ESI Full Form

What is the full form of ESI?

The ESI full form is the Employees’ State Insurance. ESI is a health insurance program established to provide medical and monetary benefits to Indian workers. It is managed and governed by the ESIC (Employees State Insurance Corporation). ESIC is an autonomous corporation within the Indian Government’s Ministry of Labor and Employment.

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Origins of ESI

• ESI was formed on February 24, 1952, to serve as an Indian employee health insurance service. It is wholly administered by the ESIC in accordance with the ESI Act of 1948.
• In March 1943, the Indian Government commissioned Professor B.N. Adarkar to compile a report on HIS for Indian laborers (health insurance scheme).
• The declaration eventually led to the development of the ESI Act, of 1948, which underlined the necessity to safeguard Indian workers against contingencies such as sickness, temporary or permanent physical impairment, maternity, and occupational injury-related mortality that directly impacted their incomes.
• Employee ESI was first adopted in Kanpur on February 24, 1952. Initially, the ESI Act only applied to laborers, but later it was extended to all employees earning less than a specified wage(15,000/-).

Key objects of ESI

• The ESI Act of 1948 was expressly enacted to offer monetary compensation in the event of temporary or permanent disability, maternity, illness, death due to a work-related injury, etc.
• The ESI Act of 1948 provides medical benefits for Indian laborers who work not only in factories but also in businesses with at least 10 employees, as well as their dependents.

Organizations covered as per ESI

• The ESI scheme is mandatory across India with the exception of Arunachal Pradesh and Manipur.
• The ESI plan for Workers is being expanded to include preview theaters, movie theaters, hotels, restaurants, retailers, and newspapers.
• The ESI plan for Workers is also offered to medical facilities and private educational institutions with at least ten employees.

Documents required for ESI registration

The document required for ESI registrations is listed below.

• The business institution or company’s PAN card.
• The business or company’s address verification record.
• Copies of the registration certificate must be provided if the organization is a Private Limited.
• Certificate of Registration for all organizations.
• A comprehensive list of employees and their monthly salaries.
• A list of the company’s associates, directors, and shareholders.
• The company’s bank statements and scraps of evidence indicating when its operations began are identical.

ESI Benefits

ESI provides medical coverage to Indian workers in the event of an accident, disability, illness, pregnancy, or even death on the job, as well as unemployment benefits. The advantages of the ESI system are listed below. 

1. Physical Disability Benefits
2. Maternity Benefits
3. Medical Benefits
4. Sickness Benefit
5. Dependent Benefit
6. Unemployment Allowance