Are you curious to learn, what is the purpose of the Employee State Insurance scheme fund? If you are confused and have a doubt, ‘is ESIC a government or private’, then let me elucidate for you.
The Employees’ State Insurance Act 1948 was proclaimed by the Government of India through the Parliament. The objective of the ESI scheme was to empower the medical and social security of the employees and workers during health-related crisis situations like sickness, maternity, disability and death. Continue browsing to learn more about the ESI scheme’s eligibility, coverage and benefits.
What Are the Documents Required for Registration of Employees’ State Insurance Scheme?
In the beginning, the ESIC scheme was inaugurated in Kanpur and Delhi on 24th February 1952 by the former PM Pandit Jawahar Lal Nehru. The set of documents required for ESI registration are:
The Registration Certificate of the shop or establishment in case of a partnership or a company
List of the employees working in the establishment
Compensation details of all employees
PAN card details of the Business entity and all the employees
Cancelled cheque from the company’s bank account
List of shareholders and directors of the company
Who Is Eligible for the ESIC Scheme?
The ESIC scheme covered all the workers and employees of the factories and enterprises like Road Transport, Hotels, Restaurants, Cinemas, Newspapers, Educational Institutions, Banks and Shops wherein 10 or more people are employed. As of 31 March 2019, the ESIS has been executed in 843 centres in more than 33 states and Union Territories.
The ESIS now covers nearly 12 lakh factories and establishments and benefits more than 2.2 crore workers or family units. Presently, more than 9 crore beneficiaries reaped benefits from this ESIS. Also, in Maharashtra and Chandigarh, the threshold limit for coverage of the establishments is still 20 whereas in other states, it’s for 10 employees.
What Is the Salary Limit for ESIC?
The ESI scheme is financed by contributions from both employees and employers. The employer contributes 4.75% of the wages payable to the employees while the contribution of the employees stands at 1.75% of the payable wages.
The ESIC has decided to provide social security cover to the employees earning up to Rs. 21,000/- a month. In case of handicapped or disabled persons, the maximum wage is limited to Rs. 25,000/- per month. The benefit is provided to the insured as well as their dependents.
What Are the Main Features & Benefits of ESIC for Employees?
Below are the salient features and benefits that ESIC offers to the employees:
Medical: Under the scheme, the worker is covered from day 1 of employment and their medical expenses are covered through affordable and reasonable medical facilities.
Maternity: During maternity leave, the assignee can avail 100% of the daily wages up to 26 weeks at the time of childbirth. In the case of adoption, the ESIC maximum claim limit is 12 weeks and for miscarriage, the benefit is for 6 weeks.
Disability: The worker can avail 90% of the monthly wage until recovery in case of temporary disability. But if the employee is permanently disabled, then the claim limit is for entire life.
Sickness: The worker can take medical leave and avail 70% of the daily wages for a period of 91 days.
Unemployment: The ESI scheme offers approx. 50% of the monthly wages for a time of 24 months.
Cremation costs: If the insured died, then the dependents will get an amount of Rs. 15000 as the funeral cost under this scheme.
Similarly, the ESIS also offers confinement costs, coverage for vocational and physical rehabilitation and old age medical care.
Conclusion
The ESI scheme provided by the Government offers many benefits to the employees and it accomplishes the task of providing financial and social support in case of medical emergencies. However, having an additional health plan ensures you are having a sufficient amount of money in covering the medical expenses.
