Employees State Insurance Corporation (E.S.I.C) : Constitution, Powers of the Employees State Insurance Corporation (E.S.I.C) | Labor Law

1) Introduction -

      The Employees State Insurance Act,1948  is a great landmark in the history of social security legislation in India. Its object is to protect the interest of workers and their families, who are exposed to the risks of sickness, employment injury, occupational diseases and Maternity in case of female employees. Section 3 to 25 of the Employees State Insurance Act 1948 lays down the provisions relating to the Employees State Insurance Corporation, Standing Committee and Medical benefit Council. Section 3 to7 of the said Act lays down the provisions relating to Employees State Insurance Corporation.

2) Establishment of Employees State Insurance Corporation (E.S.I.C) -

          According to Section 3 of the Employees State Insurance Act,1948  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 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. The Corporation is 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.

3) Constitution of E.S.I.C (Employees State Insurance Corporation) 

          According to Section 4 of the Said Act, the Corporation shall consist of the following members, namely -

        (a) A Chairman to be appointed by the Central Government.
   
        (b) A Vice-Chairman to be appointed by the Central Government;
   
        (c) Not more than five persons to be appointed by the Central Government;
   
       (d) One person each representing each of the States in which this Act is in force to be appointed by the State Government concerned;
 
       (e) One person to be appointed by the Central Government to represent the Union Territories;
 
       (f) Ten persons representing employers to be appointed by the Central Government in consultation with such organizations of employers as may be recognized for the purpose by the Central Government;

        (g) Ten] persons representing employees to be appointed by the Central Government in consultation with such organizations of employees as may be reorganized for the purpose by the Central Government;

        (h) Two persons representing the medical profession to be appointed by the Central Government in consultation with such organization of medical practitioners as may be recognized for the purpose by the Central Government;

         (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.

4) Term of office -

      According to Section 5 of the Act, the term of office of members of the Corporation other than 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 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 appointment or election of his successor is notified.
         The members of the Corporation referred to in clauses (a),(b),(c) and (e) of section 4 shall hold office during the pleasure of the government appointing them.

5) Powers of  E.S.I.C 

                Powers of the Employees State Insurance Corporation are as follows -

    (a) To promote measure for the improvement of Health and welfare of the insured person.

    (b) To promote measures for the rehabilitation and re-employment of insured persons who are disabled or injured.

      (c) To incur expenses in respect of such measures from its fund up to a limit prescribed by the central government.
   

6) Eligibility for reappointment or re-election -

            An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for re-appointment or re-election as the case may be. (Section 6 of the  Employees State Insurance Act 1948 )

7) Authentication of orders, decision etc

            According to Section 7 of the said Act, 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 authorized by him.

See also...

Standing committee

Medical benefits Council