Employment Injury is the personal injury to an employee caused by an accident or by an occupational disease arising out of employment of the employee in a covered factory or establishment, and arising in the course of his employment in a covered factory or establishment. The site of the accident is immaterial and accident occurring or an occupational disease contracted even outside the territorial limits of India can result in entitlement to benefit under the ESI Act.
The first essential condition of an employment injury is that personal injury must have been caused. The term 'personal injury' is somewhat wider than physical or bodily injury but does not include an injury to the belongings or reputation of the person. It covers any physiological injury, for example, a man suffering nervous shock or insanity as a result of witnessing a terrible accident might be regarded as suffering from personal injury. An emotional impulse, however, does not constitute an injury unless it is accompanied by some physiological injury. Further, compensation is payable for the result of the injury and not for the injury itself Thus, a man who suffers from shock would not get compensation unless the shock results in his being disabled.