This Act deals exhaustively with the establishment of a Corporation to administer the scheme, methods of managing the finances and procedures regarding adjudication of disputes and claims. In this summary, only main provisions including those in the regulations of the Corporation have been dealt with.

Objective: To provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for certain incidental matters.

Coverage: All factories employing 10 to 19 persons and those not using power and employing 20 or more. The provisions have also been extended to new classes of establishments, shops, hotels, restaurants, cinemas, theatres; motor transport, building construction and newspaper establishments employing 20 or more persons. It covers all employees manual, clerical, supervisory and covers administrative staff and branches of an establishment. The employees covered are only those whose remuneration does not exceed Rs. 1600/- per month.

Wages: Wages for the purpose of this Act means 'all remuneration paid or payable in cash and includes payment for authorised leave, lock-out, strike which is not illegal, layoff and other additional remuneration paid at intervals not exceeding two months e.g. House Rent Allowance, incentive for attendance or production.

Contributions: The contributions of employees and employers are 2.25% and 5% respectively of the
                       wages.

The benefits provided under the Scheme are :-
a. Sickness and extended sickness benefit,
b. Maternity Benefit,
c. Disablement Benefit,
d. Dependent's Benefit,
e. Funeral Benefit and
f.  Medical Benefit

A. Sickness and extended sickness benefit: An insured employee is entitled to sickness cash benefit if from commencement of first Benefit Period, atleast half the number of days is paid during the corresponding contribution period. These benefits are payable at the rate of that average pay of maximum of 91 days during consecutive two benefit periods.

An employee who has put in two years' continuos service preceding the commencement of the spell of a serious illness (Tuberculosis, Cancer, Leprosy, Fracture, Cataract; any other moroid condition, reaction of modern drugs etc.) is entitled to extended sickness benefit. This benefit is available for a maximum of 309 days at a rate benefit is available for a maximum of 309 days at a rate 25% more than standard sickness benefit rate.

B. Maternity Benefit:
An insured female employee is entitled to maternity as under:
Confinement - 84 days (12 weeks) - at double the standard benefit rate.
Miscarriage - 42 days (6 weeks)
Sickness arising out of maternity - 30 days

Note: Certificate is to be submitted to the local office in Form 21 and 23 (along with birth certificate of the child) issued by the Insurance Medical Practitioner.

C. Disablement Benefit:
Temporary disablement: Free Medical treatment and cash benefit at 70% wages as the disablement lasts, provided the disablement should not be less than 3 days including the date of accident.

Permanent disablement: For total disablement, life pension at full rate i.e. 70% of his wage, in the case of partial disablement, proportionate pension will be given. At the option of the beneficiary, the permanent disablement pension can be computed to a lump sum payment while a acting in breach of regulations while travelling in employer's transport or while meeting emergency.

D. Dependents' Benefit:
In the case of insured employee's death arising out of an accident or occupational disease, the dependent will get pension at the rate of 40% more than the standard benefit rate periodically. In the case of widow, it is available for her life time of until she remarries. To sons and unmarried daughters, upto age of 18.

E. Funeral Benefit.
In the case of an insured employee dying, a sum of Rs.100/- is paid to the eldest surviving member of the family or the person who incurs the expenditure for funeral rites.

F. Medical Benefit:
This refers to medical attendance and treatment of the insured person and his family members i.e. wife/husband, children upto 18 years and dependent parents. These benefits are classified as:

i. Restricted Medical Care: Out patient medical care at dispensaries or panel clinics
ii. Expand Medical Care: Consultation with specialist and supply of special medicines and drugs as
    may be prescribed by them and facilities for special laboratory and X-ray examination.
iii. Hospitalisation facilities, service of specialists, drugs and diet as required.

Note: The insured employee has to register himself and his family with an authorised insurance medical
          practitioner for this purpose.

Confinement charges :
An insured employee is paid As. 30/- for the confinement of his wife (not an insured employee) if delivery takes place in a municipal or private hospital or at house and not in any ESI Hospital.

General conditions for availing benefits :
In order to obtain the benefits, the insured employee should (a) register this name on the panel of an Insurance Medical Practitioner (b) obtain and send the regulation certificate from the Insurance Medical Practitioner and submit it to the local office immediately i.e. within three days from the date of issue, personally or by post and (c) in case of hospitalisation, submit Hospital's admission and discharge certificate to the local office.

In the case of sickness or disablement benefit (other than the benefit for permanent disablement) the insured employee shall (a) take medical treatment at a dispensary, hospital, clinic or other institution approved under the Act and carry out the instructions given by the medical officer or medical at ten dent (b) refrain from doing anything which might retard or prejudice his chance of recovery (c) stay in the area in which the treatment is provided and leave only with the permission of the medical office or sick visitor and (d) allow himself to be examined by any duly authorised medical officer or sick visitor.

No insured person can combine two or more sets of benefits but choose only one benefit. Any payment made to an insured employee to which he is legally not entitled to must be repaid to the Corporation.

The obligations on the part of employers under the Act are :-
a) insure all employees covered by the Act,
b) furnish returns and other information required under the Act,
c) no reduction of wages etc. by reason only of liability for contributions under the Act except in respect of benefits similar to benefits conferred under the Act,
d) refrain from dismissing, discharging or punishing an insured employee during the period the said
    employee receives any benefits or during period of medical treatment or absence due to certified
    illness.
d) arrange for first aid and medical care and transport of obtaining such aid ant care till the injured
    insured employee is seen by his Insurance Medical Practitioner.