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Q What Is, E.S.I. Scheme ?

In addition to necessities of food, clothing, housing etc., man needs security in times of physical and economic distress consequent upon sickness, disablement etc. The Employees' State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees' State Insurance Act and is designed to accomplish the task of protecting 'employees' as defined in the Employees' State Insurance Act against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The Scheme covers employees of non-seasonal power-using factories employing 10 or more persons. There is, however, a built-in provision for its extension to other establishments or classes of establishments, industrial, commercial, agricultural or otherwise. The Scheme has been progressively extended to cover employees in non-power using factories employing 20 or more persons and to commercial establishents.

Q How does the Employees State Insurance Scheme assist you?

The dependence of an individual on cash income is a characieristic feature of modern economy. An interruption of money income even for a $mall period is, therefore, a hardship; a prolonged loss of income is indeed a catastrophe. By coming forward to provide health protection and income maintenance in a series oft-experienced contingencies like sickness, maternity, disablement and death due to employment injury, the Employees' State lnsurance Scheme tends to ameliorate your economic anxiety and to be a friend in need and distress.

Q Why is it called a Health lnsurance Scheme?

The Employees' State Insurance Scheme performs a dual role; by providing assistance in kind (medical care) it tries to restore your health and working capacity and by assistance in cash (cash benefit) it tries to sustain you when your income is interrupted. With a better and facile health protection, greater vitality, and assurance of income-maintenance in times of need, it makes you every inch a better, a healthier, secure worker and therefore, a happier man. The assistance comes to you not as an act of benevolence but in virtue of an acquired right.

Q Who administers the Employees' State lnsurance Scheme?

The Employees' State lnsurance Scheme is administered by a corporate body called the Employees' State lnsurance Corporation (ESIC), which has members representing Employees, Employers, the Central Government, State Governments, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. The other bodies at the national level are the Standing Committee (a representative body of the Corporation) and the , Medical Benefit Council, a specialised body which advises the , Corporation on administration of Medical Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have been constituted. There is, thus, an association of interests and interest groups at all levels. ESIC is the trustee of the interests of the insured persons. It discharges its obligations and duties through a net-work of Regional Offices and Local Offices, Hospitals and Dispensaries spread over the entire country.

Q Whom does the Scheme protect?

The Scheme protects all "employees" engaged on a monthly remuneration not exceeding Rs. 6500/- in a factory/ establishment to which the Act applies. Persons employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or purchase of raw materials, or distribution or sale of the product of a factory or establishment are also covered. Mines, Railway Running Sheds, Naval, Military and Air Force Workshops and specified seasonal factories are excluded.The scheme also provides full medical cover to the dependants of insured persons. In the event of death of an insured person due to employment injury dependants become eligible to cash benefit.

Q Where do Employees State Insurance Funds Come from?

The Employees' State Insurance Funds are primarily built out of employers contribution and employees contribution payable monthly as a fixed percentage of wages.

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