ESI is an insurance scheme. It is a combination of a number of insurance policies. But it is not like other policies which anyone can purchase. Its applicability has been discussed later in this article.
It provides following benefits to the member of ESI scheme:
- Medical benefit in the form of special hospitals dedicated.
- Death benefit in the form of lump sum payment to nominee.
- Sickness benefit in the form of cash compensation.
- Temporary disablement benefit in the form of cash compensation.
- Permanent disablement benefit in the form of cash compensation.
- Unemployment benefit in the form of cash compensation.
There are few more benefits available under ESI.
It is currently implemented in All States and Union Territories except Manipur, Sikkim, Mizoram and Arunachal Pradesh. Even though it is applicable to almost whole of India, it is managed State Wise. Therefore, name is Employees’ State Insurance.
Factories employing 10 or more employees are mandatory covered under this Scheme. They need to get themselves registered under this Scheme.
Besides factories, shops, cinemas including preview theaters, hotels, restaurants, road-motor transport undertakings and newspaper need to get themselves registered under this Scheme if they are employing 20 or more employees. However, some of the State Govt. have reduced this limit to 10.
Some of the States Govt. have also mandated this Scheme for Private Medical and Educational institutions as well. Number of employees varies according to the state. In some States, it is 10 and in other cases, it is 20.
Those employees earning salary or wages less than or equal to INR 15000/- per month (Gross) are mandatory covered under this Scheme.
Other Articles : EPF Facts 1 – Nomination and Insurance Facility