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 the Ministry of Labour and Employment, Government of India. It provides services and manages its customers through its large network of offices in India. It is headquartered in New Delhi, and as of July 2017, Sh. Raj Kumar is the Director General of ESIC.

History

Before the existence of ESI in Feb 1952, an economist and later Governor of the 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 the Employment State Insurance Act of 1948, but this came into reality in 1952 and was first established in Delhi and Kanpur.

The objective of the ESI Act of 1948

To provide benefits 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 the ESIC act, which is 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 insured employees and their families.

Medical Benefits: Employees and their dependents are entitled to free medical treatment at ESI dispensaries, hospitals, and clinics. The program pays for a variety of medical costs, including hospital stays, surgeries, diagnostic tests, and medications.

Benefits for Sickness: For a maximum of 91 days per year, employees who are unable to work owing to illness are entitled to financial benefits equal to up to 70% of their average daily income.

Maternity Benefits: Female employees are entitled to paid leave for up to 26 weeks for childbirth or miscarriage. They are also entitled to cash benefits of up to 100% of their average daily wage during their absence.

Disability Benefits: Employees who become disabled due to an occupational injury or disease are entitled to cash benefits of up to 90% of their average daily wage for a maximum of two years.

Benefits for Dependents: If an employee passes away while working, their dependents are eligible for financial benefits equal to up to 90% of the individual's average daily income.

Challenges faced by ESI

Despite the benefits of the ESI scheme, it faces several challenges in India. Some of the key challenges are:

Inadequate Coverage: The scheme covers only a small percentage of India's workforce, as it applies only to establishments with more than ten employees. Due to this, a sizable portion of the workforce is no longer able to obtain social security benefits.

Lack of Knowledge: The ESI program and its advantages are not well known by many employees or companies.

Infrastructure and Staffing Issues: ESI hospitals and dispensaries are often understaffed and lack proper infrastructure, which affects the quality of medical care provided to patients.

Delay in Claim Settlement: There are often delays in settlement of claims under the ESI scheme. This can cause financial hardship for employees and their families, especially in cases of medical emergencies.

Conclusion

The Employees' State Insurance scheme is a vital social security scheme that provides comprehensive benefits to employees and their families in India. Despite its challenges, the scheme has played a significant role in improving the social security and welfare of workers in India. The government and ESIC should take measures to increase awareness of the scheme, expand its coverage, and improve the quality of medical care provided under the scheme. By addressing these challenges, the ESI scheme can continue to provide a safety net for workers in India.