ESIC stands for Employees State Insurance Corporation. The Employees state insurance was set up to fulfill the need for a comprehensive insurance system that would safeguard the needs of the employees in emergencies like sickness, disability, maternity or death. Apart from the workers, the act promises reasonable health care to the immediate dependants of the workers.
The ESI (Employees State Insurance) is administered by the ESIC (Employee State Insurance Corporation). The benefits given by the ESIC are in line with the conventions of the International Labour Organization.
The Finance required for this scheme is drawn mainly from employers and the workers. The contribution of the employers is a percentage of the wages being paid to the employees. The contribution of the employees is a percentage that is slightly lower than that paid by the employers. The government also shares the expenses incurred while providing health care.
The employer is supposed to pay his part of the contribution for every employee. The employee’s contribution can be paid by the employer and deducted from his salary.
The Employees State Insurance Scheme is administered by the Employee State Insurance Corporation (ESIC) which consists of representatives of the employers, the employees, the various levels of the government, the medical fraternity and the legislature.
The executive powers in the corporation are vested in a Standing committee which is drawn from among the members of the ESIC. The ESIC is advised on matters relating to medical benefit by a Medical Benefit Council.
The Scale and Scope of the medical benefits are prescribed by the Government after consulting the Corporation. All the beneficiaries are entitled to standard medical, surgical treatments.
Some of the benefits offered by the Employees State Insurance Scheme are :
1. Medical Benefit
2. Sickness Benefit
3. Maternity Benefit
4. Disablement Benefit
5. Benefit to Dependants
6. Funeral Expenses
A salient feature of the ESIC scheme is that the contribution from the employee is dependant on his ability while the medical benefit is based on his need.