ESI Benefits

Benefits of ESI Scheme Registration

The Employee State Insurance (ESI) scheme provides medical and monetary benefits to all employees from various industries. ESI is governed by an autonomous body of members representing employers, employees, state and federal governments, medical professionals, and the Parliament. Every employer is required by law to register for ESI under Section 2-A of the ESI Act 1948.

Entities Covered Under ESI

According to the notification issued by the government under Sec 1(5) of the ESI Act, the following entities are covered under ESI Registration.

• Shops
• Cinemas
• Restaurants and hotels
• Road motor transport establishments
• Newspaper establishments that are covered under the factory act
• Private educational institutions.

Benefits of Employees State Insurance (ESI) Scheme

Under Section 46 of the Act, the ESI offers six social security benefits.

Medical Benefits

Employees covered by the ESI plan, referred to as Insured Persons (IPs), and their family members are eligible to receive State Medical benefits up to the prescribed limit under Section 57 of the Act.

Beneficiaries can access medical care at ESI dispensaries, hospitals, diagnostic centres, and other ESI-approved facilities. They can make use of

• Home-based treatment by visits at their residences
• Consultation by specialists
• Drugs, artificial limbs, and other aids free of cost
• Free laboratory tests
• National health programmes like integrated family welfare, immunisation
• Special provisions and medical certifications
• Benefits for family members of the IPs: Complete medical care that is being offered to the employees, including hospitalisation, free drugs and aids, free medical examinations and tests, ambulance services, etc.

However, in some states like Gujarat and Bihar, the benefits may differ, and it is recommended to connect with professional service providers.

Permanent and Temporary Disablement Benefit

If an employee is permanently injured or becomes disabled as a result of unforeseen circumstances, the employee is entitled to certain benefits. The Medical Board for Occupational Diseases conducts a thorough assessment, taking into account the IP's age and monthly wages, before awarding a settlement.

Sickness Benefits

During sickness for a maximum of 91 days in a year, insured workers can claim up to 70 percent of their wages. But this will be upon the condition the employee has worked for 78 days over 6months and that a valid medical certification has to be submitted.

Maternity Benefits

Insured women employees could claim the following maternity benefits at 100% of their wages

• Confinement - payable for 12 weeks on submission of Form 21 and 23
• Miscarriage or medical termination of pregnancy - payable for six weeks from the date of miscarriage
• Sickness due to pregnancy or premature birth - payable for one month on submitting Forms 8,9 and 10
• In the event of death during childbirth, the designated nominees can avail the payable benefits under form 24.

Funeral Expenses

If the death of the employee happens during employment, then 90% of his salary would be given to his nominees or dependents. In addition, IPs get ₹10,000 as funeral expenses

Other Benefits

Other need-based benefits for employees include vocational rehabilitation, physical rehabilitation if a worker becomes physically disabled while on the job, old age medical care, and the Rajiv Gandhi Shramik Kalyan Yojana, which provides unemployment benefits, job training to improve skills, and ESI medical benefits while an employee is unemployed.

Why Vakilsearch?

Vakilsearch can help any organisation comply with the ESI scheme. Our expert team will contact you and get the required information to register in an ESI scheme. Our support team will check your queries and get back to you promptly. Vakilsearch’s professional legal experts will explain the benefits of an ESI scheme, which will help you make an informed decision. Feel free to contact Vakilsearch anytime and get started with your ESI registration.