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Navigating the Employee State Insurance Act Scheme for Optimal Coverage

Posted On : 28 December 2023, 3 Months Ago. Health-Insurance
Employee State Insurance Act Scheme

The Employee State Insurance Act is a scheme governed by Employee State Insurance Corporation(ESIC) under ESI Act 1948. This insurance scheme is committed to providing medical and financial security to employees during unavoidable health issues that may affect their incomes.

 

This medical insurance plan applies to shops, hotels, restaurants, factories, cinemas, road transport, and educational institutions, with more than ten employees getting a minimum ₹21,000 as salary. In a few states, this scheme applies to educational institutes having over 20 employees. Employers as well as employees contribute towards this scheme.

 

Features of the Employees State Insurance Scheme 

The Employee State Insurance Act is a scheme that provides a wide range of features, such as: 

  • It offers payment in instalments during unfortunate events.

  • It provides complete medical care and attention to employees.

  • It provides coverage for three years to an unemployed individual.

  • It offers maternity cover for approximately 26 weeks.

Benefits of Employees State Insurance Scheme

This scheme offers the following benefits to employees and their dependents:

 

Unemployment Allowance

If you are fired from your previous job, your income flow is reduced. Employees State Insurance Scheme acts as an income replacement in such a scenario.

 

Death Benefit

The financial security of your family members is at risk after your death. This insurance scheme offers a monthly payout to your beneficiaries after your death.

 

Maternity Benefit

With childbirth, your responsibilities and expenses increase. Employee Insurance Scheme offers maternity benefits to new parents.

 

Medical Support

This scheme offers medical coverage for you and your family members. Additionally, the Government of India has started Ayushman Bharat Yojana to offer quality healthcare services to people below the poverty line.

 

Sickness Benefit

The sickness benefits under this scheme are of three types:

  • Sickness Benefit- This cash benefit is payable at the rate of 70% of the salary during sickness. It is payable for a maximum of 91 days in a year.

  • Extended Sickness Benefit- This cash benefit is owed to the insured person undergoing sterilisation operation at the rate of full wage during sickness due to a disease that needs long-term medical treatment.

  • Enhanced Sickness Benefit- This cash benefit is payable to the insured person undergoing sterilisation operation at the rate of full wage.

Benefit for Dependents

If you suffer any health issues at your workplace, you don't need to worry about the financial crisis caused due to loss of income. With this health insurance plan, you and your dependents will get payments on a monthly basis.

 

Disablement Benefit

Employee Health Insurance Scheme provides monthly payments at a 90% salary until recovery. Employee State Insurance Act is a scheme that provides monthly payments at a 90% salary for a lifetime.

 

Old Age Healthcare

Retired individuals are entitled to get old-age healthcare with a payment of ₹120 annually under the ESIS scheme.

 

Entities Covered Under ESIC Scheme

The Employees' State Insurance Act 1948 covers a wide range of establishments in India as listed below:

 

  • All factories that employ ten or more persons and use power or twenty or more persons without the use of power.

  • Shops, including those that are part of a commercial establishment, such as hotels, restaurants, cinemas, and other entertainment establishments, that employ ten or more persons.

  • Road transport establishments, such as motor transport undertakings and companies that employ ten or more persons.

  • Private educational institutions that employ ten or more persons.

  • Medical institutions, including hospitals, nursing homes, and dispensaries, that employ ten or more persons.

  • Newspaper establishments that employ ten or more persons.

  • Plantations that employ ten or more persons.

 

The act applies to both temporary and permanent employees and covers both the organised and unorganised sectors. However, establishments that have medical facilities with at least 25 beds and provide medical facilities to their employees are exempt from the act's provisions. 

 

Eligibility Under Employee State Health Insurance Scheme

To be eligible for the Employee State Health Insurance Scheme (ESHIS), an employee must meet the following criteria:

  • The employee must be working in a factory or establishment covered under the Employees' State Insurance Act 1948.

  • The employee must be earning less than ₹21,000 per month. If the employee is disabled, the monthly wage limit is ₹25,000.

  • The employee must be insured under the ESIC Act 1948.

  • The employee should not be covered under any other health insurance scheme.

  • Dependents of the eligible employee, including spouse, children, and dependent parents, are also eligible.

 

It is essential to note that the eligibility criteria for this scheme may vary depending on the state in which the staff member is working. The ESIC website provides detailed information on eligibility criteria and other aspects of the scheme.

 

In conclusion, the Employees State Insurance Scheme offers a wide range of benefits. It is important to keep all the necessary documents ready to make the application procedure hassle-free.

Secure your health with comprehensive insurance plans from Nivabupa

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