Emergence of Employee State Insurance Act:

Right from 1927 onwards a health insurance scheme for the industrial workers was considered as an
essential requirement. The Royal Commission of Labor in its report suggested such a scheme in 1931. In
1943 the task of designing such a scheme was given to Prof B P Adarkar. Prof Adarkar prepared and
submitted his report to the Government in December 1944. The Adarkar Plan along with various other
suggestion were instrumental the emergence of Workmen State Insurance Bill 1946. This bill was
referred to a select committee who made some modifications and also changed its name to Employee
State Insurance Bill. The Employee State Insurance Act was passed by the Government on 19 April 1948.
th

The Scheme under the Act aims at providing for certain cash benefits to employees in the case of

sickness, maternity benefit, employment injury, and medical facilities in kind, and to make provisions for
certain other matters in relation thereto. The Act was amended from time to time

The administration of the scheme is entrusted to corporate body, consisting of the

Minister of Labor at the centre as its chairman, Union Health Minister as its vice chairman and the
representatives of the state government employers and employees and medical profession nominated by
the Central government. The affairs of the corporation are directly administered by a
constituted from among its members. There is also a medical benefit council to give
advice on medical care.

a) All factories excluding seasonal factories employing 10 or more persons and working with
or without power
b) Any Establishment which the Govt. may specifically notify
c) Shop employing 20 or more persons.
d) Hotels and restaurants
e) Cinema houses
f) News paper establishments
g) Road motor transport undertakings employing 20 or more persons.
As soon as the above conditions are fulfilled the employer should furnish the details in form 01 to ESI
office
for registration under the ESI Act, 1948 & Obtaining of the employers code No. and subsequently should
apply for separate subcode number in respect Branches all over India.

Registration of a factory/establishment with the Employees State Insurance Corporation is the Statutory
responsibility of the employer under Section 2A of the Act

The Employer is relieved of his legal obligations

towards his employees by getting his unit covered under the
ESI Act, 1948.
1) He gets exemption from the applicability of a number of enactments like Workmens Compensation Act,
1923, Maternity Benefit Act, 1961.
2) The employer gets rebate in Income Tax for the amount of contribution paid to ESIC as Employers
share
of contribution.
3) The ESI scheme also takes care of the health of the family members of the workers and also ensures
the
workers against industrial accidents and employment injury including occupational diseases.

Thus, it is always beneficial for the employers to get themselves covered under the scheme.
The employer should ascertain the liability towards ESI dues, while taking over the ownership of any
factory/ establishment by purchase, gift, lease or license or in any other manner what so ever as new
owner is liable to discharge the past liabilities, if any.
i Any person employed for wages (up to Rs. 15000/w.e.f. 01/05/2010) a month, excluding
remuneration
for overtime work in or in connection with the work of a factory or establishment.

ii) Any person who is classified as disabled employee and working in a private sector, with monthly
wages upto Rs. 25000/per month provided they are appointed on or after 01/04/208.

On Earned Gross
Salary including
overtime & any
allowance which
is monthly
payable

Employee
Contribution

Employer
Contribution

Total

1.75%

4.75%

6.5%

If the average daily wage worked out turns out to be Rs100/or less, then contribution will not be

recoverable from the person for the wage period. The main sources of finance are the contributions from
employers and employees and one eighth share from the Government towards the cost of medical care
Corporation generates its own resources and neither receives nor does it need any subsidy. A contribution
paid under the Act are to be deposited into funds called the Employees State Insurance Fund.
)
Monthly Challan Employer should calculate monthly contribution and deposit monthly challan in State
Bank of India on or before 21 st of following month for which contribution is due. Separate challan should
be prepared for each Branch. Half Yearly Return Employer should Prepare Half Yearly Returns in Form 5
in respect of Regd. Office as well as for Branches and submits it to the respective Branch offices. (The
corporation vide its circulars dated 08/11/2011 has asked Employer, not to submit return for CPE
30/09/2011, who have created chalans through system. This trend may continue in future)

April to September

11 th November

October to March

12 th May

January to June
July to December

In case of a person who became an employee with in the meaning of the Act for
the first time, the first contribution period will commence from the date he enters
into insurable employment for the first time in the contribution period current on
that
date
and

For example if a person joined insurable employment on 5th January, his first
contribution period will be from 5th January to 31st March and his
corresponding benefit period will be from 5th October to 31st December
1) Each New employee including contractors employee to be
enrolled on line in ten working days from date of joining. 2) Submission of
Accident Report in Form 16 to the Branch office of ESI Corporation within 24 hrs
in case of any industrial accidents and employment injury including occupational
diseases happens within factory premises that could result in death or
disablement. Of the I.P.

Right to receive payment of any benefit under the Act is not transferable.
Employer shall not dismiss, discharge or reduce the wages or otherwise
punish a covered employee during the period he/she is in receipt of Sickness
Benefit or Maternity Benefit etc.
By reason of his liability to pay his share of contribution under the ESI
Act, no employer shall directly or indirectly reduce the wages of a covered
employee.
Right to register their grievances / complaints at any level for immediate
redressel.
Right to approach ESI Court against any action/decision of the Medical
Board etc
Cash Benefits payable under the Act are not liable to attachment or sale
in execution of any decree or order of any court

In case an insured worker leaves his station on duty or otherwise he/she is

eligible for treatment at any ESI medical unit, subject to production of
identity card and a certificate from Employer in Form 105.
Dear Insured Persons
Please....
Do not add any noneligible person to your Declaration Form for purpose of
medical facility etc.
Do not deface or tamper with your Identity Card.
Do not lend your Identity Card to anyone else.
Do not fake illness or injury for claiming any benefit.
Do not force your doctor for wrong certification etc.

Do not approach touts for any favour from ESIC

Do not tamper with your Medical Certificate.
Do not pay for any ESIC Forms. These are supplied free of cost from Local
Offices.
Do not forget to add/delete a family member in your declaration in the event of
birth/death.
Do not forget to carry Form 105 duly signed by your employer on outstation
journeys. This will enable you to avail ESI facilities anywhere. FOR BETTER
AND QUICKER SERVICES
Please Remember
Identity Card is your visa to social security; protect it from loss or damage.
In case of loss of Identity Card, report the matter to your Local
Office/Dispensary.
Fill in all Claim Forms properly; avoid mistakes.
Count your money before leaving Local Office cash counter.
Apply for examination by Medical Board immediately after your TDB terminates.
Follow referral procedures for treatment except in emergencies, when time
factor is critical.
If you have a grievance, contact Local Office Manager/Dispensary incharge to
which you are attached for

quick redressal.
Be courteous with ESI staff and expect courtesy and
compassion from them always

Form 01

Form 1

Employers Registration
Form

To R.D. Or Dy R.D. with in 15 days after

the Act becomes applicable

To get factory/
establishment
registered

Declaration Form

(On line system generated). with in 10

days from DOJ

To register the
employees &
get Insurance
No. visa vis
TIC & PIC
In case of
pending
TIC/PIC to
enable the I.P.
to avail medical
benefit

Form 86

Certificate of Employment

Issuance to I.P.

Form 1B

Changes in family
Declaration Form

To B.O. a/w TIC/PIC with in 15 days of

any change in family particulars

ESIC37

ESIC53

Certificate of reemployment or continuous

employment

Change of Dispensary

ESIC105

Certificate to avail M.B.

out of station

ESIC72

Application for duplicate I.

card

Issue to I.P.s & when I.M.P. demands

To new I.M.P.

Issue to I.P.

To B.O.

Any additions
or deletions in
the family
particulars of
an I.P.
To re entitled
I.P.for medical
benefit in case
of he had been
disentitled on
reentry or non

submission of
R.C.

In case I.P.
needs a
change of
dispensary due
to any valid
reasons
Enables I.P. to
get Medical
treatment in
ESI
dispensaries /
Hospitals
whenever he
goes out of
station on duty
or leave.
I.P .in need of
a duplicate
I.Card

Form 5

Return of Contribution

To B.O.

Form 16

Accident Report

To B.O.

Usefullink:-http://esicmaharashtra.gov.in

Its mandatory
to submit R.C.
for every
completed C.P.
within
stipulated time