Benefit under the Employees’ State Insurance is given to employees drawing wages not exceeding Rs. 1,600 per month. Medical care is provided in kind of cash, maternity, employment, injury and pension for dependants on the death of a worker because of injury.
Full medical care including hospitalisation is also being progressively made available to the members of the family of the insured persons.
Under this Act a Corporation consisting of representatives of the workers, health officers (doctors, etc.) and members of Parliament can be constituted.
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A Standing Committee is established to manage the affairs of the Employees’ State Insurance Scheme.
A Medical Benefit Council can also be set up for providing advice relating the health. Its members are taken from Health Department.
The amount of subscription which is charged from the members of E.S.I. is given in the Act.
Industrialists, Central Government, State Government (in the form of grants and subsidy) give money to the E.S.I. In addition some individuals and agencies donate money to E.S.I.
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All this money is spent for the welfare of the workers.
Till recently benefits under this scheme were being given to workers on non-seasonal factories using power and employing 20 c more persons. But now it is being gradually extended by the state governments to smaller factories, hotels, restaurants, shops, cinemas, etc. employing 20 or more persons. It covers employees drawing wages not exceeding Rs. 1,000 per month.
As on December 1981, there were 77 ESI hospitals and 37 attached buildings with 17,004 beds and 1,073 dispensaries under the scheme. The number of employees covered was about 63.62 lakhs.
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The Employees’ State Insurance Act was framed to provide social insurance (social security benefits) to the labourers. It is a legislation which aims at bringing about social and economic justice to the poor labour class. Labour welfare is its main objective.
The Employees’ State Insurance Act is applicable to the whole of India. The Central Government has empowered to enforce different provisions of the Act in different states or part thereof on different dates.
Non-seasonal factories employing 20 or more employees and using power are covered under this Act. It covers employees who draw Wages up to Rs. 1,600/- per month.