Employees State Insurance Corporation

Employees State Insurance Corporation

Subject :Economy

Context:

Government allows Employees State Insurance Corporation to invest up to 15% of its surplus funds into equity through exchange traded funds.

Details:

The investment will be confined to Exchanged Traded Funds on Nifty and Sensex. It will be managed by fund managers of asset management companies (AMSs).

Concept:

Employees’ State Insurance Corporation (ESIC)

• It is a state-run organisation under the 1948 Employee State Insurance Act. 
• The organisation provides social security to the majority of the labour force-employees who earn below Rs 25,000 in India.
• Similar to the Provident Fund (PF), the ESI gathers premium by deducting 1.75 percent of the employee’s salary and employers contribute 4.75 percent to ensure the security of their employees.
• State governments are also responsible for 1/8th of the cost of medical benefits
• The ESIC works like an insurance company and take the pooled funds as premium and allows the insured parties to avail many benefits not only for themselves but also for their families.
• Under Section 2A of the ESI Act and Regulation 10-B, it is the employer’s legal responsibility to register their factory/ establishment under the ESI Act within 15 days of its applicability to them.

Source-money control

Benefits:

• The Rajiv Gandhi Shramik Kalyan Yojana offers unemployment allowance – The beneficiary who was unemployed after being insured three or more years, due to the loss, closure of the company or retrenchment or permanent invalidity will get an allowance equal to 50 percent of wage up to two years.
  • The medical benefits will also apply and the benefit will give a chance to the unemployed by upgrading their skills.
•  ESIC Pehchan Card and the medical schemes they offer in their own hospitals.
  • The ESIC Pehchan card-the beneficiary will get two cards – one for the family to avail medical benefits and one for the beneficiary.
  • The ESIC has set up hospitals and clinics across the country for the beneficiaries and their families to receive the maximum benefit.
  • The ESIC Medical Institution also offers MBBS courses.
•  ‘Nirman Se Shakti’ initiative
  • It is launched by the Minister of Labour and Employment
  • It is an initiative to strengthen and modernize the infrastructure of ESIS hospitals and dispensaries in a phased manner.