• The E.S.I. Act (Employees State Insurance) passed in 1948
(amended in 1975, 1984, 1989 and 2010) is an important measure
of social security and health insurance in this country.
• It provides for certain cash and medical benefits to industrial
employees in case of sickness, maternity and employment injury.
• The act extends to the whole of India. The E.S.I. Act of 1948
covered all power using factories other than seasonal factories
wherein 10 or more persons were employed
• The provisions of the E.S.I. (amendment) act of 1975 were extended to the
following new classes of establishments:-
Small factories employing 10 or more persons, whether power is used in the
process of manufacturing or not.
Hotel and restaurants
Cinemas and theatres
Road-motor transport establishments
The scheme has been extended to private medical and educational institutions
employing 20 or more persons in some states.
6. MEDICAL BENEFITS
DIRECT PATTERN: In areas having a concentration of 1000 or more employee’s
family units, service dispensaries are established with full time medical and
• In areas where the employees are less than 750, part time ESI dispensaries are
• If the residential concentration of employees is scattered over a long distance,
mobile dispensaries are established.
INDIRECT PATTERN/ PANEL SYSTEM: Registered medical practitioners
designated as Insurance Medical Practitioners are appointed to provide
7. SICKNESS BENEFITS
EXTENDED SICKNESS BENEFIT: In addition to 91 days of sickness benefit,
insured persons suffering from certain long-term diseases are entitled to
extended sickness benefit, for a maximum period of 2 years. 34 diseases for
which extended sickness benefit with effect from 1.1.2000 is payable, in case
where the insured person has been in continuous employment for 2 years.
ENHANCED SICKNESS BENEFIT: is payable to insured women for 14 days
for tubectomy and for 7 days in case of vasectomy in respect of male IPs.
The amount payable is double the standard sickness benefit
8. MATERNITY BENEFIT
The benefit is payable in cash to an insured women for
confinement/miscarriage or sickness arising out of pregnancy/
confinement or premature birth of child or miscarriage.
For confinement, the duration of benefit is 12 week(84 days), for
miscarriage 6 weeks and for sickness arising out of confinement etc.
The benefit is allowed at about full wages.
The rate of confinement expenses has been increased from Rs. 2,500
to 5,000 per confinement.
9. DISABLEMENT BENEFIT
The Act provides for cash payment , besides free medical
treatment, in the event of temporary or permanent disablement as a
result of employment injury as well as occupational diseases.
The rate of temporary disablement benefit is about 90 percent of the
wages as long as the temporary disablement lasts.
In case of total permanent disablement, the insured person is given life
pension worked out on the basis of loss of earning capacity
determined by a medical officer
10. DEPENDANT’S BENEFIT
In case of death, as a result of employment injury, the dependants of
an insured person are eligible for periodical payments.
Pension at the rate of 90% of the wages is payable, shared by
dependants in a fixed ratio, on monthly basis in accordance with the
An eligible son or daughter is entitled to dependant’s benefit up to the
age of 18; the benefit is withdrawn if the daughter marries earlier.
11. FUNERAL EXPENSES
Funeral benefit is a cash payment payable on the death of an insured
person towards the expenses on his funeral, the amount not
exceeding Rs. 10,000.
On monthly payment of Rs. 10, the insured person and his family
members continue to get medical treatment after permanent
disablement or retirement
13. BENEFITS TO EMPLOYER
Exemption from the applicability of Workmen’s Compensation
Exemption from Maternity Benefit Act, 1961.
Exemption from payment of medical allowance to employees and
their dependent's or arranging for their medical care.
Rebate under the Income Tax Act on contribution deposited in the
• Central Government Health Scheme is providing comprehensive
medical care to the Central Government employees and pensioners
enrolled under the scheme.
• It was introduced in Delhi in 1954.
• CGHS is the model Health care facility provider for Central
Government employees & Pensioners and is unique of its kind due
to the large volume of beneficiary base, and open-ended generous
approach of providing health care.
• To give extensive medical facilities too
central government employees and their
• To save the government from heavy
expenses on medical refund.
• Central government employees and their family members
• Members of parliament
• Judge of supreme court and high court
• Freedom fighters
• Pensioners of central government semi government organizations
• Governors and ex- Vice presidents
• Work Charged and Industrial Staff working in establishments run by various
Ministries or Departments of Central Government.
• Employees of Ordnance Factory Board Headquarters
• Employees of Kendriya Vidyalayas Sangathan
• Outdoor treatment facilities in all medical systems
• Emergency services in allopathy system
• Free medication
• Facilities for laboratory tests and radiological tests
• Treatment facilities for serious patients at their home
• Specialist consultation facilities
• Treatment facilities in the government or government recognized private institutes.
• Facilities for 90 percent advanced payment, in case of need.
• Family Welfare, Maternity and Child Health Services.
• Medical consultation and dispensing of medicines in Ayurveda, Homeopathy, Unani and Siddha system of medicines
• Cashless facility available for treatment in empanelled hospitals and diagnostic centers for Pensioners and other identified