ESIC Full Form

Full Form of ESIC

ESIC stands for Employees’ State Insurance Corporation is a legislative body under the ownership of the Ministry of Labor and Employment, Government of India. The finance is administered by the Employees’ State Insurance Corporation (ESIC) as per rules and regulations specified in the ESI Act 1948.

The Employee State Insurance Corporation Scheme gives members financial security in case of a premature health-related contingency. In addition, the scheme tends to include medical benefits, disability benefits, maternity benefits, unemployment grants, etc.

History

In March 1943, the Government of India appointed Professor B.P. Adarkar to produce a report on the health insurance system for industrial workers. The report became the foundation for the Employment State Insurance (ESI) Act of 1948. 

The proliferation of the Employees’ State Insurance Act, 1948 visualized an integrated need-based societal insurance scheme that would guard the interest of workers in possibilities, for instance, sickness, maternity, temporary or permanent physical disablement, demise due to employment injury ensuing in loss of wages or earning ability. 

Moreover, the Act ensures plausibly good medical care to workers and their instant dependents. Following the proliferation of the ESI Act, the Central Govt. placed the ESI Corporation to oversee the Scheme. The Scheme subsequently was first executed at Kanpur and Delhi on 24 February 1952. The Act additionally released the employers’ responsibilities under the Maternity Benefit Act, 1961 and Workmen’s Compensation Act, 1923. The assistance provided to the employees under the Act also complies with ILO conventions. 

The Act was originally planned for factory workers but afterwards became valid for all establishments having ten or more workers. As of 31 March 2016, the entire beneficiaries are 82.8 million. 

ESI Act

Employees’ State Insurance Corporation (ESIC), instituted by ESI Act, is an autonomous corporation under the Ministry of Labor and Employment, Government of India. As it is an authorized body, the corporation can obtain loans and take steps for discharging such loans with the preceding sanction of the central government. It can obtain both movable and immovable property, and all revenues from the property shall vest with the corporation. 

The corporation can place hospitals separately or in association with state government or other private entities. Still, the majority of the dispensaries and hospitals are run by associated state governments.

Benefits

According to section 46 of the ESI Act, 1948, six benefits are predicted to its subscribers:

1. Medical assistance
2. Sickness assistance
3. Maternity assistance
4. Disablement assistance
5. Dependants assistance
6. Other benefits

For all employees making ₹21,000 (US$280) or less per month as wages, the employer contributes 3.25%, and the employee contributes 0.75%, overall share 4%. This fund is administered by the ESI Corporation (ESIC) as per the rules and regulations specified therein the ESI Act 1948, which supervises medical and cash benefits to the employees and their families. ESI scheme is a social security scheme for employees in the organized sector.

The employees listed under the scheme are allowed medical treatment for themselves and their dependents, unemployment cash assistance in certain possibilities, and maternity benefit for women employees. Furthermore, in case of employment-related disablement or demise, a term for disablement assistance and a family pension correspondingly.

Outpatient medical facilities are obtainable in 1418 ESI dispensaries and through 1,678 registered medical practitioners. Inpatient care is offered in 145 ESI hospitals and 42 hospital annexes with 19,387 beds. Additionally, numerous state government hospitals also have beds for the private use of ESI Beneficiaries. Cash benefits can be enjoyed in any 830 ESI centers all over India.

Recent years have seen a growing information technology position in ESI, with the beginning of Pehchan smart cards as a part of Project Panchdeep. Besides insured workers, poor families entitled under the Rashtriya Swasthya Bima Yojana can also enjoy ESI hospitals and dispensaries. ESI Corporation moreover runs medical, nursing, and paramedical schools in some ESI hospitals throughout India.

Medical and Dental Colleges

Employees’ State Insurance Corporation operates medical, dental, nursing, and paramedical schools in many locations across India. Currently, there are 11 medical colleges and two dental colleges instituted by the ESI Corporation. These colleges divulge students based on marks acquired in the competitive examinations carried at the central level, the National Eligibility cum Entrance Test (NEET-UG).

There are 8 Medical Colleges administered by the Ministry of Labor and Employment (India) under the ESI Corporation. They are:

1. ESIC Medical College and PGIMSR, K. K. Nagar, Tamil Nadu
2. ESIC Medical College and PGIMSR, West Bengal
3. ESIC Medical College and PGIMSR, Telangana
4. ESIC Medical College and PGIMSR, Karnataka
5. ESIC Medical College and PGIMSR, Haryana
6. ESIC Medical College and PGIMSR, Karnataka
7. ESIC Medical College and Hospital, Rajasthan
8. ESIC Medical College and Hospital, Bihar

The management of the remaining three medical colleges has been given over to the concerned State Governments under various MoU. They were launched by the ESI Corporation but have been administered by the state government since commencement. They are:

1. Shri Lal Bahadur Shastri Government Medical College & Hospital, Himachal Pradesh.
2. Government Medical College & ESI Hospital, Coimbatore
3. Government Medical College, Kerala.

The Dental colleges managed by the ESI Corporation are situated in New Delhi and Gulbarga, Karnataka.

The Government of India intends to build 12 more ESI Medical Colleges in various cities across India in the forthcoming years.

New Amendment

The Employees’ State Insurance Corporation (ESIC) lifted the monthly wage perimeter to Rs. 21,000 from the present Rs. 15,000, for exposure with effect from 1 January 2017. The contribution rate was decreased from 6.5% to 4% (employer’s share 3.25% and employee’s share 0.75%) effective from 1 July 2019.

Conclusion

Employees’ State Insurance Corporation (ESIC) is a government organization that supervises the Employees’ State Insurance (ESI) scheme. The scheme principally provides medical and financial aid to the employees and their families. The aid is given when an employee cannot execute his duties due to sickness, employment injury, or maternity.