LexThe EMPLOYEES’ STATE INSURANCE ACT, 1948
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THE EMPLOYEES’ STATE INSURANCE ACT, 1948
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent, commencement and application.
2. Definitions.
2A. Registration of factories and establishments.
CHAPTER II
CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
3. Establishment of Employees’ State Insurance Corporation.
4. Constitution of Corporation.
5. Term of office of members of the Corporation.
6. Eligibility for re-appointment or re-election.
7. Authentication of orders, decisions, etc.
8. Constitution of Standing Committee.
9. Term of office of members of Standing Committee.
10. Medical Benefit Council.
11. Resignation of membership.
12. Cessation of membership.
13. Disqualification.
14. Filling of vacancies.
15. Fees and allowances.
16. Appointment of a Director General and a Financial Commissioner.
17. Staff.
18. Powers of the Standing Committee.
19. Corporation’s power to promote measures for health, etc., of insured persons.
20. Meetings of Corporation, Standing Committee and Medical Benefit Council.
21. Supersession of the Corporation and Standing Committee.
22. Duties of Medical Benefit Council.
23. Duties of Principal Officers.
24. Acts of Corporation, etc., not invalid by reason of defect in constitution, etc.
25. Regional Boards, Local Committees, Regional and Local Medical Benefit Councils.
CHAPTER III
FINANCE AND AUDIT
26. Employees’ State Insurance Fund.
27. [Omitted.]
28. Purposes for which the Fund may be expended.
28A. Administrative expenses.
29. Holding of property, etc.
30. Vesting of the property in the Corporation.
31. [Omitted.]
32. Budget estimates.
2
SECTIONS
33. Accounts.
34. Audit.
35. Annual report.
36. Budget, audited accounts and the annual report to be placed before Parliament.
37. Valuation of assets and liabilities.
CHAPTER IV
CONTRIBUTIONS
38. All employees to be insured.
39. Contributions.
40. Principal employer to pay contributions in the first instance.
41. Recovery of contribution from immediate employees.
42. General provisions as to payment of contribution.
43. Method of payment of contributions.
44. Employers to furnish returns and maintain registers in certain cases.
45. Social Security Officers, their functions and duties.
45A. Determination of contributions in certain cases.
45AA. Appellate authority.
45B. Recovery of contributions.
45C. Issue of certificate to the Recovery Officer.
45D.Recovery officer to whom certificate is to be forwarded.
45E. Validity of certificate and amendment thereof.
45F. Stay of proceedings under certificate and amendment or withdrawal thereof.
45G. Other modes of recovery.
45H. Application of certain provisions of the Income-tax Act.
45-I. Definitions.
CHAPTER V
BENEFITS
46. Benefits.
47. [Omitted.]
48. [Omitted.]
49. Sickness benefit
50. Maternity benefit.
51. Disablement benefit.
51A. Presumption as to accident arising in course of employment.
51B. Accidents happening while acting in breach of regulations, etc.
51C. Accidents happening while travelling in employer’s transport.
51D. Accidents happening while meeting emergency.
51E. Accidents happening while commuting to the place of work and vice versa.
52. Dependant’s benefit.
52A. Occupational disease.
53. Bar against receiving or recovery of compensation or damages under any other law.
54. Determination of question of disablement.
3
SECTIONS
54A. References to medical boards and appeals to medical appeal tribunals and Employees’ Insurance
Courts.
55. Review of decisions by medical board or medical appeal tribunal.
55A. Review of dependant’s benefit.
56. Medical benefit.
57. Scale of medical benefit;
58. Provision of medical treatment by State Government.
59. Establishment and maintenance of hospitals, etc., by Corporation.
59A. Provision of medical benefit by the Corporation in lieu of State Government.
59B. Medical and para-medical education.
General
60. Benefit not assignable or attachable.
61. Bar of benefits under other enactments.
62. Persons not to commute cash benefits.
63. Persons not entitled to receive benefit in certain cases.
64. Recipients of sickness or disablement benefit to observe conditions.
65. Benefits not to be combined.
66. [Omitted.]
67. [Omitted.]
68. Corporation’s rights where a principal employer fails or neglects to pay any
contribution.
69. Liability of owner or occupier of factories, etc., for excessive sickness benefit.
70. Repayment of benefit improperly received.
71. Benefit payable up to and including day of death.
72. Employer not to reduce wages, etc.
73. Employer not to dismiss or punish employee during period of sickness, etc.
CHAPTER VA
SCHEME FOR OTHER BENEFICIARIES
73A. Definitions.
73B. Power to frame Scheme.
73C. Collection of user charges.
73D. Scheme for other beneficiaries.
73E. Power to amend Scheme.
73F. Laying of Scheme framed under this Chapter.
CHAPTER VI
ADJUDICATION OF DISPUTE AND CLAIMS
74. Constitution of Employees’ Insurance Court.
75. Matters to be decided by Employees’ Insurance Court.
76. Institution of proceedings, etc.
77. Commencement of proceedings.
78. Powers of Employees’ Insurance Court.
79. Appearance by legal practitioners, etc.
80. [Omitted.]
81. Reference to High Court.
82. Appear.
83. Stay of payment pending appeal.
4
CHAPTER VII
PENALTIES
SECTIONS
84. Punishment for false statement.
85. Punishment for failure to pay contributions, etc.
85A. Enhanced punishment in certain cases after previous conviction.
85B. Power to recover damages.
85C. Power of Court to make orders.
86. Prosecutions.
86A. Offences by companies.
CHAPTER VIII
MISCELLANEOUS
87. Exemption of a factory or establishment or class of factories or establishments.
88. Exemption of persons or class of persons.
89. Corporation to make representation.
90. Exemption of factories or establishments belonging to Government or any local authority.
91. Exemption from one or more provisions of the Act.
91A. Exemptions to be either prospective or retrospective.
91AA. Central Government to be appropriate Government.
91B. Misuse of benefits.
91C. Writing off of losses.
92. Power of Central Government to give directions.
93. Corporation officers and servants to be public servants.
93A. Liability in case of transfer of establishment.
94. Contributions, etc., due to Corporation to have priority over other debts.
94A. Delegation of powers.
95. Power of Central Government to make rules.
96. Power of State Government to make rules.
97. Power of Corporation to make regulations.
98. [Omitted.]
99. Medical care for the families of insured persons.
99A. Power to remove difficulties.
100. Repeals and savings.
[THE FIRST SCHEDULE] OMITTED
THE SECOND SCHEDULE.
THE THIRD SCHEDULE.
5
THE EMPLOYEES’ STATE INSURANCE ACT, 1948
ACT NO. 34 OF 19481
[19th April, 1948.]
An Act to provide for certain benefits to employees in case of sickness, maternity and
employment injury and to make provision for certain other matters in relation thereto.
WHEREAS it is expedient to provide for certain benefits to employees in case of sickness, ma ternity
and employment injury and to make provision for certain other matters in relation thereto;
It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent, commencement and application.—(1) This Act may be called the Employees’
State Insurance Act, 1948.
(2) It extends to the whole of India 2***.
(3) It shall come into force on such date or dates 3 as the Central Government may, by notification in
the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and
4[for different States or for different parts thereof].
(4) It shall apply, in the first instance, to all factories (including factories belonging to the
Government) other than seasonal factories:
5[Provided that nothing contained in t his sub -section shall apply to a factory or establishment
belonging to or under the control of the Government whose employees are otherwise in receipt of benefits
substantially similar or superior to the benefits provided under this Act.]
(5) The appropria te Government may, in consultation with the Corporation and 6[where the
appropriate Government is a State Government, with the approval of the Central Government], after
giving 7[one month’s] notice of its intention of so doing by notification in the Offic ial Gazette, extend the
provisions of this Act or any of them, to any other establishment or class of establishments, industrial,
commercial, agricultural or otherwise:
8[Provided that where the provisions of this Act have been brought into force in any pa rt of a State,
the said provisions shall stand extended to any such establishment or class of establishments within that
part if the provisions have already been extended to similar establishment or class of establishment s in
another part of that State].
5[(6) A factory or an establishment to which this Act applies shall continue to be governed by this Act
notwithstanding that the number of persons employed therein at any time falls below the limit specified
by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.]
1. This Act has been extended to Jaunsar Bawar Parganas in the Dehra Dun District and the areas of South of Kaimpur range in
the Mirzapur District of th e State of Uttar Pradesh by Schedule IV of Act 20 of 1954; to Pondicherry by Reg. 7 of 1963, s. 3
and Schedule and to Goa, Daman and Diu by Reg. 11 of 1963, s.3 and the Schedule (w.e.f. 1-8-1965).
2. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
3. For dates see Annexure.
4. Subs. by Act 53 of 1951, s. 2, for “for different States” (w.e.f. 6-10-1951).
5. Ins. by Act 29 of 1989, s. 2 (w.e.f. 20-10-1989).
6. Subs. by Act 53 of 1951, s. 2, for “with the approval of the Central Government” (w.e.f. 6-10-1951).
7. Subs. by Act 18 of 2010, s. 2, for “six month’s ” (w.e.f. 1-6-2010).
8. Ins. by Act 29 of 1989, s. 2 (w.e.f. 16-5-1990).
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2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
(1) “appropriate Government ” means, in respect of establishments under the control of the
Central Government or 1[a railway administration] or a major port or a mine or oilfield, the Central
Government, and in all other cases, the State Government;
2* * * * *
(3) “confinement” means labour resulting in the issue of a living child or labour after twenty-six
weeks of pregnancy resulting in the issue of a child whether alive or dead;
(4) “contribution” means the sum of money payable to the Corporation by the principal employer
in respect of an employee and includes any amount payable by or on behalf of the employee in
accordance with the provisions of this Act;
3* * * * *
(6) “Corporation” means the Employees’ State Insurance Corporation set up under this Act;
4[(6A) “dependant” means any of the following relatives of a deceased insured person, namely:—
5[(i) a widow, a legitimate or adopted son who has not attained the age of twenty -five
years, an unmarried legitimate or adopted daughter,]
6[(ia) a widowed, mother;]
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a
legitimate or adopted son or daughter who has attained the age o f 7[twenty-five years] and
is infirm;
(iii) if wholly or in part dependent on the earnings of the insured per son at the time of
his death,—
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter
legitimate or adopted or illegitimate if married and a m inor or if widowed and a
minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre -deceased daughter where no pa rent of the child is
alive, or
(g) a paternal grand-parent if no parent of the insured person is alive;]
(7) “duly appointed” means appointed in accordance with the provisions of this Act or with the
rules or regulations made thereunder;
8[(8) “employment injury ” means a personal injury to an employee caused by accident or an
occupational disease arising out of and in the course of his employment, being an insurable
1. Subs. by the A.O. 1950, for “a federal railway”.
2. Omitted by Act 29 of 1989, s. 3 (w.e.f. 16-5-1990).
3. Omitted by s. 3, ibid. (w.e.f. 1-2-1991).
4. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).
5. Subs. by Act 18 of 2010, s. 3, for sub-clause (i) ((w.e.f. 1-6-2010).
6. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
7. Subs. by Act 18 of 2010, s. 3, for “eighteen years” (w.e.f. 1-6-2010).
8. Subs. by Act 44 of 1966, s. 2, for clause (8) (w.e.f. 28-1-1968).
7
employment, whether the accident occurs or the occupational disease is contracted within or outside
the territorial limits of India;]
(9) “employee” means any person employed for wages in or in connection with the work of a
factory or establishment to which this Act applies and—
(i) who is directly employed by the principal employer on any work of, or incidental or
preliminary to or connected with the work of, the factory or establishment, whether such work is
done by the employee in the factory or establishment or elsewhere; or
(ii) who is employed by or through an immediate employer on the premises of t he factory or
establishment or under the supervision of the principal employer or his agent on work which is
ordinarily part of the work of the factory or establishment or which is preliminary to the work
carried on in or incidental to the purpose of the factory or establishment; or
(iii) whose services are temporarily lent or let on hire to the principal employer by the pe rson
with whom the person whose services are so lent or let on hire has entered into a contract of
service;
1[and includes any person employed for wages on any work connected with the administration of the
factory or establishment or any part, department or branch thereof or with the purchase of raw materials
for, or the distribution or sale of the products of, the factory or establishment 2[or any person engaged as
an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) , or 3[and
includes such person engaged as apprentice whose training period is extended to any length of time ] but
does not include]—
(a) any member of 4[the Indian] naval, military or air forces; or
5[(b) any person so employed whose wages (excluding re muneration for overtime work)
exceed 6[such wages as may be prescribed by the Central Government]:
Provided that an employee whose wages (excluding remuneration for overtime work) exceed 6[such
wages as may be prescribed by the Central Government] at any t ime after (and not before) the beginning
of the contribution period, shall continue to be an employee until the end of that period;]
(10) “exempted employee ” means an employee who is not liable under this Act to pay the
employee’s contribution;
7[(11) “family” means all or any of the following relatives of an insured person, namely:—
(i) a spouse;
(ii) a minor legitimate or adopted child dependent upon the insured person;
(iii) a child who is wholly dependent on the earnings of the insured person and who is—
(a) receiving education, till he or she attains the age of twenty-one years,
(b) an unmarried daughter;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is
wholly dependent on the earnings of the insured person, so long as the infirmity continues;
8[(v) dependant parents, whose income from all sources does not exceed such income as
may be prescribed by the Central Government;
1. Subs. by Act 44 of 1966, s. 2, for “but does not include” (w.e.f. 28-1-1968).
2. Subs. by Act 29 of 1989, s. 3, for “but does not include” (w.e.f. 20-10-1989).
3. Subs. by Act 18 of 2010, s. 3, for “or under the standing orders of the establishment;” (w.e.f. 1-6-2010).
4. Subs. by the A.O. 1950, for “His Majesty’s”.
5. Subs. by Act 44 of 1966, s. 2, for sub-clause (b) (w.e.f. 28-1-1968).
6. Subs. by Act 29 of 1989, s. 3, for “one thousand and six hundred rupees a month” (w.e.f. 1-2-1991).
7. Subs. by s. 3, ibid., for clauses (11) and (12) (w.e.f. 20-10-1989).
8. Subs. by Act 18 of 2010, s. 3, for sub-clause (v) (w.e.f. 1-6-2010).
8
(vi) in case the insured person is unmarried and his or her parents are not alive, a mi nor
brother or sister wholly dependant upon the earnings of the insured person;]
1[(12) “factory” means any premises including the precincts thereof whereon ten or more persons
are employed or were employed on any day of the preceding twelve months, and in any part of which
a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine
subject to the operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;]
(13) “immediate employer ”, in relation to em ployees employed by or through him, means a
person who has undertaken the execution, on the premises of a factory or an establishment to which
this Act applies or under the supervision of the principal employer or his agent, of the whole , or any
part of any work which is ordinarily part of the work of the factory or establishment of the principal
employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory
or establishment, and includes a person by whom the service s of an employee who has entered into a
contract of service with him are temporarily lent or let on hire to the principal employer; 2[and
includes a contractor];
3[(13A) “insurable employment” means an employment in a factory or establishm ent to which
this Act applies;]
(14) “insured person ” means a person who is or was an employee in respect of whom
contributions are or were pa yable under this Act and who is by reason thereof, entitled to any of the
benefits provided by this Act;
3[(14A) “managing agent” means any person appointed or acting as the representative of another
person for the purpose of carrying on such other person ’s trade or business, but does not include an
individual manager subordinate to an employer;
4[(14AA) “manufacturing process ” shall have the meaning assigned to it in the Fac tories Act,
1948 (63 of 1948);]
(14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any perio d prior to
or during the twenty -sixth week of pregnancy but does not include any miscarriage, the causing of
which is punishable under the Indian Penal Code (45 of 1860);]
(15) “occupier” of the factory shall have the meaning assigned to it in the Factories Act, 5[1948
(63 of 1948)];
3[(15A) “permanent partial disablement ” means such di sablement of a permanent nature, as
reduces the earning capacity of an employee in every employment which he was capable of
undertaking at the time of the accident resulting in the disablement:
Provided that every injury specified in Part II of the Second Schedule shall be deemed to result in
permanent partial disablement;
(15B) “permanent total disablement ” means such disablement of a permanent nature as
incapacitates an employee for all work which he was capable of performing at the time of the accident
resulting in such disablement:
Provided that permanent total disablement shall be deemed to result from every injury specified
in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where
the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those
injuries, amounts to one hundred per cent. or more;]
4[(15C) “power” shall have the meaning assigned to it in the Factories Act, 1948 (53 of 1948);]
(16) “prescribed” means prescribed by rules made under this Act:
1. Subs. by Act 18 of 2010, s. 3, for clause (12) (w.e.f. 1-6-2010).
2. Added by Act 29 of 1989 s. 3 (w.e.f. 20-10-1989).
3. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968)
4. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
5. Subs. by Act 53 of 1951, s. 3, for “1934” (w.e.f. 6-10-1951).
9
(17) “principal employer” means—
(i) in a factory, the owner or occupier of the factory and includes the managing agent of such
owner or occupier, the legal representative of a deceased owner or occupier, and where a person
has been named as the manager of the factory under 1[the Factories Act, 1948 (63 of 1948)], the
person so named;
(ii) in any establishment under the control of any department of any Government in India, the
authority appointed by such Government in this behalf or where no authority is so appoint ed, the
head of the department;
(iii) in any other establishment, any person responsible for the supervision and control of th e
establishment;
(18) “regulation” means a regulation made by the Corporation;
(19) “Schedule” means a Schedule to this Act;
2[(19A) “seasonal factory” means a factory which is exclusively engaged in one or more of the
following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of
groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any
manufacturing process which is incidental to or connected with any of the aforesaid processes and
includes a factory which is engaged for a period not exceeding seven months in a year—
(a) in any process of blending, packing or repacking of tea or coffee; or
(b) in such other manufacturing process as the Central Government may, by notification in t he
Official Gazette, specify;]
(20) “sickness” means a condition which requires m edical treatment and attendance and necessitates
abstention from work on medical grounds;
(21) “temporary disablement” means a condition resulting from an employment injury which requires
medical treatment and renders an employee, as a result of such injur y, temporarily incapable of 3[doing
the work which he was doing prior to or at the time of the injury];
(22) “wages” means all remuneration paid or payable, in cash to an employee, if the terms of the
contract of employment, express or implied, were fulfil led and includes 4[any payment to an employee in
respect of any period of authorised leave, lock -out, strike which is not illegal or lay -off and] other
additional remuneration, if any, 5[paid at intervals not exceeding two months], but does not include—
(a) any contribution paid by the employer to any pension fund or provident fund, or under
this Act;
(b) any travelling allowance or the value of any travelling concession;
(c) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or
(d) any gratuity payable on discharge;
6[(23) “wage period” in relation to an employee means the period in respect of which wages are
ordinarily payable to him whether in terms of the contract of employment, express or im plied or
otherwise;]
1. Subs. by Act 53 of 1951, s. 3, for “clause (e) of sub-section (1) of section 9 of the Factories Act, 1934” (w.e.f. 6-10-1951).
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 2, for “work” (w.e.f. 28-1-1968).
4. Ins. by s. 2, ibid. (w.e.f. 28-1-1968).
5. Subs. by Act 53 of 1951, s. 3, for “paid at regular intervals after the last day of the wage period” (w.e.f. 6-10-1951).
6. Subs. by Act 45 of 1984, s. 2, for clause (23) (w.e.f. 27-1-1985).
10
1[(24) all other words and expressions used but not defined in this Act and defined in the
Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in
that Act.]
2[2A. Registration of factor ies and establishments. —Every factory or establishment to which this
Act applies shall be registered within such time and in such manner as may be specified in the regulations
made in this behalf.]
CHAPTER II
CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
3. Establishment of Employees’ State Insurance Corporation.—(1) With effect from such date as
the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be
established for the administration of th e scheme of Employees ’ State Insurance in accordance with the
provisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation.
(2) 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.
4. Constitution of Corporation. —The Corporation shall consist of the following members,
namely:—
3[(a) a Chairman to be 4[appointed] by the Central Government;
(b) a Vice-Chairman to be 4[appointed] by the Central Government;]
(c) not more than five persons to be 4[appointed] by the Central Government 5***;
(d) one person each representing each of the 6[ 7[States] in which this Act is in force] to be
4[appointed] by the State Government concerned;
(e) one person to be 4[appointed] by the Central Government to represent the 8[Union territories];
(f) 9[ten] persons representing employers to be 4[appointed] by the Central Government in
consultation with such organisatio ns of employers as may be recognised for the pur pose by the
Central Government;
(g) 9[ten] persons representing employees to be 4[appointed] by the Central Government in
consultation with such organisations of employees as may be recognised for the pur pose by the
Central Government;
(h) two persons representing the medical profession to be 4[appointed] by the Central
Government in consultation with such organisations of medical practitioners as may be recognised for
the purpose by the Central Government; 10***
11[(i) 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
(j) the Director General of the Corporation, ex officio.]
1. Subs. by Act 44 of 1966, s. 2, for clause (24) (w.e.f. 28-1-1968).
2. Ins. by s. 3, ibid. (w.e.f. 28-1-1968).
3. Subs. by s. 4, ibid., for clauses (a) and (b) (w.e.f. 17-6-1967).
4. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989).
5. The words “of whom at least three shall be officials of the Central Government ” omitted by Act 44 of 1966, s . 4
(w.e.f. 17-6-1967).
6. Subs. by Act 53 of 1951, s. 4, for “Part A States” (w.e.f. 6-10-1951).
7. Subs. by the A.O. (No. 3) 1956, for “Part A States and B States”.
8. Subs., ibid. for “Part C States”.
9. Subs. by Act 29 of 1989, s. 5, for “five” (w.e.f. 20-10-1989).
10. The word “and” omitted by Act 44 of 1966, s. 4 (w.e.f. 17-6-1967).
11. Subs. by s. 4, ibid., for clause (i) (w.e.f. 17-6-1967).
11
5. Term of office of members of the Corporation. —(1) Save as otherwise expressly provided in
this Act, the term of office of members of the Corporation, other than 1[the members referred to in clauses
(a), (b), (c), (d) and (e) of section 4 and the ex officio member,] shall be four years commencing from the
date on which their 2[appointment] or election is notified:
Provided that a member of the Corporation shall, notwithstanding the expiry of the said period of four
years, continue to hold office until the 2[appointment] or election of his successor is notified.
(2) The members of the Corporation referred to in clauses 3[(a), (b), (c), (d) and (e)] of section 4 shall
hold office during the pleasure of the Government 4[appointing] them.
6. Eligibility for re-appointment or re -election.—An outgoing member of the Corporation, the
Standing Committee, or the Medical Benefit Council shall be eligible for 5[re-appointment] or re-election
as the case may be.
6[7. Authentication of orders, decisions, etc. —All orders and decisions of the Corporation shall be
authenticated by the signature of the Director General of the Corporation and all other instruments issued
by the Corporation shall be authenticated by the signature of the Director General or such other officer of
the Corporation as may be authorised by him.]
8. Constitution of Standing Committee .—A Standing Committee of the Corporation shall be
constituted from among its members, consisting of—
(a) a Chairman, 7[appointed] by the Central Government;
(b) three members of the Corporation, 8[ 7[appointed] by the Central Government];
9[(bb) three members of the Corporation representing such three State Governments thereon as
the Central Government may, by notification in the Official Gazette, specify from time to time;]
(c) 10[eight] members elected by the Corporation as follows:—
11* * * * *
(ii) 12[three] members from among the members of the Corporation representing employers;
(iii) 12[three] members from among the members of the Corporation representing employees;
(iv) one member from among the members of the Corporation represent ing the medical
profession; and
(v) one member from among the members of the Corporation elected by 13[Parliament];
14[(d) the Director General of the Corporation, ex officio.]
9. Term of office of members of Standing Committee .—(1) Save as otherwise expressly provided
in this Act, the term of office of a member of the Standing Committee, other than a member referred to in
clause ( a) or 15[clause ( b) or clause ( bb)] of section 8, shall be two years from the date on which his
election is notified:
1. Subs. by Act 44 of 1966, s. 5, for certain words (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, s. 4, for “nomination” (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 5, for “(c), (d) and (e)” (w.e.f. 17-6-1967).
4. Subs. by Act 29 of 1989, s. 4, for “nominating” (w.e.f. 20-10-1989).
5. Subs. by s. 4, ibid., for “renomination” (w.e.f. 20-10-1989).
6. Subs. by Act 44 of 1966, s. 6, for section 7 (w.e.f. 17-6-1967).
7. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989).
8. Subs. by Act 44 of 1966, s. 7, for certain words (w.e.f. 17-6-1967).
9. Ins. by Act 53 of 1951, s. 5 (w.e.f. 6-10-1951).
10. Subs. by Act 44 of 1966, s. 7, for “six” (w.e.f. 17-6-1967).
11. Omitted by Act 53 of 1951, s. 5 (w.e.f. 6-10-1951)
12. Subs. by Act 44 of 1966, s. 7, for “two” (w.e.f. 17-6-1967).
13. Subs. by the A.O. 1950, for “the Central Legislature”.
14. Ins. by Act 44 of 1966, s. 7 (w.e.f. 17-6-1967).
15. Subs. by Act 53 of 1951, s. 6, for “clause (b)” (w.e.f. 6-10-1951).
12
Provided that a member of the Standing Committee shall, notwithstanding the expiry of the said
period of two years, continue to hold office until the election of his successor is notified:
Provided further that a member of the Standing Committee shall cease to hold office when he ceases
to be a member of the Corporation.
(2) A member of the Standing Committe e referred to in clause ( a) or 1[clause (b) or clause ( bb)] of
section 8 shall hold office during the pleasure of the Central Government.
10. Medical Benefit Council .—(1) The Central Government shall constitute a Medical Benefit
Council consisting of—
2[(a) the Director General, the Employees’ State Insurance Corporation, ex officio as Chairman;
(b) a Director-General, Health Services, ex officio, as Co-Chairman;]
(c) the Medical Commissioner of the Corporation, ex officio;
(d) one member each represent ing each of the 3[ 4[States (other than Union territories)] in which
this Act is in force] to be 5[appointed] by the State Government concerned;
(e) three members representing employers to be 5[appointed] by the Central Government in
consultation with suc h organisations of employers as may be recognised for the purpose by the
Central Government;
(f) three members representing employees to be 5[appointed] by the Central Government in
consultation with such organisations of employees as may be recognised fo r the purpose by the
Central Government; and
(g) three members, of whom not less than one shall be a woman, representing the medical
profession, to be 5[appointed] by the Central Government in consultation with such organisations of
medical practitioners as may be recognised for the purpose by the Central Government.
(2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical
Benefit Council, other than a member referred to in any of the clauses ( a) to (d) of sub-section (1), shall
be four years from the date on which his 6[appointment] is notified:
7[Provided that a member of the Medical Benefit Council shall, notwithstanding the expiry of the said
period of four years continue to hold office until the 6[appointment] of his successor is notified.]
(3) A member of the Medical Benefit Council referred to in clauses ( b) and ( d) of sub -section (1)
shall hold office during the pleasure of the Government 8[appointing] him.
11. Resignation of membership .—A member of the Corporation, the Standing Committee or the
Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat
shall fall vacant on the acceptance of the resignation by that Government.
12. Cessation of membership.—9[(1)] A member of the Corporation, the Standing Committee or the
Medical Benefit Council shall cease to be a member of that body if he fails to attend thre e consecutive
meetings thereof:
Provided that the Corporation, the Standing Committee or the Medical Benefit Council, as the case
may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.
10[(2) Where in the opinion of the Central Government any person 5[appointed] or elected to represent
employers, employees o r the medical profession on the Corporation, the Standing Committee or the
1. Subs. by Act 53 of 1951, s. 6, for “clause (b)” (w.e.f. 6-10-1951).
2. Subs. by Act 18 of 2010, s. 4, for sub-clauses (a) and (b) (w.e.f. 1-6-2010).
3. Subs. by Act 53 of 1951, s. 7, for “Part A States” (w.e.f. 6-10-1951).
4. Subs. by the A.O. (No. 3) 1956, for “Part A States or Part B States”.
5. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989).
6. Subs. by s. 4, ibid., for “nomination” (w.e.f. 20-10-1989).
7. Added by Act 44 of 1966, s. 8 (w.e.f. 17-6-1967).
8. Subs. by Act 29 of 1989, s. 4, for “nominating” (w.e.f. 20-10-1989).
9. Section 12 re-numbered as sub-section (1) thereof by Act 53 of 1951, s. 8 (w.e.f. 6-10-1951).
10. Ins. by s. 8, ibid. (w.e.f. 6-10-1951).
13
Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the
medical profession, the Central Government may, by notification in the Official Gazette, declare that with
effect from such date as may be specified therein such person shall cease to be a member of the
Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.]
1[(3) A person referred to in clause (i) of section 4 shall cease to be a member on becoming a Minister
or Speaker or Deputy Speaker of the House of the People or Deputy Chairman of the Council of States or
when he ceases to be a member of Parliament.]
13. Disqualification.—A person shall be disqu alified for being chosen as or for being a member of
the Corporation, the Standing Committee or the Medical Benefit Council—
(a) if he is declared to be of unsound mind by a competent Court; or
(b) if he is an undischarged insolvent; or
(c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract
with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder
(not being a Director) of a company; or
(d) if before or after th e commencement of this Act, he has been convicted of an offence
involving moral turpitude.
14. Filling of vacancies. —(1) Vacancies in the office of 2[appointed] or elected members of the
Corporation, the Standing Committee and the Medical Benefit Council shall be filled by 3[appointment]
or election, as the case may be.
(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council
2[appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose
place he is 2[appointed] or elected would have been entitled to hold office if the vacancy had not
occurred.
15. Fees and allowances .—Members of the Corporation, the Standing Committee and the Medical
Benefit Council shall receive such fees and allowance s as may from time to time be prescribed by the
Central Government.
16. Appointment of a Director General and a Financial Commissioner. —4[(1) The Central
Government may, in consultation with the Corporation, appoint a Director General and a Financial
Commissioner.]
(2) The Director General shall be the Chief Executive Officer of the Corporation.
(3) 5[The Director General and The Financial Commissioner] shall be whole -time officers of the
Corporation and shall not undertake any work unconnected with their office without the sanction of the
Central Government 6[and of the Corporation].
(4) 5[The Director General or the Financial Commissioner] shall hold office for such period, not
exceeding five years, as may be specified in the order appointing him. An outgoing 5[the Director General
or Financial Commissioner] shall be eligible for reappointment if he is otherwise qualified.
(5) 5[The Director General or the Financial Commissioner] shall receive such salary and allowances
as may be prescribed by the Central Government.
(6) A person shall be disqualified from being appointed as or for being 5[the Director General or the
Financial Commissioner] if he is subject to any of the disqualifications specified in section 13.
(7) The Central Government may at any time remove 5[the Director General or the Financial
Commissioner] fr om office and shall do so if such removal is recommended by a resolution of the
1. Subs. by Act 18 of 2010, s. 5, for “sub-section (3)” (w.e.f. 1-6-2010).
2. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989).
3. Subs. by s. 4, ibid., for “nomination” (w.e.f. 20-10-1989).
4. Subs. by s. 6, ibid., for sub-section (1) (w.e.f. 20-10-1989).
5. Subs. by s. 6, ibid., for “The Principal Officers” (w.e.f. 20-10-1989).
6. Ins. by Act 44 of 1966, s. 10 (w.e.f. 17-6-1967).
14
Corporation passed at a special meeting called for the purpose and supported by the votes of not less than
two-thirds of the total strength of the Corporation.
17. Staff. —(1) T he Corporation may employ such other staff of officers and servants as may be
necessary for the efficient transaction of its business provided that the sanction of the Central Government
shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such
salary as may be prescribed by the Central Government].]
3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service
of the members of the staff of the Corporation shall be such as may be specified in the regulations made
by the Corporation in accordance with the rules and orders applicable to the officers and employees of the
Central Government drawing corresponding scales of pay:
Provided that where the Corporation is of the opinion that it is necessary to make a departure from the
said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior appr oval of the
Central Government:
4[Provided further that this sub-section shall not apply to appointment of consultants and specialists in
various fields appointed on contract basis.]
(b) In determining the corresponding scales of pay of the members of the staff under clause ( a), the
Corporation shall have regard to the educational qualifications, method of recrui tment, duties and
responsibilities of such officers and employees under the Central Government and in case of any doubt,
the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]
(3) Every appointment to 5[posts 6[(other than medical posts)] corresponding to 7[Group A and Group
B] posts under the Central Government] shall be made in consultation with the 8[Union] Public Service
Commission:
Provided that this sub -section shall not apply to an officiating or tem porary appointment for 9[a
period] not exceeding one year:
10[Provided further that any such officiating or temporary appointment shall not confer any claim for
regular appointment and the services rendered in that capacity shall not count towards seniorit y or
minimum qualifying service specified in the regulations for promotion to next higher grade.]
11[(4) If any question arises whether a post corresponds to a 7[Group A and Group B] post under the
Central Government, the question shall be referred to that Government whose decision thereon shall be
final.]
18. Powers of the Standing Committee. —(1) Subject to the general superintendence and control of
the Corporation, 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.
(2) The Standing Committee 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.
(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of
the Corporation.
19. Corporation ’s power to promote measures for health, etc., of insured persons .—The
Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the
1. Subs. by Act 38 of 1975, s. 3, for certain words (w.e.f. 1-9-1975).
2. Subs by Act 29 of 1989, s. 7, for “exceeds two thousand and two hundred fifty rupees” (w.e.f. 1-2-1991).
3. Subs. by s. 7, ibid., for sub-section (2) (w.e.f. 8-11-1989).
4. Ins. by Act 18 of 2010, s. 6 (w.e.f. 1-6-2010).
5. Subs. by Act 44 of 1966, s. 11, for certain words (w.e.f. 17-6-1967).
6. Ins. by Act 29 of 1989, s. 7 (w.e.f. 16-5-1990).
7. Subs. by Act 45 of 1984, s. 3, for “Class I or Class II” (w.e.f. 27-1-1985).
8. Subs. by the A.O. 1950, for “Federal”.
9. Subs. by Act 29 of 1989, s. 7, for “an aggregate period” (w.e.f. 20-10-1989).
10. Ins. by s. 7, ibid. ( (w.e.f. 20-10-1989)
11. Ins. by Act 44 of 1966, s. 11 (w.e.f. 17-6-1967).
15
improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of
insured persons who have been disabled or injured and may incur in respect of such measures expenditure
from the funds of the Corporation within such limits as may be prescribed by the Central Government.
20. Meetings of Corporation, Standing Committee and Medical Benefit Council.—Subject to any
rules made under this Act, the Corporation, the Standing Com mittee and the Medical Benefit Council
shall meet at such times and places and shall observe such rules or procedure in regard to transaction of
business at their meetings as may be specified in the regulations made in this behalf.
21. Supersession of the Corporation, and Standing Committee .—(1) If in the opinion of the
Central Government, the Corporation or the Standing Committee persistently makes default in performing
the duties imposed on it by or under this Act or abuses its powers, that Government may , by notification
in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in
consultation with the Corporation, the Standing Committee:
Provided that before issuing a notification under this sub-section the Central Government shall give a
reasonable opportunity to the Corporation or the Standing Committee, as the case may Excerpt shown. Open the full act in Lexace.