Highlights of Employees State Insurance scheme

1. What is the ESI Scheme? How does it help the workers and their dependents in time of crisis/distress?
Answer: Employees State Insurance scheme as a multi-dimensional social security scheme embodied in the employees State insurance Act 1948 design to provide socio-economic protection to worker population, and their dependents, covered under the scheme decides full medical care for self and family members, the insured person are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of wages earning capacity. Women are entitled to maternity benefits for 26 weeks. Dependent of insured persons who died because of employment injury or occupational hazard are entitled to dependent benefit. In addition, the ensured person are also entitled to certain other need based benefits like unemployment allowance ,rehabilitation allowance, physical rehabilitation, confinement expenses etc.
2. Who administers the ESI scheme in the country? What is the entire organizational set up of the body administering the scheme?
Answer: The ESI Corporation, a body corporate administers the ESI Scheme in accordance with the provision of the ESI Act, 1948. The ESI Corporation consist of a chairman, vice-chairman, representative of central Govt., one person representing each of the State in which the ESI Act is enforced , representatives of employers, person representing medical professional and 3 members of parliament, director general of the corporation. Then there is a standing committee constituted from amongst the members of the corporation and a medical benefit council which help the ESI Corporation in exercising its function.
3. What is the rate of contribution under the ESI Scheme?
Answer: The rate of contribution as on date is as under:
Employers Contribution 4.75% of wages of an employee;
Employee Contribution 1.75% of wages of an employee;
However, for the newly implemented areas the rate of contribution for First two years from the date of implementation is as under;
Employer Contribution 3% of the wages of employee;
Employee Contribution 1% of the wages of employee.
4. What is the coverage of the scheme country wide? Does it have a pan Indian presence as on date?
Answer: As on date the ESI Scheme is implemented in 33 States/Union Territories in the country. Total no. of employers registered under the act is 7.83 lakh and the total no. of insured persons is 2.13 crore.
5. When was the Scheme implemented in the State of Jammu and Kashmir and how has it progressed in the State so far?
Answer: ESI Scheme was first implemented in the State of J&K on 16.10.1989 covering about 7000 workers in 3 centers at Jammu, Kathua and Srinagar. From 01.08.2016 the Scheme was implemented in the entire geographical area of 8 districts viz. Jammu, Kathua, Samba, Reasi, Udhampur, Srinagar, Budgam, Pulwama. Recently from 01-04-2017 the scheme has been extended to Municipal areas ( District headquarters) of 14 remaining districts of the State namely Doda, Kishtwar, Poonch, Rajouri, Ramban, Anantnag, Baramulla, Kupwara, Bandipora, Gandherbal., Kulgam, Shopian, Leh and Kargil. In J&K region, as on date, about 4500 factories and establishments employing about 120000 insured persons (total beneficiaries 48000) are covered under the scheme where the recent extension of the scheme to the new geographical areas a substantial no. of new factories/ establishments and employees are expected to come within the umbrella of social security under the ESI Act.
6. What types of industries/Establishments are coverable under the ESI Act?
Answer : The scheme is extended to manufacturing establishments and the variety of others non-manufacturing establishments like shops, hotels, preview theatres, newspapers establishments, road, motor, transport undertakings, educational institutions, private medical institutions employing 10 or more persons.
7. What is the benefit delivering system under the ESI Scheme in the State of J&K?
Answer : Cash benefits to the insured persons and their dependents to the insured persons and their dependents is provided through 3 branch offices at Jammu, Kathua, Srinagar and 3 pay offices at Udhampur, Samba and Katra. Medical benefit is provided through a 50 bedded ESI model hospital at Bari Brahmana , samba district & 9 ESI dispensaries, 4 in Srinagar, 2 in Kathua and 3 in Jammu in rest of the places medical benefit is provided through insured medical practitioners’. Further tie-up arrangement for secondary care and super specialty treatment has been made with a no. of nursing home/in the region.
8. A scheme called Spree was launched recently by the ESI Dept.? What are the various features of the scheme? Has it been able to achieve the desired results?
Answer: For the purpose of extending social security to the entire workforce in the country by ESI corporation launched a special drive, titled as Spree, “Scheme to promote registration of employers/employees from 20-12-2016 to 31-03-2017 the one-time drive extended Social security benefits to all the edible under the act, who had till then been kept out of the ESI coverage.
The salient features of scheme are as under:
1. The employers registering during the period will be treated as covered from the date of registration or as declared by them.
2. The newly registered employees shall be treated as covered from the date of the registration.
3. This will not have any bearing on actions taken/required under ESI Act, if any, prior to 20th December 2016. The above period witness significant coverage of employers/employees across the country. On persistent demand of employers/employees association to extend the scheme for further period beyond 31-03-2017. The ESI Corporation scheme 01-04-2017 to 03-06-2017.
9. What are the future plans of ESI Corporation regarding the State of J&K?
Answer: J&K is amongst the first State in the country where the ESI Scheme has been imp[lamented in all its 22 districts.
It is also amongst the first few States in the country where an autonomous body at the State level to function as subsidiary ESI Corporation has been approved to be formed for better and efficient administration of medical benefits in the State for the benefit of insured persons and their families. In addition to above the ESI Corporation plans to open 3 district offices and 09 branch offices at following places in the State.
District Offices
1. Udhampur (Already started functioning partially)
2. Srinagar
3. Rajouri
Branch Offices
(Jammu Division)
1. Katra
2. Rajouri
3. Doda
Branch Offices
(Kashmir Division)
1. Anantnag
2. Pulwama
3. Bandipora
4. Baramulla
Branch Offices
(Ladakh Division)
1. Leh
2. Kargil

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