LexThe Employees' State Insurance Act,1948
Maharashtra · state statute
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EMPLOYEES’ STATE INSURANCE ACT, 1948
[Act No. 34 of Year 1948, dated 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,
maternity 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 1 [***].
(3) It shall come into force on such 2date or dates 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 3[ 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:
4 [PROVIDED that nothing contained in this 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 appropriate government may, in consultation with the Corporation and
5[where
the appropriate government is a State Government, with the approval of the Central
Government], after giving six months’ notice of its intention of so doing by notification
in the Official Gazette, extend the provisions of this Act or any of them, to any other
establishment or class of establishments, industrial, commercial, agricultural or otherwise
:
6 [PROVIDED that where the provisions of this Act have been brought into force in any
part 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 establishments in another part of that State.]
4 [(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.]
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 7[a railway administration] or a major port or a mine or
oilfield, the Central Government, and in all other cases, the 8[State] Government;
9 [(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;
10 [(5)***]
(6) "Corporation" means the Employees' State Insurance Corporation set up under this
Act;
11 [(6A) "dependant" means any of the following relatives of a deceased insured person,
namely,-
(i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted
12 [daughter;]
14 [(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 of eighteen years
and is infirm;
(iii) if wholly or in part dependent on the earnings of the insured person 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 minor 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 parent 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;
13 [(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 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 the
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 person with whom the person whose services are so lent or let on hire has entered into
a contract of service;
14 [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 15 [or any person engaged as an apprentice, not being an
apprentice engaged under the Apprentices Act, 1961, or under the standing orders of the
establishment; but does not include ]]-
(a) any member of
16 [the Indian] naval, military or air forces; or
17 [(b) any person so employed whose wages (excluding remuneration for overtime
work) exceed 18 [such wages as may be prescribed 136 by the Central Government]]:
PROVIDED that an employee whose wages (excluding remuneration for
overtime work) exceed 18 [such wages as may be prescribed by the Central Government]
at any time 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;
19 [(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;
(v) dependent parents;
(12) "factory" means any premises including the precincts thereof-
(a) whereon ten or more persons are employed or were employed for wages on any
day of the preceding twelve months, and in any part of which a manufacturing process is
being carried on with the aid of power or is ordinarily so carried on, or
(b) whereon twenty or more persons are employed or were employed for wages on
any day of the preceding twelve months, and in any part of which a manufacturing
process is being carried on without the aid of power or is ordinarily so carried on.
but does not include a mine subject to the operation of the Mines Act, 1952 or a railway
running shed;]
(13) "immediate employer", in relation to employees 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 services of an employee who has entered into a contract
of service with him are temporarily lent or let on hire to the principal employer
4[and
includes a contractor];
11 [(13A) "insurable employment" means an employment in a factory or establishment 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 payable under this Act and who is, by reason thereof, entitled to
any of the benefits provided by this Act;
11 [ (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 Factories
Act, 1948;]
(14B) "mis-carriage" means expulsion of the contents of a pregnant uterus at any
period prior to or during the twenty-sixth week of pregnancy but does not include any
mis-carriage, the causing of which is punishable under the Indian Penal Code;]
(15) "occupier" of the factory shall have the meaning assigned to it in the Factories
Act, 1948];
11 [(15A) "permanent partial disablement" means such disablement 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;]
(16) "prescribed" means prescribed by rules under this Act;
(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
20 [the
Factories Act, 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 appointed, the head of the department;
(iii) in any other establishment, any person responsible for the supervision and
control of the establishment;
(18) "regulation" means a regulation by the Corporation;
(19) "Schedule" means a Schedule to this Act;
4 [(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 the Official Gazette, specify;]
(20) "sickness" means a condition which requires medical 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 injury,
temporarily incapable of 21 [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 fulfilled and includes
11 [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, 22 [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.
23 [(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 implied or otherwise.]
24 [(24) all other words and expressions used but not defined in this Act and defined in
the Industrial Disputes Act, 1947, shall have the meanings respectively assigned to them
in that Act.]
11 [2A. Registration of factories 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 25 as the Central Government may, by notification in the
Official Gazette, appoint in this behalf, there shall be established for the administration of
the 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:-
26 [(a) a Chairman to be 27 [appointed] by the Central Government;
(b) a Vice-Chairman to be 27 [appointed] by the Central Government;]
(c) not more than five persons to be 27 [appointed] by the Central Government, 28 [* *
*];
(d) one person each representing each of the
29 [30 [States] in which this Act is in force]
to be 27 [appointed] by the State Government concerned;
(e) one person to be 27 [appointed] by the Central Government to represent the 31 [Union
Territories];
(f)
32 [ten] persons representing employers to be 27 [appointed] by the Central
Government in consultation with such organisations of employers as may be recognised
for the purpose by the Central Government;
(g)
32 [ten] persons representing employees to be 27 [appointed] by the Central
Government in consultation with such organisations of employees as may be reorganised
for the purpose by the Central Government;
(h) two persons representing the medical profession to be
27 [appointed] by the Central
Government in consultation with such organisation of medical practitioners as may be
recognised for the purpose by the Central Government 33 [* * *;
(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.]
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 34 [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 27 [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 27 [appointment] or election of
his successor is notified.
(2) The members of the Corporation referred to in clauses
35 [(a),(b),(c) and (e)]of
section 4 shall hold office during the pleasure of the government 27 [appointing] them.
6. Eligibility for re-nomination or re-election
An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit
Council shall be eligible for 36 [re-appointment] or re-election as the case may be.
37 [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,
38 [appointed] by the Central Government;
(b) three members of the Corporation 38 [appointed] by the Central Government];
39 [(bb) three members of the Corporation representing such three State Governments
thereon as the Central Government may, by notification Gazette, specify from time to
time;]
(c)
40 [eight] members elected by the Corporation as follows-
41 [* * *]
(ii) 42 [three] members from among the members of the Corporation representing
employers;
(iii)
42 [three] members from among the members of the Corporation representing
employees;
(iv) one member from among the members of the Corporation representing the
medical profession; and
(v) one member from among the members of the Corporation elected by
43 [Parliament];
44 [(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 45 [clause (b) or
clause (bb)]of section 8, shall be two years from the date on which his election is
notified:
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 Committee referred to in clause (a) or
45 [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-
(a) the Director General, Health Services, ex officio, as Chairman;
(b) a Deputy Director General, Health Services, to be 27 [appointed] by the Central
Government;
(c) the medical commissioner of the Corporation, ex officio;
(d) one member each representing each of the
29 [46 [States (other than Union
Territories) in Which this Act is in force] to be 27 [appointed] by the State Government
concerned;
(e) three members representing employers to be
27 [appointed] by the Central
Government in consultation with such organisations of employers as may be recognised
for the purpose by the Central Government;
(f) three members representing employees to be
27 [appointed] by the Central
Government in consultation with such organisations of employees as may be recognised
for 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 27 [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-sec. (1), shall be four years from the date on which his
27 [appointment] is
notified:
47 [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 48 [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
48 [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
49 [(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 three 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.
39 [(2) Where in the opinion of the Central Government any person 48 [appointed] or
elected to represent employers, employees or the medical profession on the Corporation,
the Standing Committee or the 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.]
44 [ (3) A person referred to in clause (i) of section 4 shall cease to be a member of the
Corporation when he ceases to be a Member of Parliament.]
13. Disqualification
A person shall be disqualified 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 the commencement of this Act, he has been convicted of an
offence involving moral turpitude.
14. Filling of vacancies
(1) Vacancies in the office of 48 [appointed] or elected members of the Corporation, the
Standing Committee and the Medical Benefit Council shall be filled by 50 [appointment]
or election, as the case may be.
(2) A member of the Corporation, the Standing Committee or the Medical Benefit
Council
48 [appointed] or elected to fill a casual vacancy shall hold office only so long as
the member in whose place he is 48 [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 allowances as may from time to time be prescribed by the
Central Government.
16. Principal officers
50 [(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)
51 [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 44 [and of the Corporation.]
(4) 51 [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 52 [director general or financial commissioner] shall be eligible for re-
appointment if he is otherwise qualified.
(5) 51 [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 48 [appointed] as or for being 52 [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
52 [the director general or the
financial commissioner] from office and shall do so if such removal is recommended by a
resolution of the 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) The 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 53 [the maximum
monthly salary of which 54 [exceeds such salary as may be prescribed by the Central
Government.]
55 [(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 approval of the Central Government.
(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
recruitment, 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
56 [posts 6[(other than medical posts)] corresponding to
57 [Group A and Group B] posts under Central Government], shall be made in
consultation with the 58 [Union] Public Service Commission:
PROVIDED that this sub-section shall not apply to an officiating or temporary
48 [appointment] for 59 [a period] not exceeding one year:
4 [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 seniority or minimum qualifying service specified in the regulations
for promotion to next higher grade.]
58 [(4) If any question arises whether a post corresponds to a 6[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 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 Committee 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 be, to show cause why it should not be superseded and shall
consider the explanations and objections, if any, of the Corporation or the Standing
Committee, as the case may be.
(2) Upon the publication of a notification under sub-section (1) superseding the
Corporation or the Standing Committee, all the members of the Corporation or the
Standing Committee, as the case may be, shall, as from the date of such publication, be
deemed to have vacated their offices.
(3) When the Standing Committee has been superseded, a new standing Committee
shall be immediately constituted in accordance with section 8.
(4) When the Corporation has been superseded, the Central Government may-
(a) immediately
27 [appoint] or cause to be 27 [appointed] or elected new members to
the Corporation in accordance with section 4 and may constitute a new Standing
Committee under section 8;
(b) in its discretion, appoint such agency, for such period as it may think fit, to
exercise the powers and perform the functions of the Corporation and such agency shall
be competent to exercise all the powers and perform all the functions of the Corporation.
(5) The Central Government shall cause a full report of any action taken under this
section and the circumstances leading to such action to be laid before
43 [Parliament] at
the earliest opportunity and in any case not later than three months from the date of the
notification superseding the Corporation or the Standing Committee as the case may be.
22. Duties of Medical Benefit Council
The Medical Benefit Council shall-
(a) advise
60 [the Corporation and the Standing Committee] on matters relating to the
administration of medical benefit, the certification for purposes of the grant of benefits
and other connected matters;
(b) have such powers and duties of investigation as may be prescribed in relation to
complaints against medical practitioners in connection with medical treatment and
attendance; and
(c) perform such other duties in connection with medical treatment and attendance as
may be specified in the regulations.
23. Duties of
61 [Director General and the Financial Commissioner]
The 61 [director general and the financial commissioner] shall exercise such powers and
discharge such duties as may be prescribed. They shall also perform such other functions
as may be specified in the regulations.
24. Acts of Corporation, etc. not invalid by reason of defect in constitution, etc.
No act of the Corporation, the Standing Committee or the Medical Benefit Council shall
be deemed to be invalid by reason of any defect in the constitution of the Corporation, the
Standing Committee or the Medical Benefit Council, on the ground that any member
thereof was not entitled to hold or continue in office by reason of any disqualification or
of any irregularity in his 27 [appointment] or election, or by reason of such act having been
done during the period of any vacancy in the office of any member of the Corporation,
the Standing Committee or the Medical Benefit Council.
25. Regional Boards, Local Committees, Regional and Local Medical Benefit
Councils
The Corporation may appoint regional boards, local committees and regional and local
Medical Benefit Councils in such areas and in such manner, and delegate to them such
powers and functions, as may be provided by the regulations.
CHAPTER III: FINANCE AND AUDIT
26. Employees’ State Insurance Fund
(1) All contributions paid under this Act and all other moneys received on behalf of the
Corporation shall be paid into a fund called the Employees' State Insurance Fund which
shall be held and administered by the Corporation for the purposes of this Act.
(2) The Corporation may accept grants, donations and gifts from the Central or any
62 [State Government,] 63 [***] local authority, or any individual or body whether
incorporated or not, for all or any of the purposes of this Act.
64 [(3) Subject to the other provisions contained in this Act and to any rules or
regulations made in this behalf, all moneys accruing or payable to the said Fund shall be
paid into the Reserve Bank of India or such other bank as may be approved by the
Central Government to the credit on an account styled the account of the Employees’
State Insurance Fund.]
(4) Such account shall be operated on by such officers as may be authorised by the
Standing Committee with the approval of the Corporation.
27. Grant by the Central Government
[Omitted by Act No. 44 of 1966, section 12 (w.e.f. 17th., June, 1967)]
28. Purposes for which the fund may be expended
Subject to the provisions of this Act and of any rules made by the Central Government in
that behalf, the Employees’ State Insurance Fund shall be expended only for the
following purposes, namely:-
(i) payment of benefits and provision of medical treatment and attendance to insured
persons and, where the medical benefit is extended to their families, the provision of such
medical benefit to their families, in accordance with the provisions of this Act and
defraying the charges and costs in connection therewith;
(ii) payment of fees and allowances to members of the Corporation, the Standing
Committee and the Medical Benefit Council, the regional boards, local committees and
regional and local Medical Benefit Councils;
(iii) payment of salaries, leave and joining time allowances, travelling and
compensatory allowances, gratuities and compassionate allowances, pensions,
contributions to provident or other benefit fund of officers and servants of the
Corporation and meeting the expenditure in respect of offices and other services set up
for the purpose of giving effect to the provisions of this Act;
(iv) establishment and maintenance of hospitals, dispensaries and other institutions and
the provisions of medical and other ancillary services for the benefit of insured persons
and, where the medical benefit is extended to their families, their families;
(v) payment of contributions to any
62 [State Government,] 63 [***] local authority or
any private body or individual, towards the cost of medical treatment and attendance
provided to insured persons and, where the medical benefit is extended to their families,
their families including the cost of any building and equipment in accordance with any
agreement entered into by the Corporation;
(vi) defraying the cost (including all expenses) of auditing the accounts of the
Corporation and of the valuation of its assets and liabilities;
(vii) defraying the cost (including all expenses) of the Employees’ State Insurance
Courts set up under this Act;
(viii) payment of any sums under any contract entered into for the purposes of this Act
by the Corporation or the Standing Committee or by any officer duly authorised by the
Corporation or the Standing Committee in that behalf;
(ix) payment of sums under any decree, order or award of any Court or Tribunal
against the Corporation or any of its officers or servants for any act done in the execution
of his duty or under a compromise or settlement of any suit or other legal proceeding or
claim instituted or made against the Corporation;
(x) defraying the cost and other charges of instituting or defending any civil or criminal
proceedings arising out of any action taken under this Act;
(xi) defraying expenditure, within the limits prescribed, on measures for the
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
(xii) such other purposes as may be authorised by the Corporation with the previous
approval of the Central Government.
4[28A. Administrative expenses
The types of expenses which may be termed as administrative expenses and the
percentage of the income of the Corporation which may be spent for such expenses shall
be such as may be prescribed by the Central Government and the Corporation shall keep
its administrative expenses within the limit so prescribed by the Central Government.]
29. Holding of property, etc.
(1) The Corporation may, subject to such conditions as may be prescribed by the
Central Government, acquire and hold property both movable and immovable, sell or
otherwise transfer any movable or immovable property which may have become vested
in or have been acquired by it and do all things necessary for the purposes for which the
Corporation is established.
(2) Subject to such conditions as may be prescribed by the Central Government, the
Corporation may from time to time, invest any moneys which are not immediately
required for expenses properly defrayable under this Act and may, subject as aforesaid,
from time to time re-invest or realise such investments.
(3) The Corporation may, with the previous sanction of the Central Government and on
such terms as may be prescribed by it, raise loans and take measures for discharging such
loans.
(4) The Corporation may constitute for the benefit of its staff or any class of them,
such provident or other benefit fund as it may think fit.
30. Vesting of the property in the Corporation
All property acquired before the establishment of the Corporation shall vest in the
Corporation and all income derived and expenditure incurred in this behalf shall be
brought into the books of the Corporation.
31. Expenditure by Central Government to be treated as a loan
[Omitted by Act No. 44 of 1966, section 12 w.e.f. 17th., June, 1967.]
32. Budget estimates
The Corporation shall in each year frame a budget showing the probable receipts and the
expenditure which it proposes to incur during the following year and shall submit a copy
of the budget for the approval of the Central Government before such date as may be
fixed by it in that behalf. The budget shall contain provisions adequate in the opinion of
the Central Government for the discharge of the liabilities incurred by the Corporation
and for the maintenance of a working balance.
33. Accounts
The Corporation shall maintain correct accounts of its income and expenditure in such
form and in such manner as may be prescribed by the Central Government.
19 [34. Audit
(1) The accounts of the Corporation shall be audited annually by the Comptroller and
Auditor-General of India and any expenditure incurred by him in connection with such
audit shall be payable by the Corporation to the Comptroller and Auditor-General of
India.
(2) The Comptroller and Auditor-General of India and any person appointed by him in
connection with the audit of the accounts of the Corporation shall have the same rights
and privileges and authority in connection with such audit as the Comptroller and
Auditor-General has, in connection with the audit of government accounts and in
particular, shall have the right to demand the production of books, account, connected
vouchers and other documents and papers and to inspect any of the offices of the
Corporation.
(3) The accounts of the Corporation as certified by the Comptroller and Auditor
General of India or any other person appointed by him in this behalf together with the
audit report thereon shall be forwarded to the Corporation which shall forward the same
to the Central Government along with its comments on the report of the Comptroller and
Auditor General.]
35. Annual report
The Corporation shall submit to the Central Government an annual report of its work and
activities.
36.Budget, audited accounts and the annual report to be placed before
43 [Parliament]
The annual report, the audited accounts of the Corporation 44 [together with 65 [the report
of the Comptroller and Auditor-General of India thereon and the comments of the
Corporation on such report] under section 34] and the budget as finally adopted by the
Corporation shall be placed before 43 [Parliament] 66 [* * *].
37. Valuation of assets and liabilities
The Corporation shall, at intervals of five years, have a valuation of its assets and
liabilities made by a valuer appointed with the approval of the Central Government:
PROVIDED that it shall be open to the Central Government to direct a valuation to be
made at such other times as it may consider necessary.
CHAPTER IV: CONTRIBUTIONS
38. All employees to be insured
Subject to the provisions of this Act, all employees in factories or establishments to
which this Act applies shall be insured in the manner provided by this Act.
39. Contributions
(1) The contribution payable under this Act in respect of an employee shall comprise
contribution payable by the employer (hereinafter referred to as the employer's
contribution) and contribution payable by the employee (hereinafter referred to as the
employee's contribution) and shall be paid to the Corporation.
67 [(2) The contributions shall be paid at such rates as may be prescribed by the Central
Government:
PROVIDED that the rates so prescribed shall not be more than the rates which were in
force immediately before the commencement of the Employees’ State Insurance
(Amendment) Act, 1989.]
68 [(3) The wage period in relation to an employee shall be the unit in respect of which
all contributions shall be payable under this Act.]
(4) The contributions payable in respect of each 69 [wage period] shall ordinarily fall
due on the last day of the 69 [wage period], and where an employee is employed for part of
the 69 [Excerpt shown. Open the full act in Lexace.