ESI is a massive social security system designed to provide social protection for "workers" in the organised sector against unknown events such as sickness, maternity, disablement, and death due to accident experienced during working, and provide medical treatment to covered employees as well as their families.

During the period of incapacity for recovery of health and working capacity, employees enrolled in the plan receive complete medical treatment. It gives monetary aid to compensate for pay loss while absent from work due to illness, maternity, or workplace injury.

Within 15 days of the ESI Act, 1948 becoming relevant to them, all establishments and factories employing more than 10 employees are required to register for ESI registration.

ESIC

As a self-financing system for social security and health insurance, Employee State Insurance Corporation (ESIC) offers a range of services to employees and their families that include medical insurance, sickness insurance, maternity insurance and disability insurance.

Employers and employees pay a fixed proportion of salaries to fund the benefits given by the plan. A covered employee pays 1.75 percent of their wages to ESIC, and a covered employer pays 4.75 percent. An additional 1/8th of the cost of medical benefits is covered by the state government

Benefits of ESI

  • Provides employees with comprehensive medical care and assistance.
  • Employee's family members are also included in this calculation.
  • Units with more than 10 employees must comply.
  • Different ESI dispensaries and hospitals can make use of it.
  • Amounts paid will be refunded.
  • Access to Medical Care in ESI Dispensaries and Hospitals.

Significance of ESIC Registrations

ESI coverage extends to the following establishments with 10 or more employees:

  • Cinemas.
  • Shops.
  • As compared to production, hotels and restaurants exclusively provide services.
  • Medical and educational institutions that are privately owned.
  • Establishments for roadside motor transportation
  • Establishments that print newspapers.

To qualify for coverage in some states, you must have 20 or more employees. Only a small number of state governments have extended the programme to include medical and educational establishments.

Process of ESI Registration

  1. Enrolling in the ESI Program - When the Act becomes effective, employers must register by submitting an Employer's Registration Form (Form-01) to the relevant Regional Office within 15 days.
  2. Getting a Code Number - The Code Number is a 17-digit identification number that must be used in all correspondence connected to the Scheme. In addition to the Form 1, the Form 3 (Return on Declaration) must also be submitted.
  3. Employee Benefits - Form1 (Declaration Form) and two family photos must be submitted by the employee's employer to the relevant ESI branch office at the time of commencing an insurable employment.
  4. Number of Insurance Coverage - This will be followed up by assigning the employee a unique Insurance Number so he can be identified in the system.
  5. Temporary Identification Card - In addition, the employees will receive a temporary identification card that will allow them to receive medical benefits for themselves and their families for a period of three months.
  6. Permanent Photo ID Card - Afterwards, he will be issued a permanent photo ID. When a person's employment changes, they do not need to re-register. If you change jobs, you don't need a new registration.
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