The Ministry of Labour and Employment issued The Steps Taken to Improve working of ESIC Scheme on July 25th 2024.The Employees State Insurance Act of 1948 is a crucial piece of legislation designed to provide social security benefits to employees in the organized sector. Under this Act, factories and establishments with ten or more employees are covered, provided their wages do not exceed Rs 21,000 per month (or Rs 25,000 for persons with disabilities). Despite its importance, the Act does not extend its protections to the unorganized sector, which remains a significant area of concern for social security.
Recent Enhancements to the ESI Scheme
There have been several notable enhancements and updates to the ESI scheme, aimed at improving the quality and accessibility of benefits for insured individuals.
1. Increased Benefit Rates
One of the most significant changes is the enhancement of benefit rates. The Permanent Disablement Benefit (PDB) and Dependents’ Benefits (DB) have been increased. This adjustment is crucial as it directly impacts the financial support provided to individuals who suffer permanent disabilities or to the families of deceased insured persons. These enhanced rates are intended to offer better financial security and support to beneficiaries who rely on these benefits for their livelihood.
2. New Scheme for Superannuated Beneficiaries
A new scheme has been approved to address the needs of superannuated beneficiaries. Previously, individuals who had contributed to the ESI scheme but were not covered at the time of their superannuation faced challenges in accessing continued medical care. The new scheme aims to bridge this gap by providing medical care, including specialized treatments, to these beneficiaries. This is a significant step towards ensuring that individuals who have been part of the ESI scheme throughout their working life do not lose access to essential healthcare services upon retirement.
3. Introduction of Online Modules
To streamline and modernize the administration of the ESI scheme, an online module has been introduced for updating and editing the particulars of Insured Persons (IPs) and their family details. This digital platform allows for easier management of personal information and ensures that the data remains current, which is essential for processing benefits accurately.
Additionally, an online portal has been launched for the submission of cash benefit claims. This initiative is designed to provide a hassle-free experience for Insured Persons and Insured Women (IWs), reducing the time and effort required to claim benefits under the ESI scheme.
4. Aadhaar-Based Authentication
In a bid to enhance the security and efficiency of the ESI scheme, Aadhaar-based authentication has been adopted on a voluntary basis. This system helps in verifying the identity of Insured Persons and their family members, making it easier for them to access social security benefits, including medical and cash benefits. Aadhaar authentication is expected to reduce fraudulent claims and ensure that benefits are directed to the rightful recipients.
5. Covid-19 Related Relaxations
The Covid-19 pandemic brought unprecedented challenges, including difficulties in accessing ESI benefits. In response, the ESI scheme introduced relaxations in contributory conditions for the pandemic period from April 1, 2020, to September 30, 2020. Rule 55(1) and Rule 56(1) of the ESI (Central) Rules, 1950 were amended to ease the hardships faced by insured persons in claiming maternity and sickness benefits during this period. This temporary relaxation was crucial in ensuring that individuals who were affected by the pandemic could still access necessary benefits without undue complications.
Conclusion
These recent updates and enhancements to the Employees’ State Insurance scheme reflect a commitment to improving the social security framework for workers in the organized sector. By increasing benefit rates, introducing new schemes, leveraging technology, and adapting to the challenges posed by the Covid-19 pandemic, the ESI scheme is evolving to better meet the needs of its beneficiaries.
