profit for himself and his spouse subject to production of proof therefrom, and payment of a nominal contribution of Rs.120/- (rupees 100 and twenty only) for one year. In case, the insured person expires, his spouse is entitled to the medical profit for the remaining amount that the contribution was created, and he or she will still receive the medical profit on payment of the contribution of Rs.120/- (rupees 100 and twenty only) every year for any amount.

This medical profit is additionally admittible to an insured person who ceases to be working on account of permanent impairment caused due to employment injury for himself and his spouse on payment of comparable contribution until the date on that he would have vacated the employment on attaining the age of superannuation, had not sustained such permanent impairment.

7. Other benefits include Confinement Expenses for an Insured girl or an ip in respect of his better half just in case confinement happens at an area wherever necessary medical facilities under ESI Schemes are not available, for which Rs.5000/- is paid up to 2 confidents only.

8. Rs. 10,000/- is paid as funeral Expenses just in case of death of an insured person.

9. Vocational education in case of physical unfitness due to employment injury for which the particular fee charged or Rs.123/- per day, whichever is higher is paid as long because the vocational education lasts.

10. Un-employment Allowance under RGSKY is owed just in case of involuntary loss of employment because of closure of factory, retrenchment or permanent invalidness because of non-employment injury and contribution for 3 years before the loss of employment, 50% the average daily wages is owed for a maximum period of twelve months throughout life time. Under RGSKY, just in case of involuntary loss of employment, skill up gradation training is provided for period of 6 months, in order that the science will enhance his skill and choose different jobs.

11. In order to encourage employment of disabled persons, the employers’ share of contribution in respect of such disabled staff is paid by the Central Government for initial 3 years. permanently disabled persons operating in factories and institutions covered under ESI Act and drawing wages up to Rs.25,000/- per month are brought under the scheme w.e.f.1.4.2008.