Law and You > Labour Laws > The Code on Social Security, 2020 > Employees’ State Insurance Corporation (S. 5 CSS, 2020)
The Employees’ State Insurance Corporation (ESIC) is a statutory body and an autonomous corporation established by the Government of India under the Employees’ State Insurance Act, 1948. It manages the Employee’s State Insurance (ESI) scheme, which is a social security and health insurance scheme for Indian workers.
ESIC provides comprehensive health and social security benefits to employees and their dependents, covering medical, sickness, maternity, disablement, and other related benefits. It’s aimed at providing financial protection during times of need such as illness, maternity, temporary or permanent disablement, and death due to employment injury.
The scheme is funded through contributions from both employers and employees, wherein a certain percentage of the employee’s wages goes towards the scheme. ESIC operates through a network of hospitals, dispensaries, and medical institutions across various regions in India, providing medical care to insured individuals.
Employees’ State Insurance Corporation:
Section 5(1) of the Code on Social Security, 2020 gives provision for the constitution of the Employees’ State Insurance Corporation. The Central Government may, by notification, constitute, with effect from such date as may be specified therein, the Employee’s State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government.
Composition of Employees’ State Insurance Corporation:
The Employees’ State Insurance Corporation is the main body responsible for the administration of the Employees’ State Insurance Scheme. It has following members:
- A Chairperson to be appointed by the Central Government;
- A Vice-Chairperson to be appointed by the Central Government;
- not more than five persons to be appointed by the Central Government from amongst its officials;
- One person representing each of such States in such manner, as may be prescribed by the Central Government;
- One person to be appointed by the Central Government to represent the Union territories;
- Ten persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
- Ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government;
- Two persons representing the medical profession to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government;
- Three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States; and
- The Director General of the Corporation, ex officio.
Status of the Employees’ State Insurance Corporation:
According to Section 5(2) of the Code on Social Security, 2020 the Corporation shall be a body corporate by the name of Employees’ State Insurance Corporation, having perpetual succession and a common seal and shall by the said name sue and be sued.
Standing Committee:
According to Section 5(3) of the Code on Social Security, 2020 the Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Standing Committee from amongst the members of the Corporation, in such manner as may be prescribed by the Central Government.
Functions of Standing Committee:
Section 5(4) of the Code on Social Security, 2020 gives functions and duties of Standing Committee. The functions of standing committee are as follows:
- The Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation in such manner as may be prescribed by the Central Government;
- It shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf; and
- It may, in its discretion, submit any other case or matter for the decision of the Corporation.
Medical Benefit Committee:
According to Section 5(5)(a) of the Code on Social Security, 2020 the Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Medical Benefit Committee of such composition as may be specified therein, to assist the Corporation and the Standing Committee in performance of its functions relating to administration of medical benefits.
Functions and Duties of Medical Benefit Committee:
Section 5(5)(b) of the Code on Social Security, 2020 gives functions and duties of Medical Benefit Committee. The functions of standing committee are as follows:
- The Medical Benefit Committee shall perform such duties and exercise such powers as may be prescribed by the Central Government.
Additional Committees:
According to Section 5(6) of the Code on Social Security, 2020 the Corporation may, by order, constitute one or more committees of such composition as may be specified in the regulations to assist it in the discharge of its functions.
Tenure of the Employees’ State Insurance Corporation and Committees:
According to Section 5(7) of the Code on Social Security, 2020 the terms and conditions, including tenure of office, subject to which a member of the Corporation and Standing Committee shall discharge their respective duties may be such as may be prescribed by the Central Government: Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
Conclusion:
The Employees’ State Insurance Corporation (ESIC) and the committees under the Code on Social Security play pivotal roles in ensuring the welfare and protection of employees in India. ESIC, established under the Employees’ State Insurance Act, 1948, is dedicated to providing comprehensive social security benefits to workers and their dependents. Through the ESIC scheme, employees gain access to medical care, sickness benefits, maternity benefits, disability benefits, and more, helping them navigate through various life challenges.
On the other hand, committees formed under the Code on Social Security contribute to the development and implementation of policies aimed at enhancing social security provisions for workers. These committees often consist of experts, policymakers, and representatives from both the government and private sectors, working together to ensure that social security laws remain relevant, effective, and equitable.
In conclusion, the synergy between the Employees’ State Insurance Corporation and the committees under the Code on Social Security underscores the commitment of the Indian government towards safeguarding the interests and well-being of its workforce, thereby fostering a more inclusive and resilient society.