What Is Employees’ State Insurance Scheme?
The Employees' State Insurance (ESI)
Scheme is a social security scheme initiated by the Government of India. It
aims to provide coverage to workers in order to protect them from various
health-related contingencies that may affect their earning capacity or result
in a loss of income. The scheme offers medical care, cash benefits, and other
essential services to insured workers and their dependents. Additionally,
maternity benefits are provided to the beneficiaries.
Employees State Insurance Act, 1948:
The Employees' State Insurance Act, 1948, commonly known as the ESI Act, was
enacted by the Parliament of India as the first major legislation on social
security for workers after the country gained independence. The act extends
medical cover and other benefits to employees working in factories, business
establishments, and various organizations such as hotels, road transport,
cinemas, newspapers, educational institutions, medical institutions, and shops
where ten or more persons are employed.
Coverage Under Employees’ State
Insurance Scheme: The ESI scheme was initially implemented in Kanpur and Delhi
in 1952 and gradually extended throughout the country as industrialization
progressed. As of March 31, 2019, the ESI Act covers approximately 12 lakh
factories and business establishments, benefiting over 3 crore workers or
family units. The scheme provides coverage to more than 13 crore beneficiaries.
What Is Not Covered Under EmployeesState Insurance Scheme? The ESIC scheme does not cover employees earning more
than Rs. 21,000 per month. For persons with disabilities, the maximum wage
covered is capped at Rs. 25,000 per month. In Maharashtra and Chandigarh, the
threshold for coverage remains at 20 employees instead of 10 employees, as is
the case in other states and union territories.
Infrastructure of Employees StateInsurance Scheme (ESIS): Since its inception in 1952, the ESI Corporation has
established numerous hospitals, annexes, dispensaries, and clinics to provide
medical services to insured workers. The ESI infrastructure network includes
hospitals, annexes, dispensaries, Ayush units, panel clinics, occupational
disease centers, branch offices, and pay offices spread across different
locations.
Features And Benefits of Employees
State Insurance Scheme (ESIS): The ESI scheme offers several features and
benefits to insured workers and their dependents. Some of the salient features
include:
Medical: The scheme covers the insured
workers' medical expenses through affordable healthcare facilities from the day
of their employment.
Maternity: Beneficiaries can avail
100% of their daily wages for up to 26 weeks, with the possibility of extension
based on medical advice. Different durations of benefits are provided in cases
of miscarriage or adoption.
Disability: Temporary disablement
entitles the worker to receive 90% of their monthly wage until recovery, while
permanent disability allows the worker to receive 90% of their monthly wage for
life.
Sickness: During medical leave, the
scheme provides cash benefits equivalent to 70% of the daily wage for a maximum
of 91 days, which can be availed in two consecutive periods.
Unemployment: Involuntary loss of
non-employment or permanent invalidity due to injury allows the worker to
receive a maximum of 50% of the average monthly wage for 24 months.
Dependents: The scheme provides
financial assistance to dependents of the insured in case of illnesses or
injuries sustained at work. Monthly payments are distributed among surviving
dependents.
Funeral Costs: An amount of Rs. 15,000
is provided by the ESIC towards funeral costs, payable to the dependents or the
individual performing the last rites of the insured.
Confinement Costs: In cases where
required medical care is not available under the scheme at the location of
confinement, the insured or dependent
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1.When
was the Employees' State Insurance (ESI) Scheme initiated?
A. 1947
B. 1952
C.1948
D.1950
Ans:
C. 1948
2.What
is the main objective of the Employees' State Insurance Scheme?
A.Providing financial assistance to retired employees
B. Offering medical care and cash benefits to insured workers
C.Providing housing facilities to workers
D.Offering scholarships to workers' children
Ans:
B.Offering medical care and cash benefits to insured workers
3.What
is the coverage criteria for the Employees' State Insurance Scheme?
A.Covers all workers in India
B.Covers workers earning up to Rs. 25,000 per month
C.Covers workers employed in factories and business
establishments with ten or more employees
D.Covers workers employed in all organizations, regardless of
the number of employees
Ans:
C.Covers workers employed in factories and business establishments with ten or
more employees
4.Which
act governs the Employees' State Insurance Scheme?
A.Employees' Provident Fund Act, 1952
B.Employees' Compensation Act, 1923
C.Employees' State Insurance Act, 1948
D.Employees' Pension Scheme, 1995
Ans:
C.Employees' State Insurance Act, 1948
5.What
is the maximum wage limit for coverage under the Employees' State Insurance
Scheme? A.Rs. 15,000 per month
B.Rs. 20,000 per month
C.Rs. 21,000 per month
D.Rs. 25,000 per month
Ans:
C.Rs. 21,000 per month
6.What
does the Employees' State Insurance Scheme provide in case of temporary
disability?
A.100% of daily wages for
up to 26 weeks
B.90% of monthly wage until recovery
C.Cash benefits equivalent to 70% of daily wage for a maximum of
91 days
D.50% of average monthly wage for 24 months
Ans:
B.90% of monthly wage until recovery
7.What
is the amount provided by the ESIC towards funeral costs?
A.Rs. 10,000
B.Rs. 15,000
C.Rs. 20,000
D.Rs. 25,000
Ans:
B.Rs. 15,000
8.Which
of the following is not part of the Employees State Insurance Scheme
infrastructure?
A.Hospitals
B.Annexes
C.Dispensaries
D.Banks
Ans:
D.Banks
9.In
which year was the ESI scheme initially implemented in Kanpur and Delhi?
A.1948
B.1950
C.1952
D. 1960
Ansr:
C.1952
10.What
benefits are provided under the ESI scheme in cases of maternity?
A.50% of the daily wage for 24 months
B.100% of the daily wage
for up to 26 weeks
C.70% of the daily wage for a maximum of 91 days
D.90% of the monthly wage until recovery
Ans:
B.100% of the daily wage for up to 26 weeks
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