Employees State Insurance Act 1948

Employees State Insurance Corporation (ESIC):

Section 3 of the Employees’ State Insurance Act, 1948, provides for the establishment of Employees’ State Insurance Corporation  by the Central Government for administration of the Employees’ State Insurance Scheme in accordance with the provisions of this Act.

ESIC was set up on 1st October, 1948 by the Central Government in accordance with Section 3 (1). The Corporation is a body corporate, having a separate legal entity, with a perpetual succession and a common seal. It can sue and be sued in its own Constitution of ESI Corporation (Section 4) : The ESI Corporation consists of the following members, namely:

 A Chairman to be appointed by the Central Government.

A Vice chairman to be appointed by the Central Government.

 One person each, representing each of the state in which this Act is in force to be appointed by the State Government concerned.

One person to be appointed by the Central Government to represent the Union Territories.

Ten persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognized for the purpose by the Central Government.

Ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognized for the purpose by the Central Government.

Two persons representing the medical profession to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognized for the purpose by the Central Government; Three members of Parliament and out of three such members two shall (i) be members of Lok Sabha and one shall be a member of Rajya Sabha elected respectively by the members of the House of the People and the members of the Council of States.

The Director General of the Corporation, ex officio. Term of office : The term of office of members of the corporation representing employers, employees, medical profession, and Lok Sabha and Rajya Sabha shall be four years, commencing from the date on which their nomination or election is notified. Other members of the corporation shall hold office during the pleasure of the Government appointing them.

Powers of the Employees State Insurance Corporation [ESI Corporation]

ESI corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post the maximum monthly salary of which exceeds such salary as may be prescribed by the Central Government. [Section 7]

 ESI Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of the insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur, in respect of such measures, expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government. [Section 19]

ESI Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefits Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations.  [Section 25]

ESI Corporation may, subject to such conditions, as may be prescribed by the Central Government, acquire and hold property both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established. [Section 29 (I)]

ESI Corporation may, from time to time, invest any moneys which are not immediately required for expenses properly defray able under this Act and may, also, from time to time re -invest and realise such investments, subject to such conditions as may be prescribed by the Central Government. [Section 29. (2)]

ESI Corporation may, with the previous sanction of the Central Government and on such terms as may be prescribed by it, raise loans and take measures for discharging such loans. [Section 29 (3)]

ESI Corporation may constitute for the benefit of its staff or any class of them, such provident, or other benefit fund as it may think fit.[Section29 (4)]

Duties of the Employees State Insurance Corporation [ESI Corporation]

Section 32 provides that the ESI Corporation shall, in each year, frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf.

Section 33 requires that the ESI Corporation shall maintain correct account of its income and expenditure in such a way as prescribed by the Central Government.

 As per Section 34, the accounts of the ESI Corporation shall be audited annually by the Comptroller and Auditor General of India. Section 35, provides that the ESI Corporation shall submit to the Central Government Annual. Reports of its work and activities.

As per Section 36, the Annual Report, the audited accounts of the Corporation, together with the report of the Comptroller and Auditor General of India thereon, and the comment on such report and the budget as finally adopted by the corporation shall be placed before the Parliament.

Section 37 provides that the Corporation shall, at intervals of five years, have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government.