Employees’ State Insurance Act,1948

8/7/2019 Employees State Insurance Act,1948

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Presented By

G.Madhuri


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` Commenced on 19 th April 1948` Apply to an establishment only when the number

of employees is 20 or more.` To provide for certain benefits to employees in

case of sickness, maternity and employment injuryand to make provision for certain other matters inrelation thereto.


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` W ith effect from 1 st Oct 1948 for the administrationof the scheme of Employees State Insurance inaccordance with the provisions of this Act.

` All orders and decisions of corporation beauthenticated by the signature of the Director General of Corporation


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Corporation shall consist of the following members` A chairman, 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 state government concerned` One person to be appointed by central govt to represent Union

territories` Ten persons representing employers to be appointed by central govt` Ten persons representing employees to be appointed by central

govt` Two persons representing medical profession to be appointed by

central govt` 3 members of parliament : 2 members of Lok sabha` 1 member of Rajya sabha


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Standing committee of corporation constituted from itsmembers, consisting of

` A chairman, three members of corporation appointedby central govt

` Director-General of corporation, Ex officio` 3 members of corporation representing three state

govt` 8 members elected by corporation from members of

corporation- 3 members representing employers- 3 members representing employees- 1 member representing medical professional- 1 member elected by Parliament


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` Administers affairs of corporation and exerciseany of the powers and perform any of thefunctions of the corporation

` Committee shall submit for the consideration anddecision of the corporation


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Constituted by central govt, consisting of ` Director General-Health Services, ex officio as Chairman` Deputy Director General, Health services to be appointed by

central govt` Medical commissioner of the corporation, ex officio` 1 member each representing each of the States appointed

by the state govt` 3 members representing employers to be appointed by the

central govt` 3 members representing employees to be appointed by the

central govt` 3 members representing medical profession to be appointed

by central govt from which there shall be atleast 1 woman


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` Shall advice on matters relating to theadministration of medical benefit, certification for purposes of grant of benefits and other connected

matters` Have such powers and duties of investigation in

relation to complaints against medical practitioners` duties in connection with medical treatment and

attendance


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` A member may resign his office by notice inwriting to the central govt

` His seat shall fall vacant on acceptance by central

govt


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A member shall cease to be member of that body` if he fails to attend 3 consecutive meetings` In opinion of central govt, if any person cease to

represent employers, employees, medical profession,corporation, standing committee or medical benefitcouncil

` If a member of corporation elected from parliamentcease to be member of parliament


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` If a person declared to be of unsound mind by acompetent court

` If he is an undischarged insolvent` If before or after the commencement of this Act,

he has been convicted of an offence involvingimmoral behavior


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` All employees in factories or establishments to whichto this Act applies shall be insured in the manner provided by this Act

` Contribution payable under this Act comprise of employers contribution and employees contributionwhich shall be paid to the corporation

` Contribution shall be paid at rates prescribed bycentral govt

` Contribution payable shall fall due on the last day of wage period


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` If principal employer does not pay the contributiontill due, he shall be liable to simple interest at rateof 12% per annum or at higher rate till the date of

its actual payment as specified in regulations ( notexceeding lending rate charged by scheduledbank)

` Any interest is recoverable as arrear of land

revenue


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` Principal employer shall pay both employers contribution and

employees contribution in respect of every employee

` Employer can recover from employees contribution when not

withstanding anything contained in any other enactment

` Employer cannot deduct the employers contribution from wages

payable to employee by not withstanding any contract

` Any sum deducted by principal employer is entrusted to him by

employee` Principal employer shall bear the expenses of forwarding the

contribution to corporation


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` N o employees contribution payable whoseaverage daily wages during a wage period isbelow 6 rupees (w.e.f 1-2-1991)

` Contribution ( both employers and employees )payable by employer for each wage period(week)


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Corporation may make regulations regarding` The manner and time of payment of contributions` Entry in or upon books or cards of particulars of

contribution paid and benefits distributed in thecase of insured person

` Replacement of books or cards which have beenlost or destroyed


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` Every principal and immediate employer shallfurnish return and maintain registers relating topersons employed as well as in respect of his

factory or establishment , to be submitted to thecorporation` Corporation may appoint inspectors for the

purpose of this act .

` Inspectors will enquire into correctness of anyparticulars stated


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Subject to the provisions of this act, insured person or dependant shall beentitled to following benefits

` Sickness benefit : Periodical payments to any insured person in case of

sickness certified by duly appointed medical practitioner

` Maternity Benefit : Periodical payments to insured woman in case of confinement, miscarriage or sickness arising out of pregnancy,

premature birth of child

` Disablement Benefit : Periodical payments to insured person suffering

from disablement as a result of an employment injury and certified to beeligible by regulation authority

(conditions, rates & period as prescribed by central govt)


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` Dependants Benefit : Periodical payments to dependants of an insured person who dies as a result of employment injury

` Funeral Benefit : Payment to the eldest surviving member of the

family of insured person who has died ( provided that amount

shall not exceed 100 rupees & claim to be within 3 months of

death of the insured person)

` At the request of appropriate govt, corporation may extend

medical benefits to the family of insured person


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An insured person shall not be entitled to receivefor the same period

` Both sickness and maternity benefit` Both sickness benefit and disablement benefit for

temporary disablement` Both maternity and disablement benefit for

temporary disablement


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` State govt shall constitute an Employees Insurance Court for such local area

` N umber of judges as per desired by state govt

` Any person who is or has been a judicial officer or is a legal practitioner of five

years standing shall be qualified to be a judge of the Employees Insurancecourt

` State govt may appoint the same court for two or more local areas / two or more

courts for the same local area

` W here more than one court has been appointed for the same local area, state

govt may regulate the distribution of business between them


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If any question or dispute arises as to` Any person is an employee within meaning of this Act` Rate of wages or average daily wages of employee

` Rate of contribution payable by principal employer ` Right of any person to any benefit, as to amount and

duration` Dispute between principal employer, corporation or

employee in respect of any contribution, benefit, duespayable or recoverable under this Act


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` Any application, appearance or act required to be made by

any person before Employees Insurance Court may be

made by Legal practitioner or Officer of registered tradeunion or with the permission of the court by any other

person so authorised

` Employees Insurance Court may submit any question of

law for decision of High Court

` W hen the corporation has presented an appeal against an

order of Employees Insurance court and if so directed by

High Court shall pend the decision and withhold thepayment

` Period of limitation of appeal shall be 60 days


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` Punishment of false statement : If any person for the purpose of

increase in payment or benefit under this act / for purpose of avoiding

payment makes false statement shall be punishable with imprisonment

for a term which may extend to 6 months and fine not exceeding 2000

Rs or with both.

` Punishment for failure to pay contribution : If any person

Fails to pay contribution which under this act, he is liable to pay

Deducts or attempts to deduct from the wages of an employee, the employers

contribution

Reduces the wages or any privilege or benefit admissible to any employee

Fails to submit any return required by the regulations

Obstructs any inspector or official of corporation in the discharge of his duties


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Guilty of any contravention with any of requirements of this Act

or rules or regulations in respect of which no special penalty is

provided

` Enhanced punishment : If a person have been convicted by acourt of an offence punishable under this Act and he commits

the same offence, then for every subsequent offence shall be

punishable with imprisonment which may extend to 2 yrs and

fine of 5000 Rs.


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T hank You

Documents

Employees’ State Insurance Act,1948