[Repealed by Act 23 of 2016]
Be it enacted by Parliament in the Fortieth Year of the Republic of India as follows:
The Employees' State Insurance Act, 1948 provides for grant of cash benefits to the employees in the recognised contingencies of sickness maternity and employment injury. It also provides for medical benefit, in kind, to the employees and their families. The Act is at present applicable to non-seasonal factories and certain other establishments. The provisions of the Act are being extended, area-wise, in a phased manner. As on 31-12-1988, the Act covered about 61.68 lakhs employees in 580 industrial centres in the country. The total number of beneficiaries including family members for medical care are about 2.73 crores.
2. The Employees' State Insurance Corporation had set up a Sub-Committee in 1975 to make an indepth study of the various provisions of the Act. This Committee had submitted its report to the Corporation in 1978, Another Committee was set up by the Ministry of Labour in 1981 to review the working of the Employees' State Insurance Scheme. This Committee had submitted its report in 1982. The Corporation had considered the reports of both the Committees and broadly endorsed their recommendations. The two committees together had made a number of recommendations involving amendments of the Act. The Corporation had also, from time to time made certain recommendations for amendments of the Act.
3. Based on the above recommendations, it is proposed to carry out certain amendments in the Act. Some of the more important amendments are
(i) Under the existing provisions, the Act is in the first instance, applicable to the factories. The Act can be extended to an establishment only after giving six months notice to that effect. This creates difficulties in implementing the act in the areas where there are very few factories. It is, therefore, now proposed to make the Act applicable simultaneously to factories and other establishments, where the Act is applicable in a State to such factories and other establishments in any other parts of the State.
(ii) It is proposed to include children up to the age of 21 years and infirm children without any age restriction in the definition of family so as to make them eligible for medical benefit under the Act.
(iii) The number of representatives of the organisations of employers and employees on the Corporation is being raised from five each to ten each so as to provide greater representation to the employers and the employees on the Corporation.
(iv) At present, the wage ceiling for coverage, rates of contribution, period and conditions of grant of benefits and wage limit for exemption from payment of employees' share of contribution are governed by specific provisions of that Act. Any change in these provisions require amendment of the Act which usually takes time. It is, therefore, proposed to provide for specifying all these matters by the Central Government under the rules.
(v) It is proposed to do away with the institution of principal Officers of the Corporation which are to be appointed by the Central Government and to empower the Corporation to make all appointments except that of the Director General and the Financial Commissioner who will continue to be appointed by the Central Government. This is because the other three erstwhile Principal Officers are the career officers from the Corporation itself.
(vi) At present, the Act provides that the Government shall specify the methods of recruitment, salaries and allowances and other conditions of service of officers and the staff of the Corporation. This has resulted in delay in amending the rules even when these conform to changes made in the corresponding rules for the Government servants. It is now proposed to give powers to the Corporation to frame regulations in respect of these matters, subject to the condition that the regulations framed by them would be the same as applicable to the Government servants drawing corresponding scales of pay and if any deviation is proposed to be made, they would have to seek the approval of the Central Government.
(vii) A provision is being made for setting up of an independent machinery for recovery of arrears of the Employees' State Insurance contributions, etc., as the process of recovery through State machinery has caused a lot of delay.
(viii) It is proposed to make suitable provisions for continuance of medical benefit to insured persons who have to leave the insurable employment due to employment injury and retired insured persons subject to payment of contribution.
(ix) With a view to curb the misuse of cash benefits, it is proposed to make a suitable provision disentitling the insured person from sickness and disablement benefits for any day for which he receives any wages or for any day on which he remains on strike.
(x) To put a cub on unnecessary litigation by the employers, it is proposed to provide that no application from an employer disputing the claim of the Corporation for payment of contribution or other dues shall be entertained by Employees' Insurance Court unless the employer deposits fifty per cent of the amount claimed to the Court.
(xi) The existing penal provisions are being made more stringent.
(xii) It is proposed to make a suitable provision for withdrawl of the benefit provisions from any factory or establishment, if it is found that the benefits are being misused.
(1) This Act may be called the Employees' State Insurance (Amendment) Act, 1989.
(2) It shall come into force on such date2 or dates as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and for different States or for different parts thereof and any reference in any such provision to the commencement of this Act shall be construed in relation to any State or part thereof as a reference to the coming into force of that provision in that State or part thereof.
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After Section 28 of the principal Act, the following section shall be inserted, namely:
28-A. Administrative expenses. The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall be such as may be prescribed by the Central Government and the Corporation shall keep its administrative expenses within the limit so prescribed by the Central Government. .
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For Section 99 of the principal Act, the following section shall be substituted, namely:
99. Medical care for the families of insured persons. At any time when its funds so permit, the Corporation may provide or contribute towards the cost of medical care for the families of insured persons. .
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1 Act of Parliament received the assent of the President on 23-8-1989, and was published in the Gazette of India, Extraordinary, Part II, Section 1, No. 34, dated 28-8-1989.
2 Sections 2(i) and (iii), 3(iii), (iv)(a), (v), (vi), (vii), (viii) and (ix), 4, 5, 6, 7(iii), (b) and (c), 8, 10, 11, 12(ii), 15, 17(i), 22, 24, 25, 26, 27, 29, 30, 31, 32(i) and (ii), 33, 34, 36, 37, 38, 39, 40, 41, 42, 43, 44 and 47, came into force, w.e.f. 20-10-1989 [vide S.O. 842(E), dated 20-10-1989]. Section 7(ii), came into force, w.e.f. 8-11-1989 [vide S.O. 935(E), dated 8-11-1989]. Sections 2(ii) and 7(iii)(a), came into force, w.e.f. 16-5-1990 [vide S.O. 387(E), dated 16-5-1990].
3 Repealed by Act 30 of 2001, Section 2 and Schedule I.
4 Repealed by Act 30 of 2001, Section 2 and Schedule I.
5 Repealed by Act 30 of 2001, Section 2 and Schedule I.
6 Repealed by Act 30 of 2001, Section 2 and Schedule I.
7 Repealed by Act 30 of 2001, Section 2 and Schedule I.
8 Repealed by Act 30 of 2001, Section 2 and Schedule I.
9 Repealed by Act 30 of 2001, Section 2 and Schedule I.
10 Repealed by Act 30 of 2001, Section 2 and Schedule I.
11 Repealed by Act 30 of 2001, Section 2 and Schedule I.
12 Repealed by Act 30 of 2001, Section 2 and Schedule I.
13 Repealed by Act 30 of 2001, Section 2 and Schedule I.
14 Repealed by Act 30 of 2001, Section 2 and Schedule I.
15 Repealed by Act 30 of 2001, Section 2 and Schedule I.
16 Repealed by Act 30 of 2001, Section 2 and Schedule I.
17 Repealed by Act 30 of 2001, Section 2 and Schedule I.
18 Repealed by Act 30 of 2001, Section 2 and Schedule I.
19 Repealed by Act 30 of 2001, Section 2 and Schedule I.
20 Repealed by Act 30 of 2001, Section 2 and Schedule I.
21 Repealed by Act 30 of 2001, Section 2 and Schedule I.
22 Repealed by Act 30 of 2001, Section 2 and Schedule I.
23 Repealed by Act 30 of 2001, Section 2 and Schedule I.
24 Repealed by Act 30 of 2001, Section 2 and Schedule I.
25 Repealed by Act 30 of 2001, Section 2 and Schedule I.
26 Repealed by Act 30 of 2001, Section 2 and Schedule I.
27 Repealed by Act 30 of 2001, Section 2 and Schedule I.
28 Repealed by Act 30 of 2001, Section 2 and Schedule I.
29 Repealed by Act 30 of 2001, Section 2 and Schedule I.
30 Repealed by Act 30 of 2001, Section 2 and Schedule I.
31 Repealed by Act 30 of 2001, Section 2 and Schedule I.
32 Repealed by Act 30 of 2001, Section 2 and Schedule I.
33 Repealed by Act 30 of 2001, Section 2 and Schedule I.
34 Repealed by Act 30 of 2001, Section 2 and Schedule I.
35 Repealed by Act 30 of 2001, Section 2 and Schedule I.
36 Repealed by Act 30 of 2001, Section 2 and Schedule I.
37 Repealed by Act 30 of 2001, Section 2 and Schedule I.
38 Repealed by Act 30 of 2001, Section 2 and Schedule I.
39 Repealed by Act 30 of 2001, Section 2 and Schedule I.
40 Repealed by Act 30 of 2001, Section 2 and Schedule I.
41 Repealed by Act 30 of 2001, Section 2 and Schedule I.
42 Repealed by Act 30 of 2001, Section 2 and Schedule I.
43 Repealed by Act 30 of 2001, Section 2 and Schedule I.
44 Repealed by Act 30 of 2001, Section 2 and Schedule I.
45 Repealed by Act 30 of 2001, Section 2 and Schedule I.
46 Repealed by Act 30 of 2001, Section 2 and Schedule I.