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What is the full form of ESI

ESI: Employees' State Insurance

ESI stands for Employees' State Insurance. It is a health insurance scheme for Indian workers to provide medical and cash benefits to them. It is managed by Employees State Insurance Corporation (ESIC). ESIC is an autonomous corporation under Ministry of Labor and Employment, Government of India. It provides services and manages their customers through the large network of their offices in India. It is headquartered in New Delhi and as of July 2017, Sh. Raj Kumar is the Director General of ESIC.

ESI full form


Before the existence of ESI in Feb, 1952, an economist and later Governor of Reserve Bank of India B.N. Adarkar, was appointed by the Government of India to create a health insurance scheme for industrial workers. His submitted report was the basis of Employment State Insurance Act of 1948 but this came in reality in 1952 and first established in Delhi and Kanpur.

Objective of ESI Act, 1948

To provide benefit for sickness and medical treatment including maternity and disablement to the employees of factories and establishments and their dependents.

Six types of benefits are provided under ESIC act which are as follows:

  • Sickness benefit
  • Maternity benefit
  • Disablement benefit
  • Dependents' benefit
  • Medical benefit
  • Funeral expenses

Benefits of ESI

It is very useful for an employee. An insured person and their family get different types of benefits. There are mainly two types of benefits:

  • Medical benefits
  • Cash benefits

These insurance schemes include sickness, maternity, disablement, and death due to employment injury and provide medical care to the ensured employees and their families.

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