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    The Employees State

    Insurance Act 1948

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    The Act Provides certain cash benefits to employees

    in case ofsickness, materni ty and employment

    in juryand to make provisions for certain other

    related matters. Its is applicable to employees in a

    wide range of establishments drawing monthly

    wages up to Rs. 1600 (as per 1985 amending Act.)

    The dependants also are now covered for medicalbenefits and they receive pension if a worker dies of

    an employment injury.

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    Main Provisions

    The important benefits provided under the Act

    are:1) Sickness benefit

    2) Maternity benefit

    3) Disablement benefit

    4) Dependents benefit

    5) Medical Benefit

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    Main Provisions

    All employees covered under the Act and drawing

    wages of less than Rs. 6 per day are now entitled to

    receive free medical care. In respect of other,

    contributions have to be made by both employee

    and employer. The employees share in the

    contribution is to be deducted from his wages by the

    principal employer. The rates of contribution are laiddown in Schedule I of the Act and the Government

    can revise them, if necessary.

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    Sickness Benefit

    Sickness signifies a state of health necessitating Medical

    treatment and attendance and abstention from work on Medicalgrounds. Financial support extended by the corporation is such

    a contingency is called sickness Benefit

    Sickness Benefit represents periodical payments made to anInsured Person for the period of certified sickness after

    completing 9 Months in insurable employment.

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    Sickness Benefit

    The Maximum duration for availing sickness

    Benefit is 91 days in two consecutive benefitperiods

    Standard benefit ratethis ratecorresponds to the

    average daily wage of an Insured person duringthe corresponding contribution period and is

    roughly half of the daily wage rate.

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    Extended Sickness Benefit

    Extended Sickness Benefit is a Cash Benefit paid for

    prolonged illness (Tuberculosis / Leprosy, Mental andMalignant diseases) due to any of the 34 Specifieddiseases

    The IP should have been in continuous employmentfor aperiod of 2 years and should have contributed foratleast 156 days in 4 preceding contribution periods

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    Maternity Benefit

    Maternity Benefit is cash payable to an Insured women for the

    specified period of abstention from work for confinement ormis-carriage or for sickness arising out of pregnancy,confinement premature birth of child or miscarriageconfinement connotes labour after26 weeks of pregnancywhether the result issue is alive or dead

    The daily benefit rate is double the sickness Benefit rate and isthus roughly equivalent to the full wages. Benefits is paid forSundays also.

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    Disablement Benefit

    Temporary disablement benefit :

    In case of temporary disability arising out of an employmentinjury or occupational disease.,

    Disablement benefit is admissible to insured person for theentire period so certified by an Insurance Medical officer /

    Practitioner for which IP does not work for wages. The benefit is not subject to any contributory condition and is

    payable at a rate which is not less than 70% of daily averagewages.

    However, not payable if the incapacity lasts for less than 3 days

    excluding the date of accident.

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    2. Permanent disablement benefit

    In case an employment injury or occupational disease

    results in permanent, partial or total loss of earningcapacity,

    Periodical payments are made to the IP for life at a ratedepending on the actual loss of earning capacity as may bedetermined and certified by a duly-constituted Medical

    Board. The rates of Disablement Benefits are determined in

    accordance with the provisions of Rule 57 of ESI(Central) Rules, 1991.

    Disablement Benefit

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    Dependants Benefit

    Dependents Benefit is a monthly pension payable to the eligible dependentsof an insured person who dies as a result of an Employment Injury or

    occupational disease Beneficiaries and Duration of benefit

    a). Widow / widows during life or until remarriage

    b). Legitimate or adopted son until age 18 or if legitimate son is infirm, tillinfirmity lasts.

    c). Legitimate or adopted unmarried daughter until age 18 or until marriage,whichever is earlier, or if infirm, till infirmity lasts and she continues to beunmarried.

    In the absence of any widow or legitimate child, the benefit is payable to aparent or grandparent for life, to any other male dependent until age 18 or toan unmarried or widowed female dependent until age 18.

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    Main Provisions

    The standard benefit rates prescribed under various

    schemes also can be revised. Medical care is

    provided through hospitals set up under the Act asalso through reservation of beds in existing


    The Act also provided for setting up special courts by

    the State Governments to decide disputes and toadjudicate claims.

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    The Employees State Insurance Corporation

    is created under the Act to administer thevarious provisions.

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    At the end of march 1983, 88950 employers

    and 62.72 lakh employees were coveredunder the Act.