Explain in detail organization and structure of ESL Corporations provided for in Employees State Insurance Act. 1948.
Question
Explain in detail organization and structure of ESL Corporations provided for in Employees State Insurance Act. 1948.
Solution
The Employees State Insurance Act of 1948 (ESI Act) was enacted by the Parliament of India for the benefit of employees and to provide them with certain benefits in case of sickness, maternity, and employment injury. The Act also extends to provide benefits to dependents of insured persons in case of their death due to employment injury.
The organization and structure of the ESI Corporation are as follows:
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ESI Corporation: The ESI Corporation is the apex body that directs the affairs of the scheme. It consists of members representing Employees, Employers, Central Government, State Government, Medical Profession and Parliament. The Minister of Labour, Government of India is the Chairman of the Corporation.
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Standing Committee: The Standing Committee is the executive body of the Corporation and is responsible for administering the affairs of the Corporation. It is composed of 17 members and functions subject to the overall control of the Corporation.
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Medical Benefit Council: The Medical Benefit Council is an expert body advising the Corporation on matters related to medical benefit. It consists of members representing Employers, Employees, Medical Profession and the Central and State Governments.
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Regional Boards, Local Committees, and Regional and Local Medical Benefit Councils: These are bodies at the regional and local levels to ensure the scheme is implemented effectively. They are responsible for assisting the Corporation in administering the scheme in their respective regions.
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Director General: The Director General is the Chief Executive Officer of the Corporation and is responsible for its smooth functioning under the direction of the Corporation.
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Employees: The employees of the Corporation are appointed by the Central Government or by the Corporation with the approval of the Central Government.
The ESI Act has been designed to provide comprehensive social security benefits to workers. The Act also provides reasonably good medical care to workers and their immediate dependants. The ESI scheme is funded by contributions from employers and employees. The State Governments share one-eighth of the expenditure on Medical Benefit within the per capita ceiling of Rs.1500/- per Insured Person per annum.
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